Speaker 1: Bloomberg Audio Studios, Podcasts, radio News.
Speaker 2: You're listening to Bloomberg Business Week with Carol Messer and
Speaker 2: Tim Steneveek on Bloomberg Radio.
Speaker 1: Hey, Carol, I don't know if you heard about this,
Speaker 1: but on Sunday, as it approached the narrow bob Elman
Speaker 1: deb straight off Yemen's coast, a commercial ship in the
Speaker 1: Red Sea changed its destination signal. It's something widely available
Speaker 1: on the Internet for most vessels, so anyone can see it.
Speaker 1: It changed it from an Iraqi port to all crew Muslims.
Speaker 3: I saw this. This is pretty cool.
Speaker 4: Yeah.
Speaker 3: The changed it for a good reason.
Speaker 1: Yeah, this is the whole point of changing this was
Speaker 1: a message to the houthy militants of Yemen who say
Speaker 1: they're targeting ships linked to Israel and to its allies
Speaker 1: to pressure them over the war in Gaza. So the
Speaker 1: idea was, okay, well, our ship will be safe if
Speaker 1: we change our call signal and say, okay, we're all
Speaker 1: Muslims here, so don't attack us.
Speaker 5: Yeah.
Speaker 3: I think it's incredible, all right, And then you know,
Speaker 3: you've got a lot of stuff going on in terms
Speaker 3: of concerns about Red Sea not getting around it. If
Speaker 3: you have to go a different route, the extra costs,
Speaker 3: and then there's also the drought in the Panama Canal.
Speaker 3: Needless to say, global shipping has been upended in recent
Speaker 3: months in a big way.
Speaker 1: Well that's why we invited David Dyker on the show.
Speaker 1: He's Associate partner and Shipping Practice co leader at Mackenzie
Speaker 1: and Company. He joins us from Summit, New Jersey. David,
Speaker 1: good to have you with us this afternoon. You guys
Speaker 1: crunch the numbers at Mackenzie. What's a bigger deal here?
Speaker 1: Is it the disruptions in the Red Sea or is
Speaker 1: it what's happening in the Panama Canal which is having
Speaker 1: a bigger global economic impact.
Speaker 4: Well, first of all, it's great to be on the show.
Speaker 4: I've been a long time fan, and it's great to
Speaker 4: be speaking with both of you. In response to your
Speaker 4: question here, the answer is you're not gonna like it.
Speaker 4: But the answer is both right. You can't look at
Speaker 4: any of these in isolation.
Speaker 2: Right.
Speaker 4: So when we were first of you looking at the
Speaker 4: Panama Canal back in October, when they had started to
Speaker 4: announce some of the restrictions, you know, we had started
Speaker 4: to look at the numbers. Then but then when you
Speaker 4: start to compound this with the situation in the Red Sea,
Speaker 4: it obviously changes everything. So no ship or no investor
Speaker 4: that has approached just as looking at either of these
Speaker 4: in isolation, all right.
Speaker 3: So all right, they're all looking at it together. That
Speaker 3: makes sense, right, If you're running a company or an organization,
Speaker 3: you kind of need to keep your eyes on it.
Speaker 3: Having said that, and I'm assuming some of your customers
Speaker 3: or your clients are reaching out to you. What are
Speaker 3: you saying, I mean, do they need to start making
Speaker 3: some changes longer term? Or I mean, how do you
Speaker 3: assess the situation like this in an environment David where
Speaker 3: I think it's safe to say over the last couple
Speaker 3: of years, we've talked about the pushback on globalization. We're
Speaker 3: near shre and like, how how are you advising some
Speaker 3: of the folks in your world, the clients in your world.
Speaker 4: Yeah, you know, the first question I usually get from
Speaker 4: a lot of investors is, David, when are we going
Speaker 4: to have a normal year?
Speaker 3: Give up on it?
Speaker 4: And the answer is, I don't think that we will
Speaker 4: ever have a normal year. In shipping, you always have
Speaker 4: to remind everybody just as technology and you know, the
Speaker 4: products that we manufacture are getting more and more sophisticated.
