>> A LOT OF THE DIFFERENT FUNDS HAVE COME OUT NOW, AND THEY'RE LATE ON THEIR MORTGAGE PAYMENT TO LENDERS, AND THAT'S NOT A GOOD SIGN. I THINK IT'S GOING TO BE A BIT OF A BLOODBATH BEFORE IT GETS BETTER. LIZ: YOU HEARD IT RIGHT HERE, ALARMING WORDS. WELL, WHEN YOU SAY BLOODBATH, THAT'S PRETTY ALARMING. BARBARA CORCORAN ON COMMERCIAL REAL ESTATE, SHE WAS RIGHT HERE SAYING THAT, AND HERE ARE SOME NUMBERS TO PROVE IT. THIS CHART SHOWS OFFICE VACANCY RATES HITTING AN ALL-TIME THE HIGH. YEAH, YOU HAVE TO GO BACK TO THE ABOUT 202010, AND THEN THE IT JUST -- 2010, AND THEN IT JUST NUDGED RIGHT ABOVE IT. THIS NEWS DOES NOT POINT TO THIS CHART REVERSING COURSE ANYTIME SOON. IN ADDITION TO JOB CUTS, META JUST ANNOUNCING IT WANTS EMPLOYEES TO RETURN TO THE OFFICE BUT ONLY FOR THREE DAYS A WEEK, RIGHT? IS JUST LIKE AMAZON, WHICH MEANS NOT AS MUCH OFFICE SPACE WILL BE NEEDED. ADDING THE RESETTING OF LOANS BUILDING OWNERS TOOK OUT WHEN RATES WERE MUCH LOWER, AND THE PICTURE IS LOOKING WORRISOME. BUT WHERE SOME SEE CAST -- DISASTER, OTHERS SEE AT LEAST THE START OF OPPORTUNITY? LET'S GET TO THE MAN WHO EARNED GREEN DOING JUST THAT. SELF-MADE REAL ESTATE BILLIONAIRE JEFF GREEN JOINING US IN A FOX BUSINESS EXCLUSIVE OF. JEFF, YOU HAVE MADE YOUR FORTUNE WAITING FOR THE RIGHT MOMENT WHERE THINGS LOOK CONCERN WELL, TO USE BARBARA'S WORDS, THE BLOODIEST. ARE WE THERE YET IN COMMERCIAL REAL ESTATE? >> NOT EVEN CLOSE. I MEAN, WHEN YOU THINK ABOUT IT, LIZ, LOOK, WE HAD THE MOST AGGRESSIVE FISCAL AND MONETARY STIMULUS IN HISTORY, AND WE'RE STILL LIVING OFF OF THAT. PEOPLE HAVE RENTED OFFICE SPACE BECAUSE THEY WERE GETTING EXTRA TRILLIONS AND TRILLIONS AND TRILLIONS OF DOLLARS IN THE ECONOMY THAT WERE PUMPED IN THE LAST FEW YEARS. THAT IS STILL IN THERE. THAT'S GOING TO TRICKLE DOWN NOW. LIKE I'M A BUILDER, SO I'M BUILDING TWO 30-STORY TOWERS HERE IN WEST PALM BEACH. THERE ARE 400 PEOPLE WORKING THERE TODAY TO. WHEN HOSE THE BUILDINGS ARE DONE, THERE WON'T BE WORK FOR THOSE PEOPLE. THAT'S GOING TO THE TRANSLATE TO THE A BIG ECONOMIC SLOWDOWN. SO WHAT'S HAPPENING IN OFFICE SPACE TODAY, THIS IS BEFORE THE SLOWDOWN. WAIT UNTIL WE HAVE THE RECESSION. LIZ: WE ARE SHOWING SOME VIDEO OF WHAT I BELIEVE -- DO WE HAVE THAT VIDEO OF HIS PALM BEACH -- YOU'VE GOT TWO 30-STORY OURS IN WEST PALM BEACH, IS IT? THESE WILL BE THE HIGHEST BUILDINGS IN THAT AREA RIGHT NOW. WHEN IS IT SUPPOSED TO BE DONE? BECAUSE WHEN YOU SAY -- >> OH, THERE YOU GO. YEAH, THAT'S THE