WEBVTT - Colliers Intl. U.S. CEO on Commercial Real Estate

0:00:00.160 --> 0:00:04.240
<v Speaker 1>This is Bloomberg Business Week with Carol Messer from Bloomberg

0:00:04.360 --> 0:00:06.880
<v Speaker 1>Radio US no new home sales. We talked about this

0:00:06.880 --> 0:00:09.600
<v Speaker 1>with Mike McKee. Rising into Scember for the first time

0:00:09.600 --> 0:00:12.280
<v Speaker 1>in five months. It's capping the best year since oh six,

0:00:12.320 --> 0:00:15.680
<v Speaker 1>signaling that record low mortgage rates continue to drive demand

0:00:15.680 --> 0:00:17.480
<v Speaker 1>for a sector that's really been a bright spot in

0:00:17.520 --> 0:00:20.560
<v Speaker 1>the US economy. Saw another story on the Bloomberg about

0:00:20.600 --> 0:00:23.320
<v Speaker 1>Hampton's home sales are at a record in the fourth quarter.

0:00:23.360 --> 0:00:26.239
<v Speaker 1>People continuing to leave New York City head out to

0:00:26.239 --> 0:00:31.320
<v Speaker 1>the Hampton's. Meantime, even as the pack of Chapter eleven

0:00:31.320 --> 0:00:34.519
<v Speaker 1>filings in commercial real estate have slowed amid easy access

0:00:34.520 --> 0:00:37.159
<v Speaker 1>to fund some are still telling us that the real

0:00:37.240 --> 0:00:40.760
<v Speaker 1>estate industry is quote facing an existential crisis of what's next.

0:00:41.040 --> 0:00:43.040
<v Speaker 1>So let's see what Gil Barack has to say. He

0:00:43.159 --> 0:00:45.920
<v Speaker 1>is the U S Presidency of Colliers International. He is

0:00:46.000 --> 0:00:48.280
<v Speaker 1>with us on the phone from Los Angeles. Gil looks

0:00:48.360 --> 0:00:51.239
<v Speaker 1>so nice to have you here. How are you and

0:00:51.840 --> 0:00:54.160
<v Speaker 1>how is your world and how does it compare from

0:00:54.280 --> 0:00:57.320
<v Speaker 1>kind of what we saw over the last year. I

0:00:57.480 --> 0:01:00.400
<v Speaker 1>tell nice to talk with you again. Yeah, Look, I

0:01:00.440 --> 0:01:03.360
<v Speaker 1>think we're doing fine. It's been a long year for

0:01:03.400 --> 0:01:06.959
<v Speaker 1>all of us, or along eleven months um, and I

0:01:07.000 --> 0:01:09.960
<v Speaker 1>think that you know, sort of where we are. We're

0:01:10.040 --> 0:01:12.840
<v Speaker 1>closer to the end than the beginning. That's the good news, right.

0:01:13.040 --> 0:01:16.400
<v Speaker 1>The vaccines are rolling slowly, but they're rolling, uh. And

0:01:16.440 --> 0:01:21.240
<v Speaker 1>I think that most people are quite encouraged by that,

0:01:21.400 --> 0:01:24.560
<v Speaker 1>and encouraged about the fact that we should be returned

0:01:24.640 --> 0:01:27.600
<v Speaker 1>to some sense of normalcy by the middle of the

0:01:27.680 --> 0:01:29.880
<v Speaker 1>year and into the back half of the year. And

0:01:29.920 --> 0:01:32.720
<v Speaker 1>so things are looking up. And they didn't end as

0:01:32.760 --> 0:01:35.399
<v Speaker 1>badly as some might have predicted. Sort of when the

0:01:35.400 --> 0:01:37.840
<v Speaker 1>crisis hit us in March and April last year, there

0:01:37.920 --> 0:01:42.880
<v Speaker 1>was activity, uh, and there was some sense of optimism,