Speaker 4: The supply chains and the logistics that support them and
Speaker 4: provide those manufacturing components are getting even more sophisticated. So
Speaker 4: the number one piece of guidance that we give to
Speaker 4: to investors that approach us, to our clients that are
Speaker 4: manufacturing these goods is this is business as usual and
Speaker 4: will continue to be business as usual for the future.
Speaker 4: Just supply chain disruptions that last a month or longer
Speaker 4: are now becoming more and more frequent, and on average
Speaker 4: are happening every three point seven years.
Speaker 3: But how much are people taking that advice and actually saying, Okay,
Speaker 3: I'm going to build a plant in my backyard or
Speaker 3: I'm going to make sure that I've got the ability
Speaker 3: to access either my supply chain make sure that my
Speaker 3: suppliers are more locally based. How much of that is
Speaker 3: actually resulting in action that changes how we've been doing
Speaker 3: things for decades.
Speaker 4: Quite a lot of it. And so there's two main
Speaker 4: things that we see a lot of our clients doing.
Speaker 4: The first is that they are elevating the importance of
Speaker 4: their supply chain organizations. That means not only building the
Speaker 4: capabilities and the in house technologies, and a recent pal
Speaker 4: just showed with our supply chain executives across a lot
Speaker 4: of our client base is that ninety eight percent of
Speaker 4: them plan to increase their spend and supply chain related
Speaker 4: technologies over the next five years, which is very significant
Speaker 4: compared to pre pandemic. The second thing that they're doing
Speaker 4: is just as you were alluding to, is they are
Speaker 4: starting to look at a longer term supply chain plants
Speaker 4: and starting to think through, Okay, what are some of
Speaker 4: the strategies I need to have in place for events
Speaker 4: that I can't necessarily foresee. That means omni shoring or
Speaker 4: potentially looking at potential different routes that they can take
Speaker 4: to get to some of their manufacturing locations. Now everything's on.
Speaker 1: The table, So David does it. I'm wondering, like, you know,
Speaker 1: obviously understand the economic implications of this, but I'm thinking about,
Speaker 1: you know, other geopolitical associations or implications of this. I'm
Speaker 1: thinking about, you know, there are certain things that we
Speaker 1: can actually build closer to home, but there are certain
Speaker 1: things like commodities that just can't be things like cocoa
Speaker 1: for example, or coffee for example. Things that you know,
Speaker 1: we rely on to be shipped from all over the world. Here,
Speaker 1: what ends up happening to our economy? I mean, do
Speaker 1: we all become more insulated.
Speaker 4: The pushare is to become more and more resilient. And
Speaker 4: if we were to put this back and focus of
Speaker 4: the Panama Canal and some of the commodities that you're
Speaker 4: mentioning there are going to be dramatically affected. You if
Speaker 4: you look at the Panama Canal, those economies that bear
Speaker 4: the brunt of this are those that are closest to
Speaker 4: the canal and a lot of those a lot of
Speaker 4: those economies are very tied to perishable goods like bananas
Speaker 4: or other refrigerated cargoes there. And the answer is those
Speaker 4: things cannot just disappear. We have to reinforce and make
Speaker 4: those supply chains more resilient. And where we can't, ultimately
Speaker 4: you'll see these companies have to increase the costs that
Speaker 4: they ultimately pass on to customers because it's just become
Speaker 4: more expensive operate those supply chains.
Speaker 3: Yeah, it's interesting and at a time when we know
Speaker 3: that certainly the US Central Bank, you know, we had
Speaker 3: another hot inflation print and it's just you know, struggling
Speaker 3: to make sure that prices no longer are rising at
Speaker 3: the levels we've They've come down a lot in the
Speaker 3: last twelve months, but you do wonder about other stress
Speaker 3: points that either put a floor in prices. As we
Speaker 3: sit right now. Having said that, one thing I think about,
Speaker 3: David is I've been to the Panama Canal. I've seen it.
Speaker 3: It kind of blew my mind having seen it in
Speaker 3: video and so on and so forth, Like you just
Speaker 3: realized the importance this is in terms of trade. Sue
Speaker 3: has obviously very important, the Red Sea too, the Panama Canal.
