WEBVTT - Related Group Chair, Founder, CEO Talks Florida Real Estate

0:00:00.120 --> 0:00:03.240
<v Speaker 1>To discuss this boom in Florida is billionaire real estate

0:00:03.279 --> 0:00:07.600
<v Speaker 1>developer George Perez. George, who's the founder, chairman and CEO

0:00:07.720 --> 0:00:10.200
<v Speaker 1>of the Related Group, has been at the forefront of

0:00:10.320 --> 0:00:14.640
<v Speaker 1>South Florida's evolution for over forty years. And George, let's

0:00:14.640 --> 0:00:17.640
<v Speaker 1>start right there. Let's start with the president elect. It's

0:00:17.680 --> 0:00:20.400
<v Speaker 1>not just the President elect. It's also the red wave

0:00:20.480 --> 0:00:23.000
<v Speaker 1>you're seeing. But certainly when you think about the Winter

0:00:23.079 --> 0:00:25.599
<v Speaker 1>White House over in mar A Lago, how much more

0:00:25.600 --> 0:00:28.160
<v Speaker 1>interest are you now seeing in Florida since the election?

0:00:29.200 --> 0:00:34.559
<v Speaker 2>Well, you know, President Trump is a Florida resident. I

0:00:34.600 --> 0:00:39.040
<v Speaker 2>think a lot of his friends, you know, are in Florida.

0:00:39.800 --> 0:00:42.800
<v Speaker 2>I think he's a real estate was a real estate developer,

0:00:42.800 --> 0:00:45.440
<v Speaker 2>his family still in the real estate development. I think

0:00:45.479 --> 0:00:50.080
<v Speaker 2>he understands what real estate in particular needs to be successful,

0:00:50.120 --> 0:00:54.880
<v Speaker 2>which is lower interest rates, lower inflation rates, so people.

0:00:54.680 --> 0:00:57.040
<v Speaker 3>Feel confident of buying.

0:00:58.360 --> 0:01:01.040
<v Speaker 2>The effect in Miami think is going to be positive,

0:01:01.120 --> 0:01:05.280
<v Speaker 2>but we go way beyond as opposed to other cities

0:01:05.360 --> 0:01:06.600
<v Speaker 2>or the national economy.

0:01:06.760 --> 0:01:10.039
<v Speaker 3>I just came back from London and Madrid and.

0:01:11.840 --> 0:01:14.920
<v Speaker 2>The desire for people to own a place in Miami

0:01:15.000 --> 0:01:17.959
<v Speaker 2>as a second home or actually moved thinking of moving

0:01:18.000 --> 0:01:22.160
<v Speaker 2>when they get to be a retirement age is immense.

0:01:22.640 --> 0:01:25.399
<v Speaker 2>You know, my two sons are in a trip to

0:01:25.440 --> 0:01:27.840
<v Speaker 2>South America, Argentina, Brazil and Mexico.

0:01:28.640 --> 0:01:31.600
<v Speaker 3>Who are the demand for real estate.

0:01:31.440 --> 0:01:34.960
<v Speaker 2>In South Florida is intense.

0:01:35.319 --> 0:01:38.759
<v Speaker 3>And as we know, and you mentioned in.

0:01:38.760 --> 0:01:42.360
<v Speaker 2>Cities like Chicago and New York, we're seeing we're still

0:01:42.360 --> 0:01:46.080
<v Speaker 2>seeing a huge demand for people not just wanting to

0:01:46.120 --> 0:01:49.160
<v Speaker 2>live here, but moving their businesses here, which is the

0:01:49.200 --> 0:01:53.559
<v Speaker 2>first time that has happened to South Florida. So instead

0:01:53.600 --> 0:01:56.720
<v Speaker 2>of just becoming sun and fun, we are becoming a

0:01:56.840 --> 0:01:57.840
<v Speaker 2>serious city.

0:01:57.840 --> 0:02:00.559
<v Speaker 1>Well more than a serious city. You think the business

0:02:00.680 --> 0:02:02.840
<v Speaker 1>aspect alone, and I'm going to ask you to speak

0:02:02.840 --> 0:02:05.080
<v Speaker 1>for the business community here for a moment. When you

0:02:05.120 --> 0:02:08.480
<v Speaker 1>think about the president elects policies, because some of them

0:02:08.520 --> 0:02:12.600
<v Speaker 1>could significantly impact different industries, even yours. You think about

0:02:12.639 --> 0:02:16.560
<v Speaker 1>the immigration policy, for example, a lot of the building

0:02:16.639 --> 0:02:20.280
<v Speaker 1>environment in the United States has relied on an immigrant workforce.

