This is an IHeart podcast.

Guaranteed Human.

Let's say if someone sees an opportunity in L.A. or Detroit and they want to get a group of

investors together, what steps would you have them take to make sure that they are buying

the right area and that that building will actually be a success and they won't go into debt

by trying to acquire a property while the commercial

real estate market is now. Well, I think they've got to look at what the other uses are. So,

for example, in a office building market, vacancy rates at, you know, 10% or below mean that's a

healthy office market. There are very few markets in the country where that's the case. Miami is probably one of them. Miami Beach is the second one. I think there are very few like that.

So then you look at what are what's the apartment vacancy rates and the apartment vacancy rates,

what are they running? And if they're running, you know, vacancy rates on the apartment side,

that is, you know, maybe somewhere in the neighborhood running, you know, vacancy rates on the apartment side, that is, you know,

maybe somewhere in the neighborhood of, you know, 5% vacancies, and that's a healthy market.

And in places like New York and D.C. and even Miami, to a degree, these vacancy rates are

even less. So New York's vacancy rate is less than, you know,

2%. So that would mean it's very conducive to having new apartments. And then once you look at

vacancy rates and you look at rental rates. And if the rental rates, you know, can support

the acquisition and the conversion of a new building, then it makes sense to do

because you've got strong rental rates that are supported financially and vacancy rates are low,

which are showing significant demand. And same thing with hotels. I mean, you can look at

converting office buildings in the hotels as well. And so, but these conversions are not for inexperienced people.

So they've got to make sure that they get a contractor that understands conversions,

...