Speaker 3: Are you starting to think about a world where maybe
Speaker 3: we don't have access to the Panama Canal because of
Speaker 3: climate change?
Speaker 4: Now, in conversations that I've had with major logistics providers,
Speaker 4: investors and shippers that are that are tied to the
Speaker 4: canal for economic reasons, you know the canal is still
Speaker 4: a very critical part to all of those chains. Uh.
Speaker 4: And you know, the canal can tell you itself that
Speaker 4: they're they're actively looking at various means where they're going
Speaker 4: to ensure that the canal stays open. It is too
Speaker 4: critical of an international trade pathway for for us not
Speaker 4: to continue to maintain.
Speaker 1: We talked Panama Canal, we talked Red csu As Canal.
Speaker 1: What is the other geographical area that we need to
Speaker 1: have our attention to that we're not necessarily talking about, David.
Speaker 4: If I could answer that question, I don't think I'd
Speaker 4: be sitting in this seat.
Speaker 1: But is there anything on your radar right now that
Speaker 1: you know you're starting to see bubble lot that is
Speaker 1: an area of concern, especially with with climate change.
Speaker 4: You know, again, I go back to my original point
Speaker 4: here with these are today's supply chains being so sophisticated
Speaker 4: and so so tight, or you know, a lot of
Speaker 4: shippers are still despite you know, what we went through
Speaker 4: in COVID still want to go back to just in
Speaker 4: time inventories. You know, it is any sort of disruption
Speaker 4: that could that could come to the forefront here, So
Speaker 4: I don't want to spec it could be, but I
Speaker 4: can tell you it could pop up in any place
Speaker 4: around the world.
Speaker 2: David.
Speaker 3: It sounds like though we as consumers have to get
Speaker 3: used to something that shocked us during the pandemic of
Speaker 3: empty shelves, and I feel like I increasingly walk into
Speaker 3: places and shelves are empty. And maybe that's because of
Speaker 3: the just in time inventory. Nobody wants to be stuck
Speaker 3: with excess inventory? Is that a fair assessment? And just
Speaker 3: got about twenty seconds here. Sorry.
Speaker 4: I still believe that the sophistication of our logistics providers
Speaker 4: and the shippers out there will ensure that we won't
Speaker 4: have any stock outs here. So we'll see.
Speaker 3: Yeah, time will tell, right, David, great to check in
Speaker 3: with you. Nice to be talking with someone who's a
Speaker 3: fan of the show, so thank you for that. David Dyker.
Speaker 3: He's Associate partner and shipping practice co leader of at
Speaker 3: mackenzie and Company. Joining us on Zoom from Summit, New Jersey.
Speaker 3: But I do think about supply chains, right, we continue
Speaker 3: to be talking about them post pandemic. How many years
Speaker 3: are we out here? In four years?
Speaker 1: But it's not just pandemic, it's pandemic, climate change, politics,
Speaker 1: it's it's wild.
Speaker 3: Yeah, serious issues. All right, folks, don't go anywhere. I
Speaker 3: got a special treat coming up in just a moment
Speaker 3: right here on Bloomberg Business Week.
Speaker 5: My whole world around domans that one.
Speaker 1: Okay, bear with me here, take a moment and think
Speaker 1: about your life, think about your daily routine and the
Speaker 1: built environment that you interact with, your office, your workspace,
Speaker 1: the roads, the parks, public transit, all of the things
Speaker 1: that are around you, and equally important, what you find
Speaker 1: on the other side of all the doorways that you
Speaker 1: walk through. Maybe it's just me, but these things have
Speaker 1: a huge effect on my life and my wellbeing. So
Speaker 1: we're really interested to talk with our next guest because
Speaker 1: this is their world. Andy Cohen and Diane Hoskins are
Speaker 1: the co CEOs of the privately held global architecture design
Speaker 1: and planning from Gensler. Gensler's got more than fifty locations
Speaker 1: and six thousand employees around the world in the America's
Speaker 1: euro Up, Greater China, Asia, Pacific, and the Middle East.