0:01:43.000 --> 0:01:45.360
<v Speaker 1>you know again towards the end of last year. Clearly

0:01:45.400 --> 0:01:47.760
<v Speaker 1>we didn't perform last year like we did in two

0:01:47.840 --> 0:01:51.280
<v Speaker 1>thousand nineteen, but things did gradually start to get better

0:01:51.280 --> 0:01:53.360
<v Speaker 1>and that trend seems to be continuing. Is that true

0:01:53.360 --> 0:01:55.280
<v Speaker 1>around the world? I mean, I knew you focus on

0:01:55.440 --> 0:01:58.960
<v Speaker 1>US properties, but you guys are international. Is it kind

0:01:59.000 --> 0:02:01.200
<v Speaker 1>of the same story everywhere? It depends on the market.

0:02:01.200 --> 0:02:04.760
<v Speaker 1>I mean, I know real estate is location, location, location,

0:02:04.760 --> 0:02:07.960
<v Speaker 1>and it's a very local story. But I'm just curious. Yeah,

0:02:07.960 --> 0:02:11.399
<v Speaker 1>I know everything I've heard and read from my colleagues,

0:02:11.480 --> 0:02:14.160
<v Speaker 1>you know, across the ponds, UM is that they're feeling

0:02:14.240 --> 0:02:17.560
<v Speaker 1>sort of generally the same way. There is enthusiasm, activity

0:02:17.639 --> 0:02:22.080
<v Speaker 1>is picking up, um and UM. You know, their their pockets. Obviously,

0:02:22.120 --> 0:02:25.200
<v Speaker 1>there are things within the industry, things like industrial, which

0:02:25.240 --> 0:02:27.600
<v Speaker 1>I think is fairly common now than anybody that follows

0:02:27.639 --> 0:02:31.120
<v Speaker 1>the space. Industrial real estate is having. You know, COVID

0:02:31.160 --> 0:02:33.440
<v Speaker 1>has been a silver lining for them, right It's it's

0:02:33.440 --> 0:02:36.200
<v Speaker 1>been because of e commerce and you see this globally,

0:02:36.280 --> 0:02:39.000
<v Speaker 1>the demand for that type of real estate has really

0:02:39.600 --> 0:02:42.720
<v Speaker 1>been the opposite of most other asset types because of

0:02:42.800 --> 0:02:45.880
<v Speaker 1>the e commist growth. Are you seeing any bankruptcies with

0:02:45.919 --> 0:02:48.040
<v Speaker 1>any of your properties? Because I'm trying to get my

0:02:48.040 --> 0:02:50.120
<v Speaker 1>head around that, because I think that was the story

0:02:50.200 --> 0:02:54.440
<v Speaker 1>we thought was coming was coming was coming in uh

0:02:54.480 --> 0:02:59.040
<v Speaker 1>and and expectations as restaurants shut down, as retail shut down,

0:03:00.160 --> 0:03:03.519
<v Speaker 1>and I'm just curious, are you guys facing some bankruptcies

0:03:03.520 --> 0:03:05.239
<v Speaker 1>with any of your properties or are you seeing any

0:03:05.240 --> 0:03:09.040
<v Speaker 1>of that? We really it's really diminimous. Um. There was

0:03:09.080 --> 0:03:11.440
<v Speaker 1>a lot of talk and this is not dissimilar to

0:03:11.480 --> 0:03:13.600
<v Speaker 1>two thousand and eight two thousand nine that the stress

0:03:13.639 --> 0:03:16.880
<v Speaker 1>debt is coming, the the special servicing needs are coming,

0:03:17.200 --> 0:03:18.959
<v Speaker 1>and it's going to be a wave, and that wave

0:03:19.040 --> 0:03:23.119
<v Speaker 1>didn't happen. Yes, they're clearly there are properties that are distressed.

