Boom-and-Bust Housing Markets /  by H. Pike Oliver

On August 4, 2012, the Sacramento Bee published an article that describes the boom-and-bust nature of that region's housing market since 1976.  Included, is a graphic (see below) that illustrates the location of the thirty metropolitan areas in the USA with the most and fewest quarters when home prices changed by two percent or more.

The Jobs Recovery /  by H. Pike Oliver

The folks at Chart-of-the-Day have created (on August 3, 2012) another great graphic display that compares where we are in the recovery of jobs following the Great Recession with average job recovery of all recessions since 1954 and the jobs recovery following the 2001 Technology Bubble Recession.  Our current jobs recovery since the end of the Great Recession in June 2009 is similar to that of the recovery of the early 2000s but much slower than the average jobs recovery since the mid 1950s. Image

A House Designed to Survive a Fire /  by H. Pike Oliver

When the Bui/Bender residence (pictured below) survived the devastating 1993 fire in the Southern California Coastal town of Laguna Beach, people called it a miracle. The fact that the only damage to the structure was a drainage downspout disloged by a fire hose may have had more to do with the fact that it was designed and constructed in accordance with the principles outlined in this article from Fine Home Building.

Otto Leuschel's Regeneration of Germantown, NY /  by H. Pike Oliver

On Friday, July 20, 2012, I took several photos on Main Street in Germantown, NY, about 115 miles north of New York City (Manhattan). Two "gems" on this little street are Otto's Market (established as Central Market in 1927 and reestablished as Otto's Market in 2006) and the Germantown Variety Store (established 2012.) Both businesses are owned and operated by Otto Leuschel who left an important job at Whole Foods to become the spark plug for the revitalization of this small Hudson Valley town. Otto is doing great work in this little burg.  I did not get a chance to ask Otto who his customers are, but I suspect affluent part-time exurbanites and weekend vacationers from the greater New York area are the source of much of his business.

Who will invent the future now? /  by H. Pike Oliver

I missed Walter Issacson's review of Jon Gertner's book about Bell Labs that appeared in the New York Times this past April. When I finally read it, It reminded me of the key role that Bell Labs played in originating the technology that led to solid state electronics and the Internet--literally changing the world.  It seems like we lack a similar institution to help us create the next technological leap.

Vijay Sundar (PRE ’12) Wins 2012 Cornell Hospitality Business Plan Competition /  by H. Pike Oliver

Vijay sundar Last week, at the 87th Annual Hotel Ezra Cornell, the winning team of the 2012 Cornell Hospitality Business Plan Competition was co-headed by Vijay Sundar, a second year in the Program in Real Estate. The Cornell Hospitality Business Plan Competition is an annual competition hosted by The Leland C. and Mary M. Pillsbury Institute for Hospitality Entrepreneurship and students undertake a four month process in preparing their business plan. The business plan development is a rigorous process, with each plan offering robust market research, financial models, capital raising plans and an exit strategy. This year there were 30 submissions and only five finalists were selected to present during the Hotel Ezra Cornell weekend. As a finale to the competition, the winning team is awarded $15,000 to put their visionary business plan into action. This year’s winning business plan was The DC Factory and was co-headed by Vijay Sundar, a second year in the Program in Real Estate, who is preparing to graduate from the Program next month.

The concept, The DC Factory, was developed in conjunction with Anukul Chandhok, a senior undergraduate student in the School of Hotel Administration at Cornell. Eariler this year, the two met through mutual friends in the Hotel School’s Negotiations class and quickly realized that their business idea had serious potential.

Both Anukul and Vijay hail from India and their concept is focused on the market which they know best - India. After perceiving a significant opportunity in the market, the two devised a plan that would bring healthy and hygenic food service to the bustling subways beneath the streets of India’s second largest metropolis – New Delhi. The food stands would operate in the subway stations and serve traditional Indian food and rolls to New Delhi’s commuters and subway patrons. Vijay stated that, “while there are a lot of food options in India, many of the options are not very healthy or are lacking in the proper preparation and handling hygiene.” Thus, there is significant opportunity for The DC Factory to enter the market with a convenient and healthy dining alternative.  The plan for The DC Factory also includes an incorporation of information technology to differentiate and add further convenience for customers, allowing customers to pre-order and pay on their smart phones and pick up their order at their desintation station with a minimal wait time.

The $15,000 first prize will be used to start to implement the program. They plan to implement The DC Factory first in New Dehli, because the metro system infrastructure is the most developed in that city. They would then look to expand to other cities where the Metro infrastucture is being developed.

Reflecting on the business plan competition, Vijay noted, “This competition was a great experience, not just for the prize money, but also to have exposure to many potential investors who are very interested in the business plan. As a result of our presentation at Hote Ezra Cornell, they have asked for our contacat info so that they might invest in our concept.” This type of exposure to hospitality industry leaders and entrepreneurs offers unparalled access for students to connect with venture capital sources. Vijay strongly advocates that other students should do this competition because they will develop skills and build credibility with investors in the community, which is an integral part of raising money to turn a great idea into a successful business enterprise.

By next fall, when the 2013 Cornell Hospitality Business Competition will begin anew, perhaps The DC Factory will already be well on its way to satisfying the hunger of commuters all around New Delhi. The plan is certainly off to a promising start.

Norval LaVene - Friend and Mentor /  by H. Pike Oliver

Norval LaVene died on February 29, 2012. I had the pleasure of working with him during the 1980s and 1990s and learned a great deal from Norval--about the marketing of master planned communities and life in general.  Norval was a gentle, but strong person who struck a wonderful balance on almost everything. See below for a copy his obituary that appeared in the Los Angeles Times.  I took the liberty of correcting a few typos (copy editing appears to a victim of reduced newspaper revenues.) Norval LaVene, a widely known marketing and communications expert, passed away Wednesday, February 29, from natural causes. He was 90. Born in San Luis Potosi, Mexico, of American parents, LaVene grew up in San Mateo and graduated with a BA in economics from UCLA, where he was a Kappa Sigma. He served as an officer in the U.S. Navy from 1944 to 1948. In 1953, with Ted Stromberger and Don McKenzie, he co-founded Stromberger, LaVene, McKenzie, a Los Angeles advertising agency. In 1964 he left this company, to develop a resort south of Puerta Vallerta, Mexico, at Mismaloya, site of the movie, "Night of the Iguana." Upon his return, as a Vice President of the Newhall Land and Farming Company, LaVene played a major role in the development of the new town of Valencia. In 1971 he founded Intercom, a marketing and communications firm, where he worked on a number of large scale developments: Gainey Ranch in Arizona; The Woodlands in Texas; Pebble Beach, Diamond Bar and a number of Irvine Company communities. He was a member of the Urban Land Institute and a past director of the Building Industry Association.  A lover of the outdoors, LaVene was dedicated to the environmental aspects of land development. He celebrated his 70th birthday trekking the Himalayas, and was an avid backpacker will into his eighties. He is survived by his wife, Kaye Courter LaVene; his daughters, Meredith and Shelley LaVene; his stepson, Courter Shannon; two granddaughters, four grandsons, and two great-grandsons. No services have been planned. Memorial contributions may be made to a charity of choice. Published in the Los Angeles Times on March 11, 2012