I was looking at.
Do you think that there's going to be some gray lines on these zoning issues?
Because I'm looking at you know, I'm starting to see like
like residential and industrial and and restaurants and industrial.
And you're starting to see office buildings and industrial
and you're starting to see kind of a blend, certainly not in the single family
neighborhoods because, you know, NIMBY, not in my backyard,
but but in some of the other areas.
You're like, I saw self-storage get converted into
an office building and an office building get converted into residential.
And, you know, like,
all these things are going on and I and I seen some also some industrial areas
are starting to be a little more urban hip kind of loft stuff.
Are you seeing what are you seeing in that area?
Because it looks like people are like
and by the way, industrial areas generally are the cheapest.
Yeah, areas. Yeah.
So like you think about as you drive through, got those big,
you know, roller doors and everything and, you know, the trucks and everything.
Generally, people don't like to live there, eat there, all that kind of stuff.
But that seems to be changing. We were just in Dallas
two weeks ago and I was like, it was
I was seeing these interior designers pop up and these great restaurants pop up
and there's some really cool residential pop up right outside of Dallas
in these industrial areas.
So are you seeing that all over?
Yeah, there's the lines are getting blurred here.
Yeah. And it's
and to your point, there's the NIMBY ism that's going to say, no, no, no, no, no.
And I guess it depends. Municipality. Municipality.
So, you know, the cities that are more open to a little bit of that
blurred line, blurred line that is going to
see the progress that they really need to because you're right, industrial
sometimes becomes retail, office becomes retail, retail becomes office.
So there's there needs to be an open
look at how those things are
or else you're going to have dead zones and you don't want dead zones.
Right.
Do you want to see the backfilling in whatever it is?
And because retail has become industrial in a lot of ways
because of distribution centers and offices become medical.
And, you know, it's just it's real interesting and super, super interesting.
You should be able to, you know, like you would go to a medical area,
like around a hospital and all that stuff would be
but now they've got residential over retail and residential over a warehouse.
And it's like, you know, by the way, if you think about it,
if you're in an office area, and you're living, it's
quiet at night like everyone goes home.
Same thing with industrial. Everybody goes home.
So these are quiet areas.
Everybody, you know,
kind of moves around the city to these zones based on what they are.
But I see that it's all blending right now and very, very interesting.
Yeah. Yeah. And it's cool.
I mean, it you know, it is it is the do that are cool cities and they are.
Yeah. Yeah.
It's it's you're you're seeing it a lot in the progressive ones, right?
Right. That's exactly right. Yeah.
Yeah. It's pretty cool.
I know when we were
we were just in that at that Dallas event, and it was it was very cool to see
we had this great event downtown actually in the industrial area.
And at this really cool bar.
And right across was interior design, residential, all this really
little vibe going on and sometimes
so those are the beginnings of transformations to.
Yeah. Right. Yeah.
Yeah, they do.
And there's one,
there's always the one that goes in and you know, the or the restaurant
that goes into a residential area
and everybody says, no, it's never going to work here.
And then five restaurants follow and we've seen it and, you know, tie
in the success.
And what that does is it transforms an area.
It you know, I mean, I could point out very specific ones where a cool place
has increased home values and has brought in other types of businesses and retail.
We see that a lot in Phenix with like the big in Arcadia
and they're actually putting a big over in Scottsdale now.
I mean, you know,
so a lot of those kind of fun places because a lot of people
want a fun spot to go, almost like a neighborhood bar or restaurant.
Right.
So if the right thing comes, then that makes it more of a fun vibe
and people want to live there. Yeah. You know, if you look at
you mentioned the Vegas post, the, you know, was a great example
in Arcadia as well, where that was a residential neighborhood.
And he went to a an old post office That's right.
And look what has happened as a result.
And then same thing in downtown Gilbert where there were really there was,
you know, kind of a standoffish.
Yeah. And almost all single family. All single family.
And then it really has all of Gilbert has changed.
It's completely changed now.
It's and it's more because they have like a downtown.
It's right. It's really great.
Yeah. The downtown sucked.
Yeah. For years. Right.
You would drive right through it.
Not even know it was Gilbert's downtown.
And if you did, you're
this is not a very nice downtown, but now it's completely better.
Yeah.
Someone took a risk and and everyone followed.
But I again, I think I think the death of all this is, is you know, exaggerated.
And I, I do, too. Sunbelt states, you know.
50% of the population is in the Sun Belt states that, you know.
That's crazy.
Is that right? Yeah.
Wow. That's Sunbelt states would be
basically if you look at the smile of the country.
Right. Okay.
So Southern I mean, California's considered Sunbelt state, but really,
if you look at the smile from Southern California, Arizona, Texas,
Georgia, I've heard all the way to Florida.
Okay.
You know, that's where
so somebody was going to buy office or rent out an office space.
Would you recommend they do it now
or should they wait to kind of see how things go?
Yeah, I know, I know.
You know, the crystal ball question.
Put them on the spot. Right. Right.
I I'm I don't like having to time the market if you need it now.
I would rent it now or buy it now because
interest in here's the thing, interest rates are going up.
So even if prices go down, interest rates go up.
It's a it's it's a net zero.
Right?
So, so and then we don't know what's going to be available.
So it depends on where you are in places like Phenix, for example, where
there's been a little bit of a slowdown of new development, new construction.
It's going to catch up because the supply is not necessarily going to be there.
People are here, people are here, people are moving here.
So it's putting more demand on those things.
Yeah.
So bi so I think you you buy now or lease now because you don't know
what's going to be there later.
And we're seeing it.
We're seeing people that are selling their buildings.
We just recently we we were working with somebody
and they're selling their building and they needed
to find a space though when they sell because they wanted to now lease
and because they're kind of near the last few years before retirement
and the building went into escrow and there was no space that fit their needs.
So it was really a challenge and kind of a fear as to what happened. So
because of no new construction.
No, no.
And we have the same thing on multifamily because it's hard to zone build finance.
Construction costs
are high to build a new office buildings, especially small little garden ones.
Nobody's doing those. Right, right, right.
I wish they were, but nobody's building the five,
10,000 square foot office building.
It's a huge market if you guys, right?
Oh, absolutely huge market.
It hasn't been done for a long time.
And after the pandemic, there's not
only the need for it, but the desire for that.
We're sitting in one right now where you you to get out of your car, walk right in.
Yeah.
You know, there's and there's a lot my office is very similar.
Roberts office very similar to that.
It's that it's that pull right up in front of it and go in.
It's great.
Yeah, it's great.
And then when you want to
get on a phone call and walk outside, you can you want to walk to a coffee.
You can those little things.
Yeah, it's, it's, it's very light enough to get in the car and drive.