“People who own property feel a sense of ownership in their future and their society. They study, save, work, strive and vote. And people trapped in a culture of tenancy do not.”
– Henry Louis Gates
The path to wealth is most often created through ownership. This is true for individuals, businesses and for countries, states, and cities. It is important for countries to have their “national champions” so that they control critical manufacturing and technology as a matter of national defense and economic strength. It is important for states to actively compete to retain their incumbent industries and diversify their tax base through diversification of their economy. By locating hard assets in their states, they generate revenue, driving downstream supply chain and small business growth. It is perhaps especially important for cities and towns to be aware of who owns the buildings within the central business district, the retail around their town squares and key entertainment districts, and their business parks.
The importance of this has increased as supply chains were exposed during the pandemic of 2020 and the dramatic change in office occupancy, along with its associated impact on retail. The United States passed historic “place-based” “industrial policy” legislation like the CHIPS Act and has spent billions to help restore critical supply chains in everything from semiconductors to antibiotics. This, in part, has led to a wave of industrial growth and foreign investment across the United States. At a local level, central business districts and suburban office parks occupancies have plummeted, as has the downtown retail that depended on it. This has forced mayors to consider unique incentives to convert and catalyze new uses in these spaces. Too often they have learned that they were unaware of who the owners were. Local ownership is not a necessity to care for a community, but it does logically increase the ability to interact and find solutions.
Owners from outside the area and private equity investment are not a bad thing. In fact, it is a blessing and necessary when traditional lending is difficult. However, when it becomes unbalanced with local investment, it poses a risk that will slow progress and prevent money from being reinvested in the community. When local wealth is created, it is more than likely reinvested into the community – and the same is true for states and national governments.
Do you know who owns the critical assets, infrastructure, and who is responsible for most of your tax base? Do you know how to contact them to discuss opportunities? Do you know what motivates them? All of these will be necessary for you to develop and implement successful policies, take action to build a more resilient economy, and restore neighborhoods.
Let’s have a great week, lift each other up and move forward together.
Kenny McDonaldPresident and CEOColumbus Partnership