Speaker 1: They do more than two billion dollars a year in revenue,
Speaker 1: and they count eighty percent of the top fifty Fortune
Speaker 1: five hundred companies as clients. Needless to say, they got
Speaker 1: a good idea about what's going on around the world.
Speaker 1: They're also the co authors of a brand new book
Speaker 1: out today, designed for a radically changing world. Andy, Diane, welcome,
Speaker 1: good to have you here in the Bloomberg Interactive Brokers Studios.
Speaker 1: We're going to get to the book in just a bit,
Speaker 1: but we got a good chunk of time with you guys.
Speaker 1: You have an amazing view on the global economy. Diane,
Speaker 1: just talk to me about how business is right now,
Speaker 1: what you're seeing.
Speaker 5: Hey, Tim, Carol, it's so good to be here. Wow,
Speaker 5: we're seeing that. You know, again, things are moving quickly
Speaker 5: and changing from what we might have seen five years ago,
Speaker 5: and certainly during COVID there's you know, we're in a
Speaker 5: world where you know, new cities are being created I
Speaker 5: won't say overnight, but you know, again at such a
Speaker 5: rapid pace. You know, we were just in India and
Speaker 5: you know, to see the kind of energy and excitement
Speaker 5: goinging on and the transformation that we're part of as
Speaker 5: a design firm in Bangalore. We were just in Mexico
Speaker 5: City hearing a lot about the near shoring and the
Speaker 5: energy that that's bringing to the economy there and obviously,
Speaker 5: excuse me, opportunities in the built environment as well. So
Speaker 5: you know, again, as a global firm, we're part of
Speaker 5: this transformation that is literally happening, you know, around the world.
Speaker 5: We were at COP twenty eight and in Dubai and
Speaker 5: you know, again all of what's happening in the Middle East. So,
Speaker 5: you know the United States, there's amazing things happening that
Speaker 5: hopefully we'll talk about as our cities are you know,
Speaker 5: finding their path. But we're very bullish, well.
Speaker 3: Safe to say we have a sensitivity about cities too,
Speaker 3: and we think it's really important that if you have
Speaker 3: healthy cities, you have healthy countries and healthy policies. Like
Speaker 3: it kind of starts at that level, but I want
Speaker 3: to dig a little bit deeper, Andy, because you guys
Speaker 3: do have this incredible global perspective. Any so that there
Speaker 3: are companies, are you know, cities slowing down on projects
Speaker 3: because of uncertainty about.
Speaker 2: What's to come again, like Diane said, it's where of
Speaker 2: this global perspective. We worked in over one hundred countries
Speaker 2: last year. You know, we're seeing the US right now
Speaker 2: in definitely in the work sector, in the office sector
Speaker 2: definitely slowing down. We're in four sectors in our firm,
Speaker 2: we have work, lifestyle, what we call cities, and health
Speaker 2: and wellness. We're seeing our work sector definitely being hit
Speaker 2: right now with the slowdown in office. Although we're doing
Speaker 2: a ton of office to REZI residential conversions.
Speaker 3: Right now, are you really a ton of those right
Speaker 3: like old office buildings.
Speaker 2: Older office buildings. What we're seeing is because office buildings
Speaker 2: right now they're only fifty percent occupied. We're seeing this
Speaker 2: unbelievable flight to quality that's going on right now where
Speaker 2: tenants really only want to be in highly amenditized quality
Speaker 2: buildings that are brand new or newer, and the older
Speaker 2: building stock millions upon millions of square feet what we
Speaker 2: call B and C product B and C buildings are
Speaker 2: really really problematic. So we have done we created an
Speaker 2: algorithm recently that we're able to study entire cities or
Speaker 2: whole portfolios of buildings and analyze them quickly to see
Speaker 2: which buildings can be converted from office to REZI and
Speaker 2: about twenty five percent of the building stock in the
Speaker 2: United States and around the globe can be converted.
Speaker 1: Diana Howe, I mean we've heard for years since the
Speaker 1: pandemic that oh, it's just too expensive to convert on
Speaker 1: a large scale old office buildings into housing. I mean,
Speaker 1: think about it from the perspective of the plumbing, and
Speaker 1: there's some lack of windows. I mean, how do you
Speaker 1: do this efficiently? Is it something that is realistic to
Speaker 1: do to offices that aren't used?