0:02:20.520 --> 0:02:23.400
<v Speaker 1>How do you think that policy in particular might impact

0:02:23.600 --> 0:02:26.359
<v Speaker 1>your business moving forward and others around you.

0:02:27.040 --> 0:02:30.400
<v Speaker 2>Well, look, it's a big concern, you know, it's a big,

0:02:30.440 --> 0:02:34.880
<v Speaker 2>big concern. You know, in Miami a lot of our

0:02:34.919 --> 0:02:38.960
<v Speaker 2>construction workers are I would say maybe eighty percent of

0:02:39.000 --> 0:02:43.320
<v Speaker 2>our constructional workers are Hispanic or more, and we don't

0:02:43.400 --> 0:02:48.640
<v Speaker 2>check to see if they are legal residents or not.

0:02:48.720 --> 0:02:51.679
<v Speaker 2>They're employed by our subcontractors. But I give you a

0:02:51.680 --> 0:02:54.800
<v Speaker 2>little fast anic thought. In Jacksonville, when the governor announced

0:02:54.840 --> 0:02:56.720
<v Speaker 2>that they were going to be checking on to see

0:02:56.720 --> 0:02:59.679
<v Speaker 2>if you legal, if immigrants were illegal or not. The

0:02:59.720 --> 0:03:01.880
<v Speaker 2>next day we went to the job and everybody had

0:03:01.919 --> 0:03:05.119
<v Speaker 2>disappeared for our construction job in Jacksonville and had gone

0:03:05.200 --> 0:03:08.600
<v Speaker 2>to I don't know if to South Georgia or someplace.

0:03:08.720 --> 0:03:13.720
<v Speaker 2>So we we very much depend on immigration to run

0:03:13.720 --> 0:03:14.480
<v Speaker 2>our industry.

0:03:15.240 --> 0:03:20.600
<v Speaker 3>I think that the stance that some of the more.

0:03:22.200 --> 0:03:26.320
<v Speaker 2>Fervent opponents to immigration is going to quiet down. I mean,

0:03:26.400 --> 0:03:31.080
<v Speaker 2>the United States needs a continuous flow of these immigrants

0:03:31.120 --> 0:03:34.400
<v Speaker 2>to fill a lot of jobs. So do we need

0:03:34.440 --> 0:03:37.120
<v Speaker 2>to do it legally? The answer, of course is yes.

0:03:38.320 --> 0:03:40.000
<v Speaker 2>Do I think that we're going to take all the

0:03:40.160 --> 0:03:42.800
<v Speaker 2>illegal immigrants in the United States that have been here

0:03:42.840 --> 0:03:49.000
<v Speaker 2>for many years doing legal work, productive work? I think

0:03:49.040 --> 0:03:51.920
<v Speaker 2>the answers, of course, know you know that would that

0:03:51.960 --> 0:03:54.520
<v Speaker 2>would make that would make it into a police state

0:03:54.720 --> 0:03:58.040
<v Speaker 2>with people checking identifications. I can see myself, because of

0:03:58.080 --> 0:04:00.760
<v Speaker 2>the name Peres, to be stopped in the street asking

0:04:00.840 --> 0:04:01.120
<v Speaker 2>you for.

0:04:01.080 --> 0:04:02.280
<v Speaker 3>An identification card.

0:04:02.600 --> 0:04:05.600
<v Speaker 2>So I think we need to quiet down, you know,

0:04:06.600 --> 0:04:11.800
<v Speaker 2>this rhetoric and come to a understanding because immigration has

0:04:11.880 --> 0:04:16.680
<v Speaker 2>made this country and will continue to play a big

0:04:16.760 --> 0:04:18.360
<v Speaker 2>role in the development of this country.

0:04:18.440 --> 0:04:18.600
<v Speaker 1>Yeah.

0:04:18.640 --> 0:04:21.680
<v Speaker 4>I just think it's fascinating George, because of course, at

0:04:21.680 --> 0:04:26.320
<v Speaker 4>the Republican National Convention, the most visible signs that his

0:04:26.400 --> 0:04:30.400
<v Speaker 4>supporters were holding up said mass deportation, and that's been

0:04:30.839 --> 0:04:34.800
<v Speaker 4>a part of his campaign pledge to the American people

0:04:34.800 --> 0:04:37.600
<v Speaker 4>who elected him. On the other hand, I mean, just

0:04:37.680 --> 0:04:42.480
<v Speaker 4>think about how much labor costs would soar if you

0:04:43.640 --> 0:04:48.880
<v Speaker 4>eliminated the what eleven million immigrants who are here illegally.