0:03:23.120 --> 0:03:26.760
<v Speaker 1>There are there are problematic situations. They are higher than

0:03:26.880 --> 0:03:29.640
<v Speaker 1>what they are they normally are in normal times. But

0:03:29.760 --> 0:03:32.480
<v Speaker 1>it hasn't been at least from what we've seen, it

0:03:32.560 --> 0:03:36.000
<v Speaker 1>hasn't been a huge wave yet. Um. I don't know

0:03:36.080 --> 0:03:39.120
<v Speaker 1>what the next few months hold as stimulus checks are

0:03:39.120 --> 0:03:42.600
<v Speaker 1>coming out again, but whether you know, if, if if

0:03:42.640 --> 0:03:46.080
<v Speaker 1>we don't see some improvement in terms of of of

0:03:46.480 --> 0:03:53.000
<v Speaker 1>stimulus and in terms of the crisis receding through vaccination, right,

0:03:53.040 --> 0:03:55.000
<v Speaker 1>then the longer it goes on, the harder it is

0:03:55.000 --> 0:03:57.600
<v Speaker 1>going to be for people to keep going. But so

0:03:57.640 --> 0:04:00.840
<v Speaker 1>far it's been manageable, easy for me to right if

0:04:00.880 --> 0:04:04.320
<v Speaker 1>it's not, if I haven't been directly impacted, Well, I mean,

0:04:04.680 --> 0:04:06.680
<v Speaker 1>does that change? Does that any of that? I mean

0:04:06.720 --> 0:04:08.880
<v Speaker 1>you say that you see that we're closer to the

0:04:08.960 --> 0:04:10.400
<v Speaker 1>end than we are at the beginning, But I do

0:04:10.520 --> 0:04:13.200
<v Speaker 1>wonder do you think that there will still be some

0:04:13.320 --> 0:04:17.120
<v Speaker 1>fallout of properties just because the world is changing When

0:04:17.120 --> 0:04:19.800
<v Speaker 1>it comes to real estate, I think they will be

0:04:19.880 --> 0:04:22.120
<v Speaker 1>and I think it would be you know, remiss of

0:04:22.120 --> 0:04:23.840
<v Speaker 1>me to say that, or putting my head in the

0:04:23.960 --> 0:04:26.160
<v Speaker 1>sand if I didn't say. Look, I think the way

0:04:26.200 --> 0:04:29.400
<v Speaker 1>that for example, office, that's the big elephant in the room, right,

0:04:29.400 --> 0:04:32.800
<v Speaker 1>How is office going to come back and in what fashion?

0:04:32.880 --> 0:04:35.640
<v Speaker 1>And how is demand going to be? Well, it's it's

0:04:35.680 --> 0:04:38.200
<v Speaker 1>it's a mixed bag. You see some new developments that

0:04:38.240 --> 0:04:41.520
<v Speaker 1>are fifty and sixty and sev already pre leased, and

0:04:41.520 --> 0:04:44.360
<v Speaker 1>I think it depends on where they are and what

0:04:44.480 --> 0:04:46.919
<v Speaker 1>type of um, you know, office space you have. So

0:04:47.120 --> 0:04:50.440
<v Speaker 1>new is generally good and popular. Old is probably going

0:04:50.480 --> 0:04:53.640
<v Speaker 1>to struggle more, um you know, because we will work

0:04:53.680 --> 0:04:55.559
<v Speaker 1>a bit differently, and I think we will see people

0:04:55.600 --> 0:04:59.719
<v Speaker 1>working more remotely than they have historically. And the trend

0:04:59.720 --> 0:05:02.719
<v Speaker 1>will be get downward trend in demand, uh, you know,

0:05:02.760 --> 0:05:05.360
<v Speaker 1>offset by when the economy recovers and stoughts to grow

0:05:05.400 --> 0:05:07.880
<v Speaker 1>again and there's more demands for space. So there are

0:05:07.920 --> 0:05:11.039
<v Speaker 1>going to be some lasting impacts, particularly I think in

0:05:11.080 --> 0:05:15.440
<v Speaker 1>the office arena. So Gil, let me ask you, um offices,

