1 00:00:00,120 --> 00:00:03,240 Speaker 1: To discuss this boom in Florida is billionaire real estate 2 00:00:03,279 --> 00:00:07,600 Speaker 1: developer George Perez. George, who's the founder, chairman and CEO 3 00:00:07,720 --> 00:00:10,200 Speaker 1: of the Related Group, has been at the forefront of 4 00:00:10,320 --> 00:00:14,640 Speaker 1: South Florida's evolution for over forty years. And George, let's 5 00:00:14,640 --> 00:00:17,640 Speaker 1: start right there. Let's start with the president elect. It's 6 00:00:17,680 --> 00:00:20,400 Speaker 1: not just the President elect. It's also the red wave 7 00:00:20,480 --> 00:00:23,000 Speaker 1: you're seeing. But certainly when you think about the Winter 8 00:00:23,079 --> 00:00:25,599 Speaker 1: White House over in mar A Lago, how much more 9 00:00:25,600 --> 00:00:28,160 Speaker 1: interest are you now seeing in Florida since the election? 10 00:00:29,200 --> 00:00:34,559 Speaker 2: Well, you know, President Trump is a Florida resident. I 11 00:00:34,600 --> 00:00:39,040 Speaker 2: think a lot of his friends, you know, are in Florida. 12 00:00:39,800 --> 00:00:42,800 Speaker 2: I think he's a real estate was a real estate developer, 13 00:00:42,800 --> 00:00:45,440 Speaker 2: his family still in the real estate development. I think 14 00:00:45,479 --> 00:00:50,080 Speaker 2: he understands what real estate in particular needs to be successful, 15 00:00:50,120 --> 00:00:54,880 Speaker 2: which is lower interest rates, lower inflation rates, so people. 16 00:00:54,680 --> 00:00:57,040 Speaker 3: Feel confident of buying. 17 00:00:58,360 --> 00:01:01,040 Speaker 2: The effect in Miami think is going to be positive, 18 00:01:01,120 --> 00:01:05,280 Speaker 2: but we go way beyond as opposed to other cities 19 00:01:05,360 --> 00:01:06,600 Speaker 2: or the national economy. 20 00:01:06,760 --> 00:01:10,039 Speaker 3: I just came back from London and Madrid and. 21 00:01:11,840 --> 00:01:14,920 Speaker 2: The desire for people to own a place in Miami 22 00:01:15,000 --> 00:01:17,959 Speaker 2: as a second home or actually moved thinking of moving 23 00:01:18,000 --> 00:01:22,160 Speaker 2: when they get to be a retirement age is immense. 24 00:01:22,640 --> 00:01:25,399 Speaker 2: You know, my two sons are in a trip to 25 00:01:25,440 --> 00:01:27,840 Speaker 2: South America, Argentina, Brazil and Mexico. 26 00:01:28,640 --> 00:01:31,600 Speaker 3: Who are the demand for real estate. 27 00:01:31,440 --> 00:01:34,960 Speaker 2: In South Florida is intense. 28 00:01:35,319 --> 00:01:38,759 Speaker 3: And as we know, and you mentioned in. 29 00:01:38,760 --> 00:01:42,360 Speaker 2: Cities like Chicago and New York, we're seeing we're still 30 00:01:42,360 --> 00:01:46,080 Speaker 2: seeing a huge demand for people not just wanting to 31 00:01:46,120 --> 00:01:49,160 Speaker 2: live here, but moving their businesses here, which is the 32 00:01:49,200 --> 00:01:53,559 Speaker 2: first time that has happened to South Florida. So instead 33 00:01:53,600 --> 00:01:56,720 Speaker 2: of just becoming sun and fun, we are becoming a 34 00:01:56,840 --> 00:01:57,840 Speaker 2: serious city. 35 00:01:57,840 --> 00:02:00,559 Speaker 1: Well more than a serious city. You think the business 36 00:02:00,680 --> 00:02:02,840 Speaker 1: aspect alone, and I'm going to ask you to speak 37 00:02:02,840 --> 00:02:05,080 Speaker 1: for the business community here for a moment. When you 38 00:02:05,120 --> 00:02:08,480 Speaker 1: think about the president elects policies, because some of them 39 00:02:08,520 --> 00:02:12,600 Speaker 1: could significantly impact different industries, even yours. You think about 40 00:02:12,639 --> 00:02:16,560 Speaker 1: the immigration policy, for example, a lot of the building 41 00:02:16,639 --> 00:02:20,280 Speaker 1: environment in the United States has relied on an immigrant workforce. 