To discuss this boom in Florida is billionaire real estate developer George Perez. George, who's the founder, chairman and CEO of the Related Group, has been at the forefront of South Florida's evolution for over forty years. And George, let's start right there. Let's start with the president elect. It's not just the President elect. It's also the red wave
you're seeing. But certainly when you think about the Winter White House over in mar A Lago, how much more interest are you now seeing in Florida since the election?
Well, you know, President Trump is a Florida resident. I think a lot of his friends, you know, are in Florida. I think he's a real estate was a real estate developer, his family still in the real estate development. I think he understands what real estate in particular needs to be successful, which is lower interest rates, lower inflation rates, so people.
Feel confident of buying.
The effect in Miami think is going to be positive, but we go way beyond as opposed to other cities or the national economy.
I just came back from London and Madrid and.
The desire for people to own a place in Miami as a second home or actually moved thinking of moving when they get to be a retirement age is immense. You know, my two sons are in a trip to South America, Argentina, Brazil and Mexico.
Who are the demand for real estate.
In South Florida is intense.
And as we know, and you mentioned in.
Cities like Chicago and New York, we're seeing we're still seeing a huge demand for people not just wanting to live here, but moving their businesses here, which is the first time that has happened to South Florida. So instead of just becoming sun and fun, we are becoming a serious city.
Well more than a serious city. You think the business aspect alone, and I'm going to ask you to speak for the business community here for a moment. When you think about the president elects policies, because some of them could significantly impact different industries, even yours. You think about the immigration policy, for example, a lot of the building environment in the United States has relied on an immigrant workforce.
How do you think that policy in particular might impact your business moving forward and others around you.
Well, look, it's a big concern, you know, it's a big, big concern. You know, in Miami a lot of our construction workers are I would say maybe eighty percent of our constructional workers are Hispanic or more, and we don't check to see if they are legal residents or not. They're employed by our subcontractors. But I give you a little fast anic thought. In Jacksonville, when the governor announced that they were going to be checking on to see
if you legal, if immigrants were illegal or not. The next day we went to the job and everybody had disappeared for our construction job in Jacksonville and had gone to I don't know if to South Georgia or someplace. So we we very much depend on immigration to run our industry.
I think that the stance that some of the more.
Fervent opponents to immigration is going to quiet down. I mean, the United States needs a continuous flow of these immigrants to fill a lot of jobs. So do we need to do it legally? The answer, of course is yes. Do I think that we're going to take all the illegal immigrants in the United States that have been here for many years doing legal work, productive work? I think the answers, of course, know you know that would that would make that would make it into a police state
with people checking identifications. I can see myself, because of the name Peres, to be stopped in the street asking you for.
An identification card.
So I think we need to quiet down, you know, this rhetoric and come to a understanding because immigration has made this country and will continue to play a big role in the development of this country.
Yeah.
I just think it's fascinating George, because of course, at the Republican National Convention, the most visible signs that his supporters were holding up said mass deportation, and that's been a part of his campaign pledge to the American people who elected him. On the other hand, I mean, just think about how much labor costs would soar if you eliminated the what eleven million immigrants who are here illegally. It would just be impossible for you to continue to conduct business, I imagine.
So, and most people need to see that, right, we have a place and ask, and I can tell you that ninety five ninety eight percent of all the people that are in the restaurant business and the hotel business, the the in the construction business are immigrants.
I would say that a lot of those might not be legal.
That are coming to this country for the opportunity. I just cannot see what would happen. You know, if that was stop. First, the salaries would have to be increased tremendously because there's not enough to supply, you know, to meet it. And then of course it would have repercussions on inflation and so forth. So I think when quieter, you know, smarter minds get together, I think they're going to really understand this. I think the economy is the most important thing, and I am hoping, you know.
Trump is now our present.
So I think, whether you agree or disagree, we need to all gather behind them and try to do what's for this country.
Have for this country.
We have been in a period that people don't talk to each other, you know, extremes have become more popular. We need to become much more heading down the middle, listen to each others, to each other's ideas, and make the best out of.
A better solution, you know, to do this.
And I think this goes not only for immigration, and goes to health policy, environmental policy, and so forth. We go seem to go from extreme to extreme, and I am searching for that middle ground.
George, what about you know, speaking of the different policies also trade policy, because it's pretty clear that the right part of the Republican Party, the further right you go, the more protectionist it gets as well. And are you very concerned about what trade policies could look like, particularly when it comes to your business and business in Florida. I mean, you know a lot of people rely on not just foreign workers, but importing material.
Well.
See, look you've seen what you know, what happens when the supply chain is disrupted, particularly in my business during COVID, for example, the the the supply chain was totally busted.
We couldn't get all the prime.
Materials that we wanted, and construction costs you know, exploded. That has passed on to the consumer. You know, nobody builds a building to lose money. So I am very much anti isolations. I think in a in a free market, in a fair free market, I think that there's some things that we can't produce effectively that we need.
To purchase from abroad.
And our technology and the things that we do better, you know, because we have such an advanced you know, country, are the things that we should be concentrated in. And that all requires a free chain, a free change of product, services and so forth between the most efficient producers of whatever it is that you're producing. So, you know, televisions today are coming from you know, many different parts today. To build the whole television here would be you know,
impractical and extremely expensive. So you know, things like this, I think are you know, everybody knows this, you know, so I want sentiment, you know, to take a second place to logic and see what we really need, you know, to Expand you know, we are in such a position both in and all in the United States, but particularly in South Florida, that we really are attracting the whole world,
you know, to come to this. This means growth, This means production, this means employment, you know, and we need to take advantage of that opportunity, just like we're doing in South Florida. Our market in South Florida, we're opening more condominiums, both luxury and middle class.
Than ever before.
And they're all being consumed and they're being consumed by both cities from you know, older cities, both from California and the Northeast and from South America. We have a huge South American market that wants to come here. And now Europeans are starting to show, and we need to tell show them that we are a stable economy, that we're all going to be and gather for the President of the United States that this is one country for all. So I hope extremes disappears as much as possible.
And George, I want to ask about something less contentious, although for us, you know, interest rates is usually all we talk about.
It's plenty of content What do you.
Think about the raids market right now? I mean, the Fed was on track to cut raids down to some people thought three to three and a half percent, is what John Paulson told Shanali a couple of weeks ago. Now it looks like the market is expecting far less aggressive cuts and maybe if these policies are inflationary, they'll stop completely next year. How much does the real estate industry need those cuts?
But we need those cuts badly, right, Remember, there's a huge number of real estate that has been financed construction and permanent at floating rates, and those floating rates of Now, if you build a project and you bar at three percent and now you're paying eight percent, I don't have to tell you what impact that has, particularly if you've overpowered, right so there's a lot of people hanging that are
waiting for, you know, interest rates to go down. I think the Fed you know, make the right decision on the fifty basis point. I thought we were going to get another fifty bases points. I think they're looking very closely at inflation. In my opinion, I think inflation has being controlled. I expect further cuts.
Next year.
I never thought we were going to get three to four percent cuts, so I think it's going to be it's going to be less pronounced, but I.
Believe that we will continue to see cuts and will continue to see an increase in demand based on people's able to afford you know, more.
Re state because of the interest rate costs.
But I do not see you know, a two or three percent interest rate cut anytime soon.
Hey George, we got to go because of the clock, but I hope next time you're in New York can get here in the studio. It's been great talking to you. George Perez, there is the CEO of the Related Group.