GYM WITH THE INDOOR POOL. ISN'T THAT BEAUTIFUL? LIZ: YOU'RE CALLING IT THE GREENE HOUSE. >> YES, LOOK AT THAT, THAT'S THE INDOOR TENNIS COURTS. LIZ: OF COURSE YOU WOULD HAVE THAT BECAUSE YOU'VE TO GOT TO HAVE THOSE FEATURES. ARE YOU WORRIED YOU WON'T BE ABLE TO FILL THESE SPACES? >> THAT'S THE GAME ROOM. LOOK AT THAT WITH THE BOWLING ALLEY. LIZ, THAT BUILDING, THESE TWO TOWERS ARE GOING TO BE THE BEST BUILDINGS IN THE MARKET, SO THEY'RE GOING TO BE A CATEGORY KILLER. WE HAVE ONLY 200,000 FEET OF THE BEST OFFICE SPACE WITH BIG OCEAN VIEWS AND, YOU KNOW, THERE'S MILLIONS OF FEET OF OFFICE SPACE, SO WHEN YOU BUILD THE BEST, NEWEST ONE, YOU'LL GET THE TENANTS. THE PROBLEM IS THE OTHER BUILDINGS ARE GOING TO LOSE THEM, AND PEOPLE ARE GOING TO BE SPACE NOW, COMPANIES ARE GOING TO BE CUTTING BACK. THEY'RE GOING TO BE THE REDUCING SPACE. HOW ABOUT WHEN A.I. STARTS TO KICK IN? WE'RE IN THE EARLY STAGESES OF THAT, THAT'S GOING TO BE A SLEDGEHAMMER TO WHITE COLLAR JOBS. LIZ: OKAY, SLEDGEHAMMER TO WHITE COLLAR JOBS BUT, AGAIN, YOU'RE THE GUY WHO HAS BEEN ABLE TO SCOOP UP GREAT PROPERTIES WHEN THEY WERE DOWN IN THE DUMPS, DOWN IN THE DREDGES OF, OH, THIS IS NEVER GOING TO COME BACK. I MEAN, YOU WERE MANY LOS ANGELES. YOU KID THAT EXACT SAME THING BACK IN THE DAY. WHAT SIGN WILL YOU BE LOOKING FOR THAT TELLS YOU NOW I'M GOING TO THE INVEST? >> WELL, I THINK WHEN, YOU KNOW, WHEN EVERYBODY AGREES THAT IT'S HOPELESS AND IT'S THE NEVER COMING BACK AND THAT THERE'LL NEVER BE ANYONE IN AN OFFICE BUILDING AGAIN BECAUSE PEOPLE JUST DON'T USE OFFICES ANYMORE AND THERE'S NO HOPE WHATSOEVER, THAT'S THE TIME YOU HAVE TO GO IN. YOU KNOW, WHEN EVERYONE ELSE IS GREEDY, YOU'VE GOT TO BE -- IT'S NOT RIGHT NOW. WE'RE NOT IN A TIME OF DISTRESS NOW. PEOPLE HAVING ISSUES, BUT YOU DON'T HAVE FORECLOSURES, YOU DON'T HAVE PEOPLE NOT MAKING THEIR PAYMENTS IN A BIG WAY. WE'RE JUST IN THE EARLY STAGES, BUT I THINK IF THIS ECONOMY SLOWS, YOU'RE GOING TO START TO SEE SOME REAL PROBLEMS WITH PEOPLE BEING ABLE TO, YOU KNOW, PAY THEIR LOAN PAYMENTS AND TO REFINANCE THEIR LOANS. LIZ: YOU'RE ALREADY SEEING THAT, JEFF. CERTAINLY, WHEN THE LOANS ARE RESETTING, BROOKFIELD, FOR EXAMPLE, HAS SEVERAL BUILDINGS THAT HAVE EITHER BEEN BRUSHING UP AGAINST FORECLOSURE, ARE IN IT RIGHT NOW, HAVE HAD TO BE SENT BACK TO THE BANK BECAUSE THEY'RE DEFAULTING, AND YOU LOOK AT SOME OF THE OTHER SITUATIONS WHERE, YOU KNOW, THE 10-YEAR YIELD, FOR EXAMPLE, 30-YEAR, 10 IS-YEAR HAS BEEN