Speaker 5: Yeah, as Andy said, we've created a tool where we
Speaker 5: can answer that question really quickly.
Speaker 1: So some buildings, it works in some buildings.
Speaker 5: Yeah, what's in that tool?
Speaker 3: Yeah?
Speaker 5: What is it? No, it's you know, we've put together,
Speaker 5: basically a way of bringing all the analytics that would
Speaker 5: probably take you know, a pretty extended period of time
Speaker 5: to study, into a very concise set of metrics that
Speaker 5: predict the viability of an office building becoming residential. So
Speaker 5: the window to the core, you know that dimension. Obviously,
Speaker 5: super deep apartments are not going to work. You know,
Speaker 5: the Florida floor height again, you know, there are ideal
Speaker 5: Florida floor heights for residential that are different in many
Speaker 5: cases than office. The loading dock, by the way, makes
Speaker 5: a huge difference. What's going on with you know, the
Speaker 5: column base. So all of this basically we do a
Speaker 5: scoring and literally, if it's eighty or above, it's viable.
Speaker 5: If it's below, maybe not so much.
Speaker 3: And you said that algorithm says twenty five percent can
Speaker 3: be reworked, which makes me think that other seventy five
Speaker 3: percent do you think ultimately it's just have to be
Speaker 3: either torn down or done away with.
Speaker 2: Well, we're doing a lot of adaptive reuses right now
Speaker 2: to other types of uses. But definitely the reason why
Speaker 2: we're studying residential is such as short as a residential
Speaker 2: and so we need more residential and this is a
Speaker 2: sustainable way of doing it. Instead of ripping a building down,
Speaker 2: we can reuse the building, which is so much better
Speaker 2: for the environment. I should also add, Diana, I just
Speaker 2: went this morning. We saw a project called a Pearl
Speaker 2: House and it's here in Lower Manhattan. It's the first
Speaker 2: unbelievable successful conversion from office to REZI and it was
Speaker 2: a building built in nineteen seventy and we were able
Speaker 2: to literally turn it inside out and turn it from
Speaker 2: a standard office building into residential and we think it's
Speaker 2: going to be a home run here in New York.
Speaker 1: It's really cool to hear about this because again again
Speaker 1: it's like we've heard about we've been talking about this
Speaker 1: for years, and it's like it's good to finally see
Speaker 1: this happening. So, Diane, how susceptible is Gensler to blips
Speaker 1: in the economy? Because the reason, the reason I ask
Speaker 1: it's and I don't think it's an obvious answer, is
Speaker 1: because yes, a big portion of your revenue does come
Speaker 1: from offices, but also a lot comes from municipal municipalities.
Speaker 1: You do airports, you do courthouse renovations, parliament. So so
Speaker 1: how much of that is dependent on you know, fluctuations
Speaker 1: within the global economy.
Speaker 5: Yeah, you know, over the last twenty years where we've
Speaker 5: been co CEOs, we've really focused on diversification and really
Speaker 5: looking at all of the kind of a three sixty
Speaker 5: from as Andy said, sort of this work sector which
Speaker 5: we've been talking about, that's the office buildings and then
Speaker 5: the spaces inside those buildings. But even that is like
Speaker 5: you know, you've got tech, and you've got financial services,
Speaker 5: and you know, professional services. But you know, right now
Speaker 5: one of our fastest growing practice areas is actually aviation.
Speaker 5: And you know, you look at the stimulus, the you know,
Speaker 5: infrastructure bill that got passed not that long ago. You're
Speaker 5: starting to see amazing project going on all over the
Speaker 5: US in terms of these you know, much needed new terminals.
Speaker 5: We all go, you know, overseas and see great terminals,
Speaker 5: but we're starting to see some amazing opportunities here in
Speaker 5: the US. So you know, again that diversification, whether it's
Speaker 5: another massive growth area for US is sports stadiums and
Speaker 5: you know again we all just saw the Super Bowl,
Speaker 5: but you know it's so important in our communities to
Speaker 5: you know, entertainment in sports as well, so you know,
Speaker 5: the and let's say hospitality. I mean again, since COVID,
Speaker 5: we all know, the hospitality sector has been just on
Speaker 5: a rocket and that reflects also back into the work
Speaker 5: that we're doing.
