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Federal Realty Investment Trust CEO Don Wood on the outlook for commercial real estate.
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-- than expected housing data disappointed the market this week but.
We've got somebody who says there's a sector a portion of real estate showing signs of real success.
Ottawa federal realty in.
Investment trust CEO and president joins us -- out of Fox Business exclusive doctoral -- Just so that folks know how much Phyllis that you guys at nineteen million square feet it's a -- over fifty years David outfits that's -- -- a holding but it's.
But it's in places like new York and -- it really prime puts -- just in Detroit.
Earlier last week -- -- north of Detroit every half mile or so you have a strip mall one after the other after I don't know how many dozens there are there.
Every one very sparsely populated with consumers.
What's gonna happen -- strip malls well look you know it's I've never seen in my career of thirty plus years they've basically.
Such a difference between.
Did places that are doing really well.
And places which really are not doing very well and and frankly won't be for for quite some time it's not about in places like -- -- like Detroit.
And not -- -- Detroit but the specific Streeter whatever it is that you're describing.
It's hard for economically that to be any different.
Three years from now five years now seven years from now everybody in the neighborhood says -- let's do something better.
But it doesn't really work that way it's economics based you gotta be in the right location you've got to be in the right places and from that perspective.
You know I feel bad I'm senior sand.
If you would ask me how how are things things are really good for you yeah and the problem is that if your viewers sits there and and did things in their area are not really -- -- who is this guy and why in the world Z is he saying that.
On what you're saying really is that there is almost a split the areas that are doing well are those the coastal regions in our New York LA and some of the bigger cities and -- the ones that aren't going well and that would be the I don't the -- that.
Kentucky's the Missouri's of the world.
You know real estate is a very very local business it is today it was yesterday and it will be tomorrow.
But I will -- in my career I have never seen that split.
As wife -- between the haves affect women have nots and again business is doing very very well -- why.
Most investors today.
Are really risk averse and and that means they they will invest there is certainly money out there there is certainly an investment capital and -- very plentiful frankly.
For those places where where an investor feels like he doesn't have a lot of risk and then -- investor will take a lower return in those places.
But that investor has yet to say wall okay I'm ready to go up higher on the -- risk spectrum and try something like the the locations that you're you're describing because.
Who knows where we're going to be over the next 345 years and again.
That is keeping money out of the system now you're clearly not having trouble raising capital you've just issued some debt that school graduation died about 250 million dollars -- -- raised 250 million dollars and a 3% to coupon.
Which is the lowest coupon ever.
In the history of reads let's just run discount again it states that split that we were talking about a moment ago they're they're planning of people out there -- in real estate and other business right -- How do you get the credit it how do you do it -- -- we've been around for fifty years and think about this we have increased our dividend to shareholders federal realty has.
Every year since 1967.
That's 45 years that's a lot of real estate cycles of up and down.
When you have a track record like that -- we have a track record like that because we have bought and operated in the best places around the country.
When you can produce like that didn't -- capital and you get capital -- -- effective rates but the track record is more important today.
Than it's ever been before that's what's different today than 2006 and 2007.
There's much more discerning capital out there.
While it's on it's good to hear your story here commercial real estate everybody's to say this is that the next leg to ten.
-- -- -- -- You have to be more all you have to more carefully this election it's all about location location location that true for the big guys in the -- -- it is -- great to see you please come back this is exactly.
