Miami Hasn't Even Peaked Yet, Sternlicht Says

You mentioned return to office. It wasn’t that long ago. It wasn’t returned to office in New York. It was just leaving New York altogether and moving to Miami. Have we seen peak Miami for the time being? Because there was a time that everyone was rushing down there with their employees and they said, and now you hear maybe not so fast, they’re coming back a little bit. Miami has an issue because of schools. It doesn’t have enough schools and that that’s probably the reason Miami slowing. But Amazon just announced they’re moving 50,000 for taking 50,000 feet. There are a lot of companies that would move down if they could get their employees kids into schools, which is impossible so. You got to be very bullish on Citadel, which obviously left Chicago. I mean, they alone have decided they’re going to make Miami into the financial capital of the United States and they have the power to do that. Ken. Ken is very philanthropic and he’s moved a lot of 1500 people into the market. Affects the housing market. We still we’re waiting. I mean if I was really smart, I’d just buy all the houses in Coral Gables and and sell them to the Citadel employees as they move down. I don’t think Miami’s peak. I think we Miami and Florida have sort of cycles because they get over built but they’re ever higher cycles. You just have to have stamina and stay with it. The housing market, you know a $4 million house became a $10 million house and now it’s an $8 million house, but it’s still twice what the guy paid for it four years ago. So and really good stuff. I mean recently Barry Diller moved down, Jeff Bezos has moved down. It’s I anticipated the climate. You know that obviously the weather is better. I still in the winter I anticipated the tax savings and obviously for the darkest blue states its material. I didn’t anticipate how welcoming the state is to business and how success is is actually applauded not vilified. So I think for businesses that’s that’s a nice thing. The state wants you to succeed and they want to attract business and maybe the blue states. I mean the governor of Florida said, I guess he got on a phone call with the governor of New York and said you know stop taking my people. He says all he says every time you talk I get another tenant, so. You know, every time they try to chase, I look at these two states, New York and California, we’re sitting in California. They have massive budget deficits, massive. So they have to cut services or raise taxes. Florida, Texas have massive budget surpluses. So they’re in a positive flywheel. They’re spending money to improve their infrastructure in schools and universities in the the dark states. Dark blue states are finding that in order to provide the social services that they want to provide, they’re chasing the wealthy out and they can move. They’re not tied to trees in these states yet. So not yet. But I don’t think, I think Florida is on A roll. It will slow down and and. There’s an affordability issue. I mean, rents have risen pretty far. They’re gonna over build it. No, I mean they’ll be over building in my I mean there’s always been over building. It’ll come and go, you’ll buy it stuff cheap and then there’ll be another cycle. It’s the real estate world.