Speaker 3: Let's get back to our guest because still with us
Speaker 3: as Andy Cohen and Diane Hoskins, co CEOs of the
Speaker 3: privately held global architecture design and planning firm Against there.
Speaker 3: They've got a new book out. It's called Design for
Speaker 3: a Radically Changing World. Tim and I throughout the day
Speaker 3: have been just kind of having some fun even with
Speaker 3: the titles. I want to go right to one called
Speaker 3: social and racial justice because I think about how we
Speaker 3: have done in general housing for decades and kind of
Speaker 3: separating lower income and then developers maybe they throw a
Speaker 3: few units like how do we do and Diane, let
Speaker 3: me start with you, how do we do this better?
Speaker 5: Yeah? You know, it's about equity, right, for so many years,
Speaker 5: you know, and in so many of our cities there
Speaker 5: are communities that just haven't had the investment. And so
Speaker 5: you know, at Gensler. We're really being mindful about seeking
Speaker 5: out opportunities to work on projects that are helping to
Speaker 5: create more livable streets, more green space, you know, helping
Speaker 5: to create schools that are you know, uh, exciting children
Speaker 5: to want to learn and grow, but.
Speaker 3: For not just one member of the social strata.
Speaker 5: Correct, yeah, exactly, for every for everyone, for everyone, And
Speaker 5: it's it is about equity and how do we bring
Speaker 5: that through design?
Speaker 1: And you and Diane argue that design can be a
Speaker 1: more powerful tool than policy when it comes to changing
Speaker 1: cities for the better.
Speaker 2: Explain, well, sure, I think first let's talk about the context.
Speaker 2: For the first time in human history, more people live
Speaker 2: in cities than not fifty five percent of the world's
Speaker 2: population lives in cities, and by twenty fifty seventy percent
Speaker 2: of the world's populations lives in cities. So the design
Speaker 2: of cities are obviously going to be really important for
Speaker 2: the global population. And we believe and this has to
Speaker 2: do with policies moving forward. We believe in the philosophy
Speaker 2: and through our research of a twenty minute city and
Speaker 2: the twenty minute city, and we learned this through COVID,
Speaker 2: is that everything is walkable everything you need in life.
Speaker 2: Every amenity that you need in life is walkable grocery stores, restaurants, retail, healthcare.
Speaker 2: Education is older than a walkable district. Now in a
Speaker 2: small city that would be twenty minutes. In a city
Speaker 2: like New York, you might have you have multiple twenty
Speaker 2: minute cities. But this philosophy of acxis and amenities, even
Speaker 2: having to do with racial justice, is the idea that
Speaker 2: you have these amenities that your fingertips and about that
Speaker 2: design can make a difference in these in our world.
Speaker 3: How do you make sure it's affordable amenities that are
Speaker 3: within everybody's reach, because that maybe is not always I
Speaker 3: don't know if that's within design you know capabilities, or
Speaker 3: is it like how do you work that in as well.
Speaker 5: Again, at the end of the day, design isn't about
Speaker 5: the price tag. It's about the decisions that we make
Speaker 5: as designers. Where to put, you know, the green space,
Speaker 5: where to put you know, instead of a wall, maybe
Speaker 5: it's it's shrubbery, or maybe it's the way that you
Speaker 5: move from one space to the other instead of something
Speaker 5: that's very rigid and kind of onerous. You know, it's
Speaker 5: about experience and you know at the end of the day.
Speaker 5: You know, design is about a you know, a thousand
Speaker 5: choices we make with the design problem. And again I
Speaker 5: go back to it's what we focus on, you know,
Speaker 5: it's what we focus on. Design is for every neighborhood
Speaker 5: in a city.
Speaker 3: But our client's all sensitive to that. I mean, I
Speaker 3: do always wonder, especially if it's a tougher economic environment,
Speaker 3: right Tim, and I constantly here we are going through
Speaker 3: earning still and it's you know, the bottom line, and
Speaker 3: you know what gets a stock moving, it's a buyback.
