You've got a big new advance in your strategy about commercial real estate
down there. Talk to us about one Brickell City
Centre. Well, we're very excited to be here in
Miami. Miami is probably the most dynamic city
in the country today. You know, when you look at statistics of
where growth is occurring. Miami leads to a.
South Florida leads the way. And so being able to develop what we
believe to be the biggest building in Miami at a location that's main in Maine
with all the technology and all the things that related puts in their
buildings. And I think, you know, people were
looking to be a tenant in a related building today, as evidenced by our
success in New York and Hudson Yards, which really continues to grow as well.
Now, obviously, you're very big in West Palm Beach.
This is Miami we're talking about now. How does it fit into your long term
strategy? What comes next?
Well, I mean, right now.
I mean, we're continuing to build in New York and we're very excited about New
York. But Florida is really the growth, you
know, part of the country today and where there's no need for class, a
office space. It really needs.
And it's more than just delivering office space.
It's really, you know, building communities, building cities and making
sure that those cities have the hospitals, bringing schools and all the
amenities that new tenants want to want in relocating to Florida.
Has the situation with interest rates slowed you down at all?
Mean you talked about Hudson Yards in New York.
You've got development down in south Florida.
We had somebody actually you know somewhat about commercial real estate on
Bloomberg recently, Josh Freeman, who said there's some carnage going on in
parts of commercial real estate. Are you experiencing carnage?
No, we're not experiencing carnage, as a matter of fact.
Tennis today are looking to find classy office buildings that are new that
embody all the latest technology and where people want to work.
I mean, it's really the Class B buildings where the carnage will take
place. So Holly's Hudson yards going, are you
having problems with people pulling out, pulling back and Hudson yards?
No, just the opposite. I mean, we are really experiencing a lot
of activity, about 10 yards, corporations looking to grow, relocate
there because we really offer a very unique type of product.
We're part of a mixed use product. We're restaurants.
It's very safe. It's easy to get to.
And the buildings are the highest quality in New York City.
So we've been very fortunate there that we have a lot of activity.
And, you know, almost monthly we're announcing new leases.
We've done over 11 million square feet already in a short period of time.
I mean, you know, when you look back at it, we started at Hudson Yards.
We before we even finished. And it was built what was considered a
wasteland. We are now before you opened up, I
should say. We were getting the highest rents in New
York City. So it's really an area that attracts the
best of the tenants because that's where their employees want to work.
Steven, let me ask the question the other way around.
Valuations and a lot of these properties are coming down because of the interest
rates and some of the tightening of credit.
Does that present an opportunity for you related?
Are there buying opportunities right now?
Some of the prices are coming down. Well, I mean, you know, today I'm sure
the prices are coming down dramatically. You know, it was advertised last week, a
large office building in San Francisco was trying to be sold in 80 percent of
its former value, you know. And your question is, what is the
market? I mean, once the building is kind of not
considered worthy of tenants wanting to be there, you know, what is the value?
They don't really convert well to residential.
So you're going to see a lot of carnage in class, a older class 8 buildings as
well as the Class B market. You know, we've got to get people back
to work. They want to go to a place.
I mean, today, I believe that corporations are going to insist it's a
question of time till they have people working at least four days a week.
So, Stephen, let's make a turn here to sports you in the Miami Dolphins.
You you are hosting the Formula One race down in Miami this coming weekend,
actually. Give us your sense about the F1 races.
It's gotten very popular in nine states right now.
How does the money work? Do you make money off of this?
I mean, no. No.
It's centered at your facility down there.
Well, I would hope so. I mean, yes.
But, you know, when you own a sports team, you're really doing something to
really enhance the community, to bring it together.
It's about the economic development opportunities that arise throughout the
whole area. And certainly South Florida benefits.
I mean, we are making money on the race, but, you know, we own a sports team.
It's a responsibility you have to the community to really benefit the
community, bring it together and create that economic development.
And there's nothing bigger in Formula One today.
I mean that Netflix or the drive to survive has really got America very
excited about Formula One. And we'll have close to
hundred thousand people this weekend. What is done for South Florida from an
economic development standpoint is incredible.
I mean, it's hundreds of millions of dollars of additional activity.
Stephen, fine. Let's come back to telling you and I
talked about it for Detroit. I come from Michigan.
As you know, you've announced some plans there to really expand into Detroit,
particularly with the University of Michigan, some of what's going on.
Where are you in those plans? Well, we're about to announce are our
first tenant and beginning this year of our first office building to be followed
by the University of Michigan Innovation Center.
That really will act as a catalyst to bring jobs and and really bring back
downtown Detroit.