42 00:02:20,520 --> 00:02:23,400 Speaker 1: How do you think that policy in particular might impact 43 00:02:23,600 --> 00:02:26,359 Speaker 1: your business moving forward and others around you. 44 00:02:27,040 --> 00:02:30,400 Speaker 2: Well, look, it's a big concern, you know, it's a big, 45 00:02:30,440 --> 00:02:34,880 Speaker 2: big concern. You know, in Miami a lot of our 46 00:02:34,919 --> 00:02:38,960 Speaker 2: construction workers are I would say maybe eighty percent of 47 00:02:39,000 --> 00:02:43,320 Speaker 2: our constructional workers are Hispanic or more, and we don't 48 00:02:43,400 --> 00:02:48,640 Speaker 2: check to see if they are legal residents or not. 49 00:02:48,720 --> 00:02:51,679 Speaker 2: They're employed by our subcontractors. But I give you a 50 00:02:51,680 --> 00:02:54,800 Speaker 2: little fast anic thought. In Jacksonville, when the governor announced 51 00:02:54,840 --> 00:02:56,720 Speaker 2: that they were going to be checking on to see 52 00:02:56,720 --> 00:02:59,679 Speaker 2: if you legal, if immigrants were illegal or not. The 53 00:02:59,720 --> 00:03:01,880 Speaker 2: next day we went to the job and everybody had 54 00:03:01,919 --> 00:03:05,119 Speaker 2: disappeared for our construction job in Jacksonville and had gone 55 00:03:05,200 --> 00:03:08,600 Speaker 2: to I don't know if to South Georgia or someplace. 56 00:03:08,720 --> 00:03:13,720 Speaker 2: So we we very much depend on immigration to run 57 00:03:13,720 --> 00:03:14,480 Speaker 2: our industry. 58 00:03:15,240 --> 00:03:20,600 Speaker 3: I think that the stance that some of the more. 59 00:03:22,200 --> 00:03:26,320 Speaker 2: Fervent opponents to immigration is going to quiet down. I mean, 60 00:03:26,400 --> 00:03:31,080 Speaker 2: the United States needs a continuous flow of these immigrants 61 00:03:31,120 --> 00:03:34,400 Speaker 2: to fill a lot of jobs. So do we need 62 00:03:34,440 --> 00:03:37,120 Speaker 2: to do it legally? The answer, of course is yes. 63 00:03:38,320 --> 00:03:40,000 Speaker 2: Do I think that we're going to take all the 64 00:03:40,160 --> 00:03:42,800 Speaker 2: illegal immigrants in the United States that have been here 65 00:03:42,840 --> 00:03:49,000 Speaker 2: for many years doing legal work, productive work? I think 66 00:03:49,040 --> 00:03:51,920 Speaker 2: the answers, of course, know you know that would that 67 00:03:51,960 --> 00:03:54,520 Speaker 2: would make that would make it into a police state 68 00:03:54,720 --> 00:03:58,040 Speaker 2: with people checking identifications. I can see myself, because of 69 00:03:58,080 --> 00:04:00,760 Speaker 2: the name Peres, to be stopped in the street asking 70 00:04:00,840 --> 00:04:01,120 Speaker 2: you for. 71 00:04:01,080 --> 00:04:02,280 Speaker 3: An identification card. 72 00:04:02,600 --> 00:04:05,600 Speaker 2: So I think we need to quiet down, you know, 73 00:04:06,600 --> 00:04:11,800 Speaker 2: this rhetoric and come to a understanding because immigration has 74 00:04:11,880 --> 00:04:16,680 Speaker 2: made this country and will continue to play a big 75 00:04:16,760 --> 00:04:18,360 Speaker 2: role in the development of this country. 76 00:04:18,440 --> 00:04:18,600 Speaker 1: Yeah. 77 00:04:18,640 --> 00:04:21,680 Speaker 4: I just think it's fascinating George, because of course, at 78 00:04:21,680 --> 00:04:26,320 Speaker 4: the Republican National Convention, the most visible signs that his 79 00:04:26,400 --> 00:04:30,400 Speaker 4: supporters were holding up said mass deportation, and that's been 80 00:04:30,839 --> 00:04:34,800 Speaker 4: a part of his campaign pledge to the American people 81 00:04:34,800 --> 00:04:37,600 Speaker 4: who elected him. On the other hand, I mean, just 82 00:04:37,680 --> 00:04:42,480 Speaker 4: think about how much labor costs would soar if you 83 00:04:43,640 --> 00:04:48,880 Speaker 4: eliminated the what eleven million immigrants who are here illegally. 