SO MUCH LOWER, MUCH HIGHER NOW. SO WHEN THOSE LOANS START TO RESET, IS THAT GOING TO BE THE TRIGGER FOR A VERY UGLY DOMINO EFFECT? AND YOU DON'T, BY THE WAY, LET'S CLARIFY, YOU DON'T HAVE DEBT. YOU DON'T BORROW MONEY TO BUILD THESE BUILDINGS, RIGHT? >> I DON'T HAVE ANY PART OF INVESTORS OR LOAN ON MY PROPERTIES. THAT GIVES ME -- THAT'S THE REASON I CAN KEEP SMILING. AT THIS POINT IN MY LIFE, I DON'T WANT THAT KIND OF PRESSURE, SO I JUST DO WHAT I CAN HANDLE OUT OF MY CASH FLOW. I CAN TELL YOU THAT MOST PEOPLE IN THE MARKET TODAY HAVE NOT BEEN IN THE MARKET, HAVE NOT BEEN AROUND THAT LONG. AND SINCE WE HAD DOT.COM BUST IN 2002, WE'VE HAD ARTIFICIALLY-DEPRESSED INTEREST RATES, SO PEOPLE HAVE NEVER HAD THIS EXPERIENCE OF RATES GOING UP. AND I CAN TELL YOU I'VE SEEN PEOPLE ALL THE TIME WHO ARE PANNISHED BECAUSE -- PANICKED BECAUSE THEY'RE THINKING HOW AM I GOING TO PAY OFF MY CONSTRUCTION LOAN WHEN MY APARTMENT BUILDING IS DONE WHEN RATES ARE GOING UP AND RENTS ARE DROPPING? I THINK YOU'RE GOING TO HAVE NOT JUST OFFICE BUILDINGS, PEOPLE AREN'T GOING TO BE ABLE TO PAY OFF THEIR HOME LOANS OR A APARTMENT BUILDING LOANS. WE ARE HEADING INTO A FRIGHTENING TIME IN THE ENTIRE REAL ESTATE INDUSTRY. LIZ: THAT SAID, TELL ME WHAT YOU'RE SEEING DOWN MANY PALM BEACH. OBVIOUSLY, FLORIDA HAS BEEN THE GIFT THAT JUST KEEPS ON GIVING FOR ANYBODY WHO IS A SELLER IN THIS MARKET. IT LOOKS TO SOME BUBBLISH. I ASKED BARBARA CORCORAN, SHE SAID THAT'S NOT A BUBBLE, NOT IN FLORIDA, NOT RIGHT NOW. >> I THINK WE'RE GETTING VERY OVERBUILT IN A LOT OF CATEGORIES HERE, NO QUESTION ABOUT IT. THE PEOPLE WHO CAME HERE WERE GOING TO COME HERE. BASICALLY, THE FEEDER CITIES TO SOUTH FLORIDA -- NEW YORK AND PHILADELPHIA AND BOSTON THE, CHICAGO -- WHEN YOU HAVE A PANDEMIC, YOU HAD TO SHUT THOSE CITIES DOWN BECAUSE SUBWAYS AND HIGH-RISE BUILDINGS. THEY SHUT DOWN AND AT THE SAME TIME YOU INVENT ZOOM AND TEAMS, AND PEOPLE THAT WERE GOING TO COME HERE IN 2023, '24, '25, '6 THE YOU KNOW WHAT? THEY ALL CAME AT ONCE IN 20 THE 21 AND '22. SO THEN WHAT DOES THAT DO? IT CREATES AN ENORMOUS AM OF ACTIVITY THE, IT CREATES TREMENDOUS DEMAND IN A SUPPLY-CONSTRAIN THED MARKET. PRICES GO THROUGH THE ROOF, AND A LOT OF VERY NAIVE PEOPLE THINK THAT'S THE NEW NORMAL. IN FACT, NOT ONLY IS IT NOT, A LOT OF PEOPLE THAT WOULD HAVE BEEN COMING NEXT YEAR HAVE ALREADY COME HERE. SO I THINK WE'RE GOING TO HAVE INWARD MIGRATION'S GOING TO SLOW DOWN A LOT. THE OTHER THING WE HAVE YOU NEVER