0:05:15.600 --> 0:05:18.240
<v Speaker 1>wide open spaces, right, that has just been the thing

0:05:18.279 --> 0:05:20.640
<v Speaker 1>at Bloomberg. It's been in our culture from day one,

0:05:20.680 --> 0:05:23.920
<v Speaker 1>this whole idea of open spaces and no real offices, um,

0:05:23.960 --> 0:05:25.919
<v Speaker 1>and then we start really take off with all the

0:05:25.960 --> 0:05:28.000
<v Speaker 1>tech companies. Right, it was the cool thing, the right

0:05:28.040 --> 0:05:30.960
<v Speaker 1>thing to do, and everybody got away from offices. Will

0:05:31.000 --> 0:05:35.280
<v Speaker 1>we stay with it? Do you think that changes significantly? Yes,

0:05:35.520 --> 0:05:39.000
<v Speaker 1>in the short term, conventional wisdom would suggest that that's

0:05:39.040 --> 0:05:41.920
<v Speaker 1>probably not a good idea to be guest sharing, right,

0:05:41.960 --> 0:05:44.320
<v Speaker 1>and to be so close to each other without some

0:05:44.400 --> 0:05:47.560
<v Speaker 1>kind of plexiglass separation. I think it remains to be

0:05:47.640 --> 0:05:50.640
<v Speaker 1>seen because if you reconfigure offices, there is a capital

0:05:50.680 --> 0:05:53.359
<v Speaker 1>cost to doing that, and I think that in the

0:05:53.400 --> 0:05:57.080
<v Speaker 1>short term anyway, my own sense is we can manage

0:05:57.080 --> 0:05:59.520
<v Speaker 1>it a different way. So, for example, have half the

0:05:59.560 --> 0:06:02.039
<v Speaker 1>employee has come in on Monday and Wednesday and the

0:06:02.040 --> 0:06:05.240
<v Speaker 1>other half on Tuesday and Thursday. A lot of people

0:06:05.760 --> 0:06:08.720
<v Speaker 1>want to work remotely a little bit anyway after the pandemic,

0:06:09.200 --> 0:06:10.960
<v Speaker 1>and that's sort of you know, and a lot of

0:06:10.960 --> 0:06:14.440
<v Speaker 1>people can work remotely quite effectively. So I think we're

0:06:14.440 --> 0:06:16.320
<v Speaker 1>going to come back in stages, and it sort of

0:06:16.360 --> 0:06:18.880
<v Speaker 1>does remain to be seeing what the long term holds.

0:06:19.600 --> 0:06:21.279
<v Speaker 1>I think we'll get back to it. I think there

0:06:21.360 --> 0:06:25.159
<v Speaker 1>is a camaraderie and a productivity to having open offices.

0:06:25.200 --> 0:06:26.840
<v Speaker 1>I think people like it and they have gotten used

0:06:26.839 --> 0:06:29.240
<v Speaker 1>to it, and I weren't for the pandemic. Uh, you know,

0:06:29.320 --> 0:06:31.360
<v Speaker 1>nobody would think twice about it. So there'll be some

0:06:31.839 --> 0:06:35.200
<v Speaker 1>I think, some short term, short to medium term restraint

0:06:35.279 --> 0:06:37.679
<v Speaker 1>on that type of setup. But I think over time,

0:06:37.760 --> 0:06:40.240
<v Speaker 1>we you know, we can evolve back to it. Particularly

0:06:40.320 --> 0:06:45.680
<v Speaker 1>the vaccines are effective. All right, So what about retail.