84 00:04:49,360 --> 00:04:51,840 Speaker 4: It would just be impossible for you to continue to 85 00:04:51,880 --> 00:04:53,400 Speaker 4: conduct business, I imagine. 86 00:04:53,480 --> 00:04:57,760 Speaker 2: So, and most people need to see that, right, we 87 00:04:58,839 --> 00:05:01,400 Speaker 2: have a place and ask, and I can tell you 88 00:05:01,440 --> 00:05:05,240 Speaker 2: that ninety five ninety eight percent of all the people 89 00:05:05,240 --> 00:05:07,280 Speaker 2: that are in the restaurant business and the hotel business, 90 00:05:07,680 --> 00:05:10,960 Speaker 2: the the in the construction business are immigrants. 91 00:05:11,120 --> 00:05:13,400 Speaker 3: I would say that a lot of those might not 92 00:05:13,560 --> 00:05:14,920 Speaker 3: be legal. 93 00:05:14,720 --> 00:05:20,280 Speaker 2: That are coming to this country for the opportunity. I 94 00:05:20,400 --> 00:05:23,520 Speaker 2: just cannot see what would happen. You know, if that 95 00:05:23,680 --> 00:05:27,520 Speaker 2: was stop. First, the salaries would have to be increased 96 00:05:27,560 --> 00:05:31,919 Speaker 2: tremendously because there's not enough to supply, you know, to 97 00:05:32,040 --> 00:05:34,680 Speaker 2: meet it. And then of course it would have repercussions 98 00:05:34,680 --> 00:05:38,920 Speaker 2: on inflation and so forth. So I think when quieter, 99 00:05:39,520 --> 00:05:42,479 Speaker 2: you know, smarter minds get together, I think they're going 100 00:05:42,520 --> 00:05:46,080 Speaker 2: to really understand this. I think the economy is the 101 00:05:46,120 --> 00:05:50,640 Speaker 2: most important thing, and I am hoping, you know. 102 00:05:50,839 --> 00:05:52,080 Speaker 3: Trump is now our present. 103 00:05:52,360 --> 00:05:55,680 Speaker 2: So I think, whether you agree or disagree, we need 104 00:05:55,720 --> 00:06:00,160 Speaker 2: to all gather behind them and try to do what's 105 00:06:00,200 --> 00:06:00,880 Speaker 2: for this country. 106 00:06:00,920 --> 00:06:02,200 Speaker 3: Have for this country. 107 00:06:03,320 --> 00:06:06,479 Speaker 2: We have been in a period that people don't talk 108 00:06:06,520 --> 00:06:09,440 Speaker 2: to each other, you know, extremes have become more popular. 109 00:06:10,560 --> 00:06:14,400 Speaker 2: We need to become much more heading down the middle, 110 00:06:14,720 --> 00:06:19,440 Speaker 2: listen to each others, to each other's ideas, and make 111 00:06:19,480 --> 00:06:20,440 Speaker 2: the best out of. 112 00:06:21,560 --> 00:06:24,280 Speaker 3: A better solution, you know, to do this. 113 00:06:24,640 --> 00:06:26,720 Speaker 2: And I think this goes not only for immigration, and 114 00:06:26,800 --> 00:06:30,640 Speaker 2: goes to health policy, environmental policy, and so forth. We 115 00:06:31,160 --> 00:06:34,320 Speaker 2: go seem to go from extreme to extreme, and I 116 00:06:34,360 --> 00:06:36,440 Speaker 2: am searching for that middle ground. 117 00:06:36,480 --> 00:06:39,400 Speaker 1: George, what about you know, speaking of the different policies 118 00:06:39,440 --> 00:06:43,760 Speaker 1: also trade policy, because it's pretty clear that the right 119 00:06:44,120 --> 00:06:46,320 Speaker 1: part of the Republican Party, the further right you go, 120 00:06:46,400 --> 00:06:49,320 Speaker 1: the more protectionist it gets as well. And are you 121 00:06:49,560 --> 00:06:53,720 Speaker 1: very concerned about what trade policies could look like, particularly 122 00:06:53,760 --> 00:06:56,360 Speaker 1: when it comes to your business and business in Florida. 123 00:06:56,360 --> 00:06:58,000 Speaker 1: I mean, you know a lot of people rely on 124 00:06:58,080 --> 00:07:00,000 Speaker 1: not just foreign workers, but importing material. 