0:04:49.360 --> 0:04:51.840
<v Speaker 4>It would just be impossible for you to continue to

0:04:51.880 --> 0:04:53.400
<v Speaker 4>conduct business, I imagine.

0:04:53.480 --> 0:04:57.760
<v Speaker 2>So, and most people need to see that, right, we

0:04:58.839 --> 0:05:01.400
<v Speaker 2>have a place and ask, and I can tell you

0:05:01.440 --> 0:05:05.240
<v Speaker 2>that ninety five ninety eight percent of all the people

0:05:05.240 --> 0:05:07.280
<v Speaker 2>that are in the restaurant business and the hotel business,

0:05:07.680 --> 0:05:10.960
<v Speaker 2>the the in the construction business are immigrants.

0:05:11.120 --> 0:05:13.400
<v Speaker 3>I would say that a lot of those might not

0:05:13.560 --> 0:05:14.920
<v Speaker 3>be legal.

0:05:14.720 --> 0:05:20.280
<v Speaker 2>That are coming to this country for the opportunity. I

0:05:20.400 --> 0:05:23.520
<v Speaker 2>just cannot see what would happen. You know, if that

0:05:23.680 --> 0:05:27.520
<v Speaker 2>was stop. First, the salaries would have to be increased

0:05:27.560 --> 0:05:31.919
<v Speaker 2>tremendously because there's not enough to supply, you know, to

0:05:32.040 --> 0:05:34.680
<v Speaker 2>meet it. And then of course it would have repercussions

0:05:34.680 --> 0:05:38.920
<v Speaker 2>on inflation and so forth. So I think when quieter,

0:05:39.520 --> 0:05:42.479
<v Speaker 2>you know, smarter minds get together, I think they're going

0:05:42.520 --> 0:05:46.080
<v Speaker 2>to really understand this. I think the economy is the

0:05:46.120 --> 0:05:50.640
<v Speaker 2>most important thing, and I am hoping, you know.

0:05:50.839 --> 0:05:52.080
<v Speaker 3>Trump is now our present.

0:05:52.360 --> 0:05:55.680
<v Speaker 2>So I think, whether you agree or disagree, we need

0:05:55.720 --> 0:06:00.160
<v Speaker 2>to all gather behind them and try to do what's

0:06:00.200 --> 0:06:00.880
<v Speaker 2>for this country.

0:06:00.920 --> 0:06:02.200
<v Speaker 3>Have for this country.

0:06:03.320 --> 0:06:06.479
<v Speaker 2>We have been in a period that people don't talk

0:06:06.520 --> 0:06:09.440
<v Speaker 2>to each other, you know, extremes have become more popular.

0:06:10.560 --> 0:06:14.400
<v Speaker 2>We need to become much more heading down the middle,

0:06:14.720 --> 0:06:19.440
<v Speaker 2>listen to each others, to each other's ideas, and make

0:06:19.480 --> 0:06:20.440
<v Speaker 2>the best out of.

0:06:21.560 --> 0:06:24.280
<v Speaker 3>A better solution, you know, to do this.

0:06:24.640 --> 0:06:26.720
<v Speaker 2>And I think this goes not only for immigration, and

0:06:26.800 --> 0:06:30.640
<v Speaker 2>goes to health policy, environmental policy, and so forth. We

0:06:31.160 --> 0:06:34.320
<v Speaker 2>go seem to go from extreme to extreme, and I

0:06:34.360 --> 0:06:36.440
<v Speaker 2>am searching for that middle ground.

0:06:36.480 --> 0:06:39.400
<v Speaker 1>George, what about you know, speaking of the different policies

0:06:39.440 --> 0:06:43.760
<v Speaker 1>also trade policy, because it's pretty clear that the right

0:06:44.120 --> 0:06:46.320
<v Speaker 1>part of the Republican Party, the further right you go,

0:06:46.400 --> 0:06:49.320
<v Speaker 1>the more protectionist it gets as well. And are you

0:06:49.560 --> 0:06:53.720
<v Speaker 1>very concerned about what trade policies could look like, particularly

0:06:53.760 --> 0:06:56.360
<v Speaker 1>when it comes to your business and business in Florida.