0:06:45.880 --> 0:06:47.640
<v Speaker 1>We just did a story about them all out in

0:06:47.720 --> 0:06:50.520
<v Speaker 1>Vegas and it's not a new story deal, right, like

0:06:50.560 --> 0:06:52.880
<v Speaker 1>we've been talking about it for a year. We're overstored,

0:06:53.200 --> 0:06:56.400
<v Speaker 1>We're overmauled. Uh. And I do feel like mall developers

0:06:56.440 --> 0:06:58.560
<v Speaker 1>are getting a little bit more strategic in terms of

0:06:58.560 --> 0:07:01.200
<v Speaker 1>where they put them all. So what's what what do

0:07:01.240 --> 0:07:04.239
<v Speaker 1>we continue to see on that front? Yeah? So I

0:07:04.279 --> 0:07:09.880
<v Speaker 1>think you know, retail is um It has obviously suffered

0:07:10.280 --> 0:07:12.560
<v Speaker 1>and that and and it has for us, as you say,

0:07:13.000 --> 0:07:16.560
<v Speaker 1>and the pandemic obviously accelerated and deepened that suffering, if

0:07:16.560 --> 0:07:21.400
<v Speaker 1>you will. But I think that malls that offer an experience,

0:07:21.520 --> 0:07:23.440
<v Speaker 1>and it used to be that you think of that, Okay,

0:07:23.440 --> 0:07:26.160
<v Speaker 1>that has to be an outdoor mall. Not necessarily so,

0:07:26.320 --> 0:07:28.800
<v Speaker 1>because you have some of these new malls that have

0:07:28.840 --> 0:07:31.840
<v Speaker 1>been developed unfortunately maybe not quite gotten off the ground

0:07:31.880 --> 0:07:34.840
<v Speaker 1>because of the pandemic. But they have attractions, whether that's

0:07:34.920 --> 0:07:39.200
<v Speaker 1>roller coasters or attractions to kids or whatever it is. Uh,

0:07:39.280 --> 0:07:42.000
<v Speaker 1>those draw crowds and of course then they shop right

0:07:42.040 --> 0:07:44.240
<v Speaker 1>And so I think if it's a new mall, if

0:07:44.240 --> 0:07:46.520
<v Speaker 1>it's an exciting mall, if it's in a good location,

0:07:47.280 --> 0:07:50.239
<v Speaker 1>maybe good restaurants when we get back to normal, those

0:07:50.280 --> 0:07:53.160
<v Speaker 1>I think are ultimately going to be fine. The malls

0:07:53.160 --> 0:07:55.480
<v Speaker 1>of the type you're talking about in somewhat of a

0:07:55.520 --> 0:07:58.200
<v Speaker 1>remote location. It's not entirely remote because a lot of

0:07:58.200 --> 0:08:01.360
<v Speaker 1>cards as a lot of card plastic and outlets. People

0:08:01.360 --> 0:08:03.720
<v Speaker 1>would stop on the way to Vegas. It makes sense.

0:08:03.760 --> 0:08:07.679
<v Speaker 1>But they're not surviving very well in the pandemic. Maybe

0:08:07.680 --> 0:08:09.760
<v Speaker 1>they come back, or maybe some of them come back,

0:08:09.800 --> 0:08:12.000
<v Speaker 1>but then who ever owns them sort of have to

0:08:12.040 --> 0:08:14.200
<v Speaker 1>have the wherewith all the capital to keep them going

0:08:14.600 --> 0:08:17.400
<v Speaker 1>until things turn around. So that's why they're sort of

0:08:17.440 --> 0:08:20.120
<v Speaker 1>falling a bit by the wayside, and they may have

0:08:20.280 --> 0:08:22.960
<v Speaker 1>to be repurposed. Now you say, well, what's that repurposing

0:08:23.600 --> 0:08:26.720
<v Speaker 1>you know, I don't know, but I do know that

0:08:26.800 --> 0:08:31.080
<v Speaker 1>developers and owners are are are creative and who ever

0:08:31.120 --> 0:08:33.520
<v Speaker 1>paid a million five to five for that mall has

0:08:33.600 --> 0:08:37.000
<v Speaker 1>some idea of how they might repurpose it. Uh, you know,

0:08:37.040 --> 0:08:39.760
<v Speaker 1>to get a return on that investment. Well, when you

