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Federal Realty Investment Trust CEO Don Wood on why he has a positive outlook for the commercial real estate market.
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New housing starts fell 3% in November from the previous month but according to our next guest there is a segment of the real estate world the commercial real estate area.
That has really been moving full steam ahead and will do so he says into the new year joining us now out of Fox Business exclusive dot glad.
Federal Realty Investment Trust CEO and president our -- I mean look it.
-- the number that we got today and housing it looks like the housing market is either bottoming are starting to move up off the bottom so that's good news but.
You uncommonly bullish about your realm and that is commercial real estate tell -- why what's at the heart of why you feel a lot better about things today.
I am Liz you know -- it's so funny I I I can't really even explain it but but consumers continue to consume.
And my business in the retail side of of commercial real estate and when I look at -- People shopping traffic counts in our in our shopping -- -- Bomb I don't have numbers on purchases Janet won't have mental next month.
But traffic is up people are out there retailers are doing deals so you know I think everybody's kind of looking through the fiscal cliff I hope they're right.
Depends on the day but but I think people are pretty optimistic in terms of you know what -- -- will bring.
Your publicly traded ticker symbol FR she you've got about twenty million square feet but -- equals out to be about 86 properties in the shopping malls that you do have.
Tell me Don you know what are the anchor stores -- you're saying traffic is looking really good what's drawing the crowds.
-- the number of things first though we're not malls and -- -- open air shopping centers and I and I am talking about it's important to understand the -- the main coastal markets in the country so.
Boston through Washington DC on the East Coast northern California Southern California.
On the West Coast a little bit in in Florida to.
An end in in -- the great quality com.
Outdoor shopping centers what we're seeing our our you know tenants like Bed, Bath & Beyond tenants attendance.
-- -- restaurant traffic health club traffic.
That really it's quite robust generally in those in those areas and that has been the case through most of 2012.
Markedly higher than -- we founded in 2011.
Including the amount of deals that those retailers you know want to -- leases that they wanna sign for the future -- It you know will see about 2013 from the standpoint of of whether this comprehensive tax or tax reform lots of things that are still certainly up in the air but right now.
Most retailers both -- seemed to be looking through that so.
Are you investing I know you're -- -- a property but argue are you looking at.
Even newer properties building -- me tell me what your action is you're taking your capital putting it to work.
We're doing a lot we're gonna realize we've not we've got enough 500 million dollars today under development in in three primarily major locations.
One just outside of Boston in Somerville Massachusetts one just outside Washington DC in Rockville Maryland.
And also -- large project that we're continuing to build on out in Silicon Valley and -- in San Jose.
So -- with more to come after that so from a development perspective.
I think we are one of the few a few retail companies that are building new mixed use product that's residential -- office on top of retail.
In those locations where that is that demand is -- where where it it's necessary to happen.
In addition to that -- buying.
And will be announcing shortly -- hey -- another acquisition.
That that should close here in the next few days so when we find great quality real estate where were willing to put our capital work.
-- the stock is up about 16%.
Over the past years so -- we see a lot of these company odd couple percent that's great -- it'd be the market you know you're matching the -- -- done extraordinarily well.
During what could be perceived -- -- challenging circumstances but let me just throw -- the obligatory fiscal -- question I know -- just kind of reference to but.
If we don't get a -- are you worried that that will worm its way into the psychology of the very shoppers.
And the consumers that have been really floating.
Your -- are absolutely absolutely I am I mean there is no question that that that.
Much of -- much of the business of of business is about people on -- about what those people believe over the next year to -- Right now they're assuming that that I believe that there assuming that that that -- will avert the cliff.
Obviously if that changes it's a it's a different situation will be a different situation quickly.
Don glad Federal Realty Investment Trust CEO president let us know what your deal -- -- -- look to hear what it has.
You will have promised tightening that we want those announcements David dealt with personal Baidu India would you always get it first on Fox Business -- --
