How NM can better market itself to business

Dealing with these seven attributes can help the state move up in the eyes of businesses

I have given more than 200 speeches in most major and secondary markets in the past two years. Whenever I visit a new place, I study it in advance and pick other markets that are similar, i.e. status quo, or at the next level, i.e. aspirational, with regard to commercial real estate.

The markets I chose for Albuquerque, based on size, industry mix and location, were Tucson and San Antonio — status quo — and Madison, Wisc., and Austin — aspirational.

While I may appear knowledgeable on any given market, nobody knows a town like its residents. I learn far more from them than they do from me. But on a macro level, here are the main factors that can differentiate New Mexican markets from national competitors.

Talent

Availability of talent is consistently the No. 1 factor for occupiers in location decisions. The biggest creator of this talent pipeline is, of course, the University of New Mexico. Leaders should double down on its ties to the broader business community and beyond. It should strengthen its international outreach, particularly in Asia. These students bring more than full tuition; they bring employers, development dollars and innovation.

It is one thing to create a steady stream of talent from UNM; it is another to retain graduates as workers in the state. The hip, young scene is clearly growing in Nob Hill and in Santa Fe, but it must be more than beer gardens and art galleries. It must be a total live-work-play environment.

Industry Mix

Education and health-care institutions can have a positive impact on slower-growth secondary markets by attracting young talent and older residents. Along with the government/military, “Eds & Meds” provide an important industry base, which should be leveraged to create high-paying jobs.

Infrastructure

On a recent trip to Japan, I marveled at the well-kept roads and bridges. Over the past 20 years, the Japanese government has spent $5 trillion to jump-start the economy to no avail. Austin ran into a similar debacle. Even the fastest-growing markets can’t snap their fingers and create infrastructure that works. Consider the fate of the newly completed Spaceport outside of White Sands and you will understand my point. Infrastructure should stimulate growth, and this often involves decidedly unhip or even invisible projects (such as) widening highways, modernizing rail lines, etc.

Amenities

Given New Mexico’s reputation for natural beauty and high-end retail, my wife accompanied me on this trip. We visited the Georgia O’Keefe Museum in Santa Fe and despite my admitted cynicism about art, something hit me. I never knew the depth, breadth and longevity of her work. I saw a key selling point in an unexpected place. It should inspire industry leaders to capitalize on the region’s cultural assets.

Cost

Albuquerque’s reputation as a low-cost market may attract some companies, but not necessarily the larger occupiers that bring high-paying jobs, which are force multipliers by creating even more jobs. Let me be blunt: If you promote cost as your top attraction, get in line. Markets should drive the top line of companies, not the bottom line by saving them a few bucks on rent. Deep pools of talent matter most to companies; the cost of that labor matters somewhat, and the cost of occupancy matters least.

Crime

In Albuquerque, the locals told jokes about the show “Breaking Bad” and crystal meth. This was funny until they said much of it was true. I live in Baltimore and I wish “The Wire” were never made. The show, depicting the local narcotics scene, is mentioned by potential investors all over the world. We as a business community must find ways to move forward.

Hope

Competition among cities is now a blood sport. And it’s only going to get worse, as most economists believe the United States is on an indefinite slow-growth trajectory. This region has all the ingredients for success. The upside potential is legitimately there. It also has the secret weapon of hope immortalized byGeorgia O’Keefe. Albuquerque and northern New Mexico are indeed breaking good.