0:08:39.840 --> 0:08:42.439
<v Speaker 1>look at properties that you want to be involved in,

0:08:42.679 --> 0:08:47.160
<v Speaker 1>what's changed? How have you been impacted by the last year? Look,

0:08:47.200 --> 0:08:50.960
<v Speaker 1>I think you know the not not You've got to

0:08:51.000 --> 0:08:53.920
<v Speaker 1>be thoughtful about you know, how you make investments, and

0:08:54.000 --> 0:08:56.400
<v Speaker 1>it's the truth about the stock market or anything else

0:08:56.440 --> 0:08:58.920
<v Speaker 1>that you're going to invest in. Right, So you you've

0:08:58.960 --> 0:09:01.440
<v Speaker 1>got to look at where the trains are going. Um,

0:09:01.480 --> 0:09:03.440
<v Speaker 1>and that's what we would advise our clients. Where are

0:09:03.440 --> 0:09:06.960
<v Speaker 1>the trends going and what's the pricing? And some clients,

0:09:07.000 --> 0:09:09.120
<v Speaker 1>you know, it has to do with their their risk, right,

0:09:09.160 --> 0:09:12.440
<v Speaker 1>their risk profile and how risk averse they are. Uh,

0:09:12.600 --> 0:09:16.720
<v Speaker 1>somebody's buying assets for a cheap price or cheaper price

0:09:16.800 --> 0:09:20.240
<v Speaker 1>because somebody else is concerned about the future of that asset,

0:09:20.600 --> 0:09:23.360
<v Speaker 1>and there'll be winners and losers, is what's going to happen. Right.

0:09:23.400 --> 0:09:26.240
<v Speaker 1>But if you're you know, if you're a conservative investor,

0:09:27.120 --> 0:09:30.120
<v Speaker 1>you might Right now, you might be investing in places

0:09:30.200 --> 0:09:34.120
<v Speaker 1>and thinking about places that are the next the next

0:09:34.160 --> 0:09:37.840
<v Speaker 1>industrial boom right Uh, where Eventually we're running out of

0:09:37.840 --> 0:09:40.640
<v Speaker 1>space in the traditional industrial hubs. So where's the next

0:09:40.640 --> 0:09:44.360
<v Speaker 1>best place? Because that's here to stay. I believe that ecomistration, it'll, it'll,

0:09:44.720 --> 0:09:46.640
<v Speaker 1>growth will slow, but it's here to stay. And if

0:09:46.679 --> 0:09:49.520
<v Speaker 1>you're conservative, pretty good place to put your money. Where

0:09:49.559 --> 0:09:52.880
<v Speaker 1>do you think the next industrial hub will be? Oh?

0:09:53.320 --> 0:09:57.920
<v Speaker 1>I hadn't anticipated that question. I don't want to answer

0:09:57.960 --> 0:09:59.720
<v Speaker 1>it in a in a milk toast kind of way,

0:09:59.720 --> 0:10:02.680
<v Speaker 1>but it's got to be where there's where there's access

0:10:02.720 --> 0:10:06.520
<v Speaker 1>to freeways and access to ports, and so I there's

0:10:06.640 --> 0:10:10.120
<v Speaker 1>you know you are. Those types of hubs are constrained

0:10:10.120 --> 0:10:14.120
<v Speaker 1>by geography. Obviously, the big ones are the big ports

0:10:14.120 --> 0:10:18.880
<v Speaker 1>cities Los Angeles, Long Beach, San Francisco to some degree. Uh,

0:10:18.960 --> 0:10:20.640
<v Speaker 1>you know that you've got them obviously on the East coast.