0:06:56.360 --> 0:06:58.000
<v Speaker 1>I mean, you know a lot of people rely on

0:06:58.080 --> 0:07:00.000
<v Speaker 1>not just foreign workers, but importing material.

0:07:01.600 --> 0:07:01.720
<v Speaker 5>Well.

0:07:01.760 --> 0:07:06.560
<v Speaker 2>See, look you've seen what you know, what happens when

0:07:06.640 --> 0:07:10.720
<v Speaker 2>the supply chain is disrupted, particularly in my business during COVID,

0:07:10.840 --> 0:07:16.400
<v Speaker 2>for example, the the the supply chain was totally busted.

0:07:16.440 --> 0:07:18.560
<v Speaker 3>We couldn't get all the prime.

0:07:18.360 --> 0:07:21.760
<v Speaker 2>Materials that we wanted, and construction costs you know, exploded.

0:07:22.960 --> 0:07:26.000
<v Speaker 2>That has passed on to the consumer. You know, nobody

0:07:26.000 --> 0:07:30.000
<v Speaker 2>builds a building to lose money. So I am very

0:07:30.080 --> 0:07:35.000
<v Speaker 2>much anti isolations. I think in a in a free market,

0:07:35.480 --> 0:07:39.720
<v Speaker 2>in a fair free market, I think that there's some

0:07:39.920 --> 0:07:44.640
<v Speaker 2>things that we can't produce effectively that we need.

0:07:44.520 --> 0:07:45.840
<v Speaker 3>To purchase from abroad.

0:07:46.200 --> 0:07:48.840
<v Speaker 2>And our technology and the things that we do better,

0:07:49.200 --> 0:07:52.640
<v Speaker 2>you know, because we have such an advanced you know, country,

0:07:53.000 --> 0:07:56.840
<v Speaker 2>are the things that we should be concentrated in. And

0:07:56.880 --> 0:08:03.400
<v Speaker 2>that all requires a free chain, a free change of product,

0:08:03.480 --> 0:08:09.040
<v Speaker 2>services and so forth between the most efficient producers of

0:08:09.480 --> 0:08:13.440
<v Speaker 2>whatever it is that you're producing. So, you know, televisions

0:08:13.440 --> 0:08:17.160
<v Speaker 2>today are coming from you know, many different parts today.

0:08:17.240 --> 0:08:20.040
<v Speaker 2>To build the whole television here would be you know,

0:08:20.200 --> 0:08:25.320
<v Speaker 2>impractical and extremely expensive. So you know, things like this,

0:08:25.480 --> 0:08:28.480
<v Speaker 2>I think are you know, everybody knows this, you know,

0:08:28.600 --> 0:08:33.240
<v Speaker 2>so I want sentiment, you know, to take a second

0:08:33.240 --> 0:08:37.320
<v Speaker 2>place to logic and see what we really need, you know,

0:08:37.440 --> 0:08:40.360
<v Speaker 2>to Expand you know, we are in such a position

0:08:41.080 --> 0:08:43.760
<v Speaker 2>both in and all in the United States, but particularly

0:08:43.760 --> 0:08:48.360
<v Speaker 2>in South Florida, that we really are attracting the whole world,

0:08:48.480 --> 0:08:51.959
<v Speaker 2>you know, to come to this. This means growth, This

0:08:52.080 --> 0:08:56.760
<v Speaker 2>means production, this means employment, you know, and we need

0:08:56.800 --> 0:09:00.839
<v Speaker 2>to take advantage of that opportunity, just like we're doing

0:09:00.880 --> 0:09:03.400
<v Speaker 2>in South Florida. Our market in South Florida, we're opening

0:09:03.440 --> 0:09:06.760
<v Speaker 2>more condominiums, both luxury and middle class.

0:09:07.280 --> 0:09:08.120
<v Speaker 3>Than ever before.

0:09:08.400 --> 0:09:10.720
<v Speaker 2>And they're all being consumed and they're being consumed by

0:09:10.880 --> 0:09:17.320
<v Speaker 2>both cities from you know, older cities, both from California

0:09:17.440 --> 0:09:21.520
<v Speaker 2>and the Northeast and from South America. We have a

0:09:21.600 --> 0:09:23.840
<v Speaker 2>huge South American market that wants to come here. And

0:09:23.880 --> 0:09:27.160
<v Speaker 2>now Europeans are starting to show, and we need to

0:09:27.240 --> 0:09:30.720
<v Speaker 2>tell show them that we are a stable economy, that

0:09:30.840 --> 0:09:34.440
<v Speaker 2>we're all going to be and gather for the President

0:09:34.440 --> 0:09:36.960
<v Speaker 2>of the United States that this is one country for all.

