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00:00What I see driving around New York and frankly driving around America are empty commercial space and you say well it's because of Amazon it's because of digital. Obviously it's a pandemic as well. Why aren't the rental prices of that space coming down. Yeah I know it's a great question. And good morning. Look I think that in commercial real estate broadly there has been a story of winners and losers and contrary. Now we focus on asset classes. We think we'll be resilient. Frankly that we saw accelerating even pre coded. And so we focus on multifamily industrial and selectively office. To your question office assets and vacancies. Look I do think that the calls for the office market being dead were overblown but there definitely will be assets that are distressed and stressed specifically those where the landlords are unwilling to put in the work to create greater amenities and to create greater comfort for the tenant base and the like. And so I think a lot of the assets that you're seeing are properties that frankly are either in flux right now because ownership isn't willing to invest to ensure that those properties are highest quality and market or you know their properties that are being converted which is another pretty tremendous opportunity converting office to life sciences for instance or retail to industrial space usage. So that's where we see the opportunity those ability to be adaptable flexible and investing quality. Lisa Ryan has the move to the Sunbelt bit overdone. Another great question. We don't think so. We've actually been investing in the Sunbelt for about six years now. So Perry Cove it you know we employed not just the institutional investor approach to selections of markets that we think will be out performers but we also use data science to really wanted to be differentiated elements of CAC. And so we've been focusing on markets that we've seen as affordable and high growth for a while. We think that you know markets like Phoenix Charlotte North Carolina Tampa Florida Orlando all markets where we have a large presence actually still have a lot of runway because the relative affordability. With that being said there will be some saturation in many of these markets and we're aware of that. And so we've started to already look for our next contract 15. But as long as there's good affordability good job growth good access to you know many years I think that you'll continue to see folks moving pretty base and out of the urban core and centers into many of these markets. We're still affordable. I apologize to cut in here but this is a really sensitive and very important question that I keep seeing asked. How much has institutional investing pushed out individual real estate investors in some of these regions. You talk about the affordability. How much has the institutional push change that dynamic. Significantly it's frankly one of the founding principles of pottery. When I started the business in many ways because I believed that individuals and institutions should be able to invest alongside each other there should be greater parity. I saw firsthand that many communities that were being invested in by institutions were changing overnight. People don't know their neighbors anymore. They didn't know their communities anymore. What we've been able to do at colleges but a platform technology enabled platform where individuals can invest their NIKKEI institutional real estate. We're going to run out of time here. And what we're talking about here is a third rail for our listeners and viewers. Steve Schwarzman is going to pony up a good billion dollars at least one billion to buy 4000 homes. I can't remember the number as well. Fancy guys like you are taking over the housing and rental business. When does that. Yeah. Yeah. Well first off I went to some fancy game from Baton Rouge Louisiana. And you know I grew up not owning real estate again which is why I want to break out of the institutional world to start a platform like CAC to level the playing field. But I think it's going to end when there is greater awareness that the current model is not sustainable. That there has to be greater access and focus on economic inclusion and more broad. I just couldn't believe that the politicians of the market. I think you'll see a little bit of both. Unfortunately or fortunately depending on which side you're on. But I think there has to be greater economic inclusion. There has to be a focus on the community that you're investing in the impact that you're driving for that community. And it can't just be about profit. It's got to be it is profits purpose. Otherwise you'll see a lot of the unrest that we've seen frankly over the last couple years might arise again.

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Where and How to Invest in U.S. Real Estate

Cadre CEO Ryan Williams discusses where he sees best value and potential across US real estate assets, and how Cadre democratizes real estate investing. He speaks with Tom Keene and Lisa Abramowicz on "Bloomberg Surveillance." (Source: Bloomberg)

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