0:10:20.679 --> 0:10:23.440
<v Speaker 1>You've got it in Texas. So I think you're what

0:10:23.480 --> 0:10:26.120
<v Speaker 1>we're gonna find. I think is expansion close to where

0:10:26.160 --> 0:10:28.880
<v Speaker 1>they are, But maybe you're gonna have half an hour drive,

0:10:28.920 --> 0:10:31.760
<v Speaker 1>but a very manageable drive to the next top. I

0:10:31.840 --> 0:10:33.760
<v Speaker 1>can't go into the middle of the country. It doesn't

0:10:33.960 --> 0:10:36.680
<v Speaker 1>doesn't logistically work right, Hey, what do you make of

0:10:37.240 --> 0:10:40.880
<v Speaker 1>We've did so many stories about people moving to Austin.

0:10:40.880 --> 0:10:44.000
<v Speaker 1>I was just having a conversation with somebody the other day,

0:10:44.080 --> 0:10:47.520
<v Speaker 1>or moving south and whether it's Elon Musk or Oracle

0:10:47.640 --> 0:10:52.439
<v Speaker 1>to Austin, whether it's increasingly financial firms to South Miami.

0:10:52.720 --> 0:10:56.320
<v Speaker 1>So are those real? They are real? I mean there's

0:10:56.360 --> 0:10:59.600
<v Speaker 1>definitely a trend. You do get some firms saying the

0:10:59.679 --> 0:11:02.400
<v Speaker 1>count right, were worth sticking it out in New York City?

0:11:03.000 --> 0:11:05.199
<v Speaker 1>Um right? I think black Crowk was one who came

0:11:05.200 --> 0:11:07.400
<v Speaker 1>out and said that, and there've been a handful of others.

0:11:07.720 --> 0:11:09.720
<v Speaker 1>It is real, and it stands to reason. Right, if

0:11:09.720 --> 0:11:13.240
<v Speaker 1>you can work remotely and we we currently are um

0:11:13.600 --> 0:11:16.320
<v Speaker 1>many of us who have you know, office jobs and

0:11:16.360 --> 0:11:19.400
<v Speaker 1>it's been effective, then you can move to cheaper locations

0:11:19.440 --> 0:11:21.880
<v Speaker 1>now to catch of course, and people don't talk about

0:11:21.880 --> 0:11:24.080
<v Speaker 1>this as much as a number of companies that have said,

0:11:24.280 --> 0:11:26.680
<v Speaker 1>you can work wherever you want, but by the way,

0:11:26.720 --> 0:11:29.600
<v Speaker 1>we are going to change your compensation to match the

0:11:29.640 --> 0:11:32.679
<v Speaker 1>cost of living. And then the question becomes in an

0:11:32.679 --> 0:11:34.640
<v Speaker 1>Austin if it does get an influx of people and

0:11:34.679 --> 0:11:36.880
<v Speaker 1>for yours, people have gone to Austin, but now in

0:11:36.920 --> 0:11:39.199
<v Speaker 1>a bigger way. Right, is the cost of living going

0:11:39.240 --> 0:11:41.760
<v Speaker 1>to go up in Austin? Stands the reason? It probably will,

0:11:42.200 --> 0:11:45.199
<v Speaker 1>So it'll be interesting to watch. And you know, things

0:11:45.280 --> 0:11:47.880
<v Speaker 1>tend to revert to the means, so I think maybe

0:11:47.880 --> 0:11:50.400
<v Speaker 1>it's a you know, there'll be some lasting impact, but

0:11:50.760 --> 0:11:52.360
<v Speaker 1>I think a lot of people will also come back

0:11:52.400 --> 0:11:54.679
<v Speaker 1>when things normalize. Yeah, somebody talk to me about a

0:11:54.920 --> 0:11:57.439
<v Speaker 1>house in Austin and they were like, bids on it

0:11:57.920 --> 0:12:01.079
<v Speaker 1>or offers so crazy stuff. Um, Gil's so nice to

0:12:01.160 --> 0:12:03.320
<v Speaker 1>check in with you, Gilbarrock. He is US president CE

0:12:03.400 --> 0:12:06.439
<v Speaker 1>have Collier's International with us on the phone from l

0:12:06.520 --> 0:12:06.880
<v Speaker 1>A