HAD BEFORE IS A LOT OF THE PEOPLE THAT WERE COMING HERE BEFORE, REMEMBER, THEY WERE COMING IN 20121, '22, THEY COULD SELL THEIR HOUSE IN CONNECTICUT AT A NICE PRICE AND THEN BUY A CHEAPER HOUSE HERE WITH A 2.5 LOAN. NOW HE WAS TO SELL THE HOUSE IN GREENWICH THAT HAS A 2.5% LOAN AND BUY ONE HERE THAT'S MUCH MORE EXPENSIVE WITH A 6% LOAN. SO WE'RE GOING TO HAVE A LITTLE BIT OF A SLOWDOWN IN DEMAND, AND I THINK WE'VE CREATED AN ENORMOUS AMOUNT OF SUPPLY. I LOVE FLORIDA. BULLISH AS ANYBODY. BUT, YOU KNOW, WE'RE GOING ON THE HITTING A BUMP IN THED ROAD NOW. LIZ: AS A BUSINESSMAN, YOU'VE GOT TWO FLORIDIANS RUNNING FOR PRESIDENT, DONALD TRUMP AND RON DeSANTIS. [LAUGHTER] RON DeSANTIS CERTAINLY PULLED AWAY THE WELCOME MAT FROM DISNEY. HE'S BEEN ATTACKING THEM. IF YOU WERE FORCED TO PICK BETWEEN THESE TWO -- WELL, I GUESS YOU COULD ALLOW MANY IN PRESIDENT BIDEN BECAUSE HE'S DEFINITELY THE DEMOCRATIC NOMINEE, NOT NOMINEE, BUT HE'S THE ONE WHO'S OBVIOUSLY SAID IN AND HE'S GOING TO RUN, IS THERE ONE BETTER THAN THE OTHER AT THIS POINT FROM WHERE YOU STAND AS A BUSINESSMAN? >> WELL, AGAIN, I WOULD STAY THE WITH PRESIDENT BIDEN BECAUSE, YOU KNOW, I THINK WE'VE ALREADY -- LOOK, I'M A DEMOCRAT. I'M A MODERATE DEMOCRAT, BUT I BELIEVE IN TAKING CARE OF PEOPLE WHO ARE STRUGGLE, AND I THINK THAT'S WHAT THE DEMOCRATIC PARTY IS BETTER AT DOING. RON DESANTIS', I DON'T UNDERSTAND WHAT HE'S DONE WITH DISNEY. EVERYONE WHO'S WATCHING YOUR SHOW, WHAT ARE THEY THINKING ABOUT WHEN YOU OFTEN THE DISNEY, MICKEY MOUSE, GOING TO THE THEME PARK. HE'S TALKING ABOUT PUTTING A PRISON NEXT TO MICKEY MOUSE? WHAT IS HE TRYING TO DO? AND IT IS DESTROYING JOBS. THEY WERE GOING TO BRING 2,000 JOBS HERE. HE WANTS TO BE PRESIDENT, HE SHOULD RESIGN FROM BEING GOVERNOR BECAUSE HE'S CROIXING OUR STATE. THIS CRAZY CONCERN DESTROYING OUR STATE. THIS CRAZY ABORTION LAW, THE MOST RESTRICTIVE IN THE COUNTRY MT. STATE OF FLORIDA NOW WHERE YOU CAN'T GET AN ABORTION BEFORE YOU EVEN KNOW YOU'RE PREGNANT. I MEAN, I THINK HE'S JUST GONE A LITTLE TOO FAR WITH EVERYTHING, AND, YOU KNOW, THE SAD THING IS HE'S DOING IT TO GET TO RUN FOR PRESIDENT, BUT WE'RE GOING THE TO HAVE TO LIVE WITH THE CONSEQUENCES OF HIS ACTIONS HERE IN FLORIDA FOR A LONG TIME. LIZ: JEFF GREENE, BILLIONAIRE REAL ESTATE INVESTOR AND FLORIDIAN. I'LL TELL YOU SOMETHING, WE'RE LOOKING AT A REALLY BIG RALLY. I KNOW JEFF HAS INVESTED IN META AND GOOGLE AND DONE VERY WELL WITH THOSE. >> YEAH. LIZ: GOOD TO SEE YOU.