Speaker 3: Sometimes there're a dividend or cost cuts in these you know,
Speaker 3: thank you, Mark Zuckerberg. The year of efficiency continues for many.
Speaker 3: So Andy, come on in on this, Like when you
Speaker 3: guys are working on a project, how important is it
Speaker 3: that it's access for most How do you incorporate climate
Speaker 3: change aspects? How do you do it? Make it greener,
Speaker 3: make it better for our clients.
Speaker 2: They're looking for it all they want to make really
Speaker 2: they want to make sure that it's equitable, but they
Speaker 2: also want to make sure that it's financial financial, and
Speaker 2: so we're constantly balancing the two. And I'll talk about
Speaker 2: housing for a second. We do a lot of housing
Speaker 2: and much of the housing today about every project ten
Speaker 2: to twenty percent is affordable housing that's being factored into
Speaker 2: the performance.
Speaker 3: Is that more than has been in the past.
Speaker 2: Absolutely, Okay, most projects residential products would have zero affordable
Speaker 2: and now based on the demographics of the community, developers
Speaker 2: are building that into their performer and make it work.
Speaker 2: And that gives us the ability to create you know,
Speaker 2: equality and design to make sure that designs for everyone.
Speaker 1: Diane Andy mentioned climate change and curious how you design
Speaker 1: in a world where extreme weather events are happening more
Speaker 1: frequently beyond just putting everything on stilts, because that's certainly
Speaker 1: one way to do it, But that I mean, is
Speaker 1: that the is that like the only option for low
Speaker 1: lying environments or even Lower Manhattan or Red Hook in Brooklyn.
Speaker 3: Do you not develop?
Speaker 5: Well, Look, you put your finger on probably the most
Speaker 5: critical issue of our time, which is climate change, and
Speaker 5: this is impacting all aspects of the built environment. You know,
Speaker 5: percent of global emissions and CO two are from buildings.
Speaker 5: I mean, it's a huge issue. It's both how we
Speaker 5: make the buildings, the concrete and steel and all of that.
Speaker 5: So this whole idea of you know, adaptive reuse that's
Speaker 5: that's really literally, we can cut in half the amount
Speaker 5: of emissions from our buildings if we can reuse buildings,
Speaker 5: so that's a big piece. And then of course creating
Speaker 5: efficiency in our buildings, so you know, that's one piece
Speaker 5: of it. And you're bringing up resiliency. And the point
Speaker 5: there is that we have to think about the climate
Speaker 5: not just this year and next year, but in the
Speaker 5: next fifty years. And so we need to create the
Speaker 5: systems and the design, the orientation of the building that
Speaker 5: is going to allow that building to be able to
Speaker 5: be usable and valuable into the future.
Speaker 3: I love that this idea. Andy, come on, I got
Speaker 3: a thirty seconds here.
Speaker 2: You know, climate change is the moral and business imperative
Speaker 2: of our lifetimes. As Diane said, forty percent most people
Speaker 2: think that autobiles are in industry are the largest. It's
Speaker 2: buildings that produce the most amount of CO two. We
Speaker 2: have put in place that by twenty thirty all of
Speaker 2: our buildings will be net zero, and that's really really important.
Speaker 2: That's the focus for us. And I'll give you an
Speaker 2: example of one quick project. San Francisco Airport, the first
Speaker 2: net zero zero waste airport in the United States. So
Speaker 2: even publicly like you were mentioning Tim, it's coming that
Speaker 2: municipality is a pushing for net zero.
Speaker 3: It's a nice thing to hear, an upb thing to hear,
Speaker 3: because it does feel like sometimes it's a tough climb,
Speaker 3: especially when it comes to climate change. Andy Cohen Diane Hoskins,
Speaker 3: co CEOs at Gensler their new book. Check it out,
Speaker 3: Design for a Radically Changing World. It'll definitely get you
Speaker 3: thinking when it comes to your neighborhood and just developments
Speaker 3: in general. This is Bloomberg