125 00:07:01,600 --> 00:07:01,720 Speaker 5: Well. 126 00:07:01,760 --> 00:07:06,560 Speaker 2: See, look you've seen what you know, what happens when 127 00:07:06,640 --> 00:07:10,720 Speaker 2: the supply chain is disrupted, particularly in my business during COVID, 128 00:07:10,840 --> 00:07:16,400 Speaker 2: for example, the the the supply chain was totally busted. 129 00:07:16,440 --> 00:07:18,560 Speaker 3: We couldn't get all the prime. 130 00:07:18,360 --> 00:07:21,760 Speaker 2: Materials that we wanted, and construction costs you know, exploded. 131 00:07:22,960 --> 00:07:26,000 Speaker 2: That has passed on to the consumer. You know, nobody 132 00:07:26,000 --> 00:07:30,000 Speaker 2: builds a building to lose money. So I am very 133 00:07:30,080 --> 00:07:35,000 Speaker 2: much anti isolations. I think in a in a free market, 134 00:07:35,480 --> 00:07:39,720 Speaker 2: in a fair free market, I think that there's some 135 00:07:39,920 --> 00:07:44,640 Speaker 2: things that we can't produce effectively that we need. 136 00:07:44,520 --> 00:07:45,840 Speaker 3: To purchase from abroad. 137 00:07:46,200 --> 00:07:48,840 Speaker 2: And our technology and the things that we do better, 138 00:07:49,200 --> 00:07:52,640 Speaker 2: you know, because we have such an advanced you know, country, 139 00:07:53,000 --> 00:07:56,840 Speaker 2: are the things that we should be concentrated in. And 140 00:07:56,880 --> 00:08:03,400 Speaker 2: that all requires a free chain, a free change of product, 141 00:08:03,480 --> 00:08:09,040 Speaker 2: services and so forth between the most efficient producers of 142 00:08:09,480 --> 00:08:13,440 Speaker 2: whatever it is that you're producing. So, you know, televisions 143 00:08:13,440 --> 00:08:17,160 Speaker 2: today are coming from you know, many different parts today. 144 00:08:17,240 --> 00:08:20,040 Speaker 2: To build the whole television here would be you know, 145 00:08:20,200 --> 00:08:25,320 Speaker 2: impractical and extremely expensive. So you know, things like this, 146 00:08:25,480 --> 00:08:28,480 Speaker 2: I think are you know, everybody knows this, you know, 147 00:08:28,600 --> 00:08:33,240 Speaker 2: so I want sentiment, you know, to take a second 148 00:08:33,240 --> 00:08:37,320 Speaker 2: place to logic and see what we really need, you know, 149 00:08:37,440 --> 00:08:40,360 Speaker 2: to Expand you know, we are in such a position 150 00:08:41,080 --> 00:08:43,760 Speaker 2: both in and all in the United States, but particularly 151 00:08:43,760 --> 00:08:48,360 Speaker 2: in South Florida, that we really are attracting the whole world, 152 00:08:48,480 --> 00:08:51,959 Speaker 2: you know, to come to this. This means growth, This 153 00:08:52,080 --> 00:08:56,760 Speaker 2: means production, this means employment, you know, and we need 154 00:08:56,800 --> 00:09:00,839 Speaker 2: to take advantage of that opportunity, just like we're doing 155 00:09:00,880 --> 00:09:03,400 Speaker 2: in South Florida. Our market in South Florida, we're opening 156 00:09:03,440 --> 00:09:06,760 Speaker 2: more condominiums, both luxury and middle class. 157 00:09:07,280 --> 00:09:08,120 Speaker 3: Than ever before. 158 00:09:08,400 --> 00:09:10,720 Speaker 2: And they're all being consumed and they're being consumed by 159 00:09:10,880 --> 00:09:17,320 Speaker 2: both cities from you know, older cities, both from California 160 00:09:17,440 --> 00:09:21,520 Speaker 2: and the Northeast and from South America. We have a 161 00:09:21,600 --> 00:09:23,840 Speaker 2: huge South American market that wants to come here. And 162 00:09:23,880 --> 00:09:27,160 Speaker 2: now Europeans are starting to show, and we need to 163 00:09:27,240 --> 00:09:30,720 Speaker 2: tell show them that we are a stable economy, that 164 00:09:30,840 --> 00:09:34,440 Speaker 2: we're all going to be and gather for the President 165 00:09:34,440 --> 00:09:36,960 Speaker 2: of the United States that this is one country for all. 166 00:09:37,360 --> 00:09:42,120 Speaker 2: So I hope extremes disappears as much as possible. 