0:09:37.360 --> 0:09:42.120
<v Speaker 2>So I hope extremes disappears as much as possible.

0:09:43.760 --> 0:09:47.800
<v Speaker 4>And George, I want to ask about something less contentious,

0:09:47.960 --> 0:09:51.000
<v Speaker 4>although for us, you know, interest rates is usually all

0:09:51.080 --> 0:09:51.760
<v Speaker 4>we talk about.

0:09:51.880 --> 0:09:53.280
<v Speaker 1>It's plenty of content What do you.

0:09:53.240 --> 0:09:56.360
<v Speaker 4>Think about the raids market right now? I mean, the

0:09:56.360 --> 0:09:58.560
<v Speaker 4>Fed was on track to cut raids down to some

0:09:58.600 --> 0:10:00.640
<v Speaker 4>people thought three to three and a half percent, is

0:10:00.640 --> 0:10:03.240
<v Speaker 4>what John Paulson told Shanali a couple of weeks ago.

0:10:03.520 --> 0:10:07.120
<v Speaker 4>Now it looks like the market is expecting far less

0:10:07.160 --> 0:10:11.080
<v Speaker 4>aggressive cuts and maybe if these policies are inflationary, they'll

0:10:11.080 --> 0:10:14.280
<v Speaker 4>stop completely next year. How much does the real estate

0:10:14.280 --> 0:10:15.520
<v Speaker 4>industry need those cuts?

0:10:16.720 --> 0:10:20.680
<v Speaker 2>But we need those cuts badly, right, Remember, there's a

0:10:20.840 --> 0:10:26.000
<v Speaker 2>huge number of real estate that has been financed construction

0:10:26.120 --> 0:10:30.720
<v Speaker 2>and permanent at floating rates, and those floating rates of Now,

0:10:30.800 --> 0:10:33.080
<v Speaker 2>if you build a project and you bar at three

0:10:33.120 --> 0:10:35.600
<v Speaker 2>percent and now you're paying eight percent, I don't have

0:10:35.600 --> 0:10:39.400
<v Speaker 2>to tell you what impact that has, particularly if you've overpowered,

0:10:39.640 --> 0:10:41.959
<v Speaker 2>right so there's a lot of people hanging that are

0:10:42.000 --> 0:10:46.200
<v Speaker 2>waiting for, you know, interest rates to go down. I

0:10:46.240 --> 0:10:48.480
<v Speaker 2>think the Fed you know, make the right decision on

0:10:49.040 --> 0:10:51.440
<v Speaker 2>the fifty basis point. I thought we were going to

0:10:51.440 --> 0:10:54.559
<v Speaker 2>get another fifty bases points. I think they're looking very

0:10:54.600 --> 0:10:59.800
<v Speaker 2>closely at inflation. In my opinion, I think inflation has

0:11:00.640 --> 0:11:04.800
<v Speaker 2>being controlled. I expect further cuts.

0:11:06.760 --> 0:11:07.480
<v Speaker 3>Next year.

0:11:07.800 --> 0:11:09.800
<v Speaker 2>I never thought we were going to get three to

0:11:09.880 --> 0:11:14.640
<v Speaker 2>four percent cuts, so I think it's going to be

0:11:16.440 --> 0:11:19.160
<v Speaker 2>it's going to be less pronounced, but I.

0:11:19.160 --> 0:11:21.720
<v Speaker 5>Believe that we will continue to see cuts and will

0:11:21.720 --> 0:11:28.000
<v Speaker 5>continue to see an increase in demand based on people's

0:11:28.559 --> 0:11:30.680
<v Speaker 5>able to afford you know, more.

0:11:30.679 --> 0:11:32.520
<v Speaker 3>Re state because of the interest rate costs.

0:11:32.559 --> 0:11:34.600
<v Speaker 2>But I do not see you know, a two or

0:11:34.640 --> 0:11:36.959
<v Speaker 2>three percent interest rate cut anytime soon.

0:11:37.160 --> 0:11:39.400
<v Speaker 4>Hey George, we got to go because of the clock,

0:11:39.480 --> 0:11:41.000
<v Speaker 4>but I hope next time you're in New York can

0:11:41.040 --> 0:11:43.280
<v Speaker 4>get here in the studio. It's been great talking to you.

0:11:43.320 --> 0:11:46.560
<v Speaker 4>George Perez, there is the CEO of the Related Group.