167 00:09:43,760 --> 00:09:47,800 Speaker 4: And George, I want to ask about something less contentious, 168 00:09:47,960 --> 00:09:51,000 Speaker 4: although for us, you know, interest rates is usually all 169 00:09:51,080 --> 00:09:51,760 Speaker 4: we talk about. 170 00:09:51,880 --> 00:09:53,280 Speaker 1: It's plenty of content What do you. 171 00:09:53,240 --> 00:09:56,360 Speaker 4: Think about the raids market right now? I mean, the 172 00:09:56,360 --> 00:09:58,560 Speaker 4: Fed was on track to cut raids down to some 173 00:09:58,600 --> 00:10:00,640 Speaker 4: people thought three to three and a half percent, is 174 00:10:00,640 --> 00:10:03,240 Speaker 4: what John Paulson told Shanali a couple of weeks ago. 175 00:10:03,520 --> 00:10:07,120 Speaker 4: Now it looks like the market is expecting far less 176 00:10:07,160 --> 00:10:11,080 Speaker 4: aggressive cuts and maybe if these policies are inflationary, they'll 177 00:10:11,080 --> 00:10:14,280 Speaker 4: stop completely next year. How much does the real estate 178 00:10:14,280 --> 00:10:15,520 Speaker 4: industry need those cuts? 179 00:10:16,720 --> 00:10:20,680 Speaker 2: But we need those cuts badly, right, Remember, there's a 180 00:10:20,840 --> 00:10:26,000 Speaker 2: huge number of real estate that has been financed construction 181 00:10:26,120 --> 00:10:30,720 Speaker 2: and permanent at floating rates, and those floating rates of Now, 182 00:10:30,800 --> 00:10:33,080 Speaker 2: if you build a project and you bar at three 183 00:10:33,120 --> 00:10:35,600 Speaker 2: percent and now you're paying eight percent, I don't have 184 00:10:35,600 --> 00:10:39,400 Speaker 2: to tell you what impact that has, particularly if you've overpowered, 185 00:10:39,640 --> 00:10:41,959 Speaker 2: right so there's a lot of people hanging that are 186 00:10:42,000 --> 00:10:46,200 Speaker 2: waiting for, you know, interest rates to go down. I 187 00:10:46,240 --> 00:10:48,480 Speaker 2: think the Fed you know, make the right decision on 188 00:10:49,040 --> 00:10:51,440 Speaker 2: the fifty basis point. I thought we were going to 189 00:10:51,440 --> 00:10:54,559 Speaker 2: get another fifty bases points. I think they're looking very 190 00:10:54,600 --> 00:10:59,800 Speaker 2: closely at inflation. In my opinion, I think inflation has 191 00:11:00,640 --> 00:11:04,800 Speaker 2: being controlled. I expect further cuts. 192 00:11:06,760 --> 00:11:07,480 Speaker 3: Next year. 193 00:11:07,800 --> 00:11:09,800 Speaker 2: I never thought we were going to get three to 194 00:11:09,880 --> 00:11:14,640 Speaker 2: four percent cuts, so I think it's going to be 195 00:11:16,440 --> 00:11:19,160 Speaker 2: it's going to be less pronounced, but I. 196 00:11:19,160 --> 00:11:21,720 Speaker 5: Believe that we will continue to see cuts and will 197 00:11:21,720 --> 00:11:28,000 Speaker 5: continue to see an increase in demand based on people's 198 00:11:28,559 --> 00:11:30,680 Speaker 5: able to afford you know, more. 199 00:11:30,679 --> 00:11:32,520 Speaker 3: Re state because of the interest rate costs. 200 00:11:32,559 --> 00:11:34,600 Speaker 2: But I do not see you know, a two or 201 00:11:34,640 --> 00:11:36,959 Speaker 2: three percent interest rate cut anytime soon. 202 00:11:37,160 --> 00:11:39,400 Speaker 4: Hey George, we got to go because of the clock, 203 00:11:39,480 --> 00:11:41,000 Speaker 4: but I hope next time you're in New York can 204 00:11:41,040 --> 00:11:43,280 Speaker 4: get here in the studio. It's been great talking to you. 205 00:11:43,320 --> 00:11:46,560 Speaker 4: George Perez, there is the CEO of the Related Group.