1 00:00:00,043 --> 00:00:03,235 Welcome back everybody to the Industrial Insights Podcast. 2 00:00:03,235 --> 00:00:06,487 I have Duane Poppe with me, who is the managing partner 3 00:00:06,487 --> 00:00:08,888 for Lee & Associates in our Twin Cities office. 4 00:00:09,569 --> 00:00:13,413 And you launched this office about 10 years ago, from what 5 00:00:13,413 --> 00:00:16,735 I'm aware. I've had the honor of working with a couple 6 00:00:16,735 --> 00:00:17,735 people on your team. 7 00:00:18,155 --> 00:00:21,141 And then you have a unique position being mayor of one 8 00:00:21,141 --> 00:00:23,853 of your local towns, which I'd love to hear more about. 9 00:00:24,373 --> 00:00:27,896 And the mayor minute. If I recall correctly, that was 10 00:00:27,781 --> 00:00:28,097 Yeah. 11 00:00:27,896 --> 00:00:30,840 one of Duane's spotlights. I love That was a good one. 12 00:00:31,595 --> 00:00:31,805 Is 13 00:00:31,790 --> 00:00:32,250 Yeah. 14 00:00:31,805 --> 00:00:33,479 it still going? Can you bring it back? 15 00:00:33,639 --> 00:00:34,261 Or this will 16 00:00:34,112 --> 00:00:34,613 Yeah. 17 00:00:34,261 --> 00:00:36,517 be our mayor forty five minutes. 18 00:00:36,926 --> 00:00:40,533 Yeah, Exactly. No appreciate the opportunity to be here. 19 00:00:41,509 --> 00:00:43,040 Yeah, thank you for doing that. 20 00:00:43,521 --> 00:00:47,052 And let's start with mayor but only 'cause it's election cycle. 21 00:00:47,052 --> 00:00:50,413 We just had all these everything across the country and now 22 00:00:50,413 --> 00:00:52,935 knowing that you're running for president is good to know that 23 00:00:52,935 --> 00:00:55,312 you have to relinquish your mayor position. 24 00:00:56,173 --> 00:00:56,868 So tell 25 00:00:56,774 --> 00:00:57,035 no. 26 00:00:56,868 --> 00:00:59,207 us about It that's been a long journey I would imagine. 27 00:00:59,964 --> 00:01:03,536 yes, it started number of years ago, actually seventeen years ago. 28 00:01:04,301 --> 00:01:07,211 was on the council for three years and then have been 29 00:01:07,211 --> 00:01:07,461 the 30 00:01:07,945 --> 00:01:10,445 mayor of the community for the last fourteen years. 31 00:01:11,046 --> 00:01:11,816 So it's been 32 00:01:12,358 --> 00:01:14,839 interesting journey of all the things 33 00:01:15,789 --> 00:01:18,090 that we've been able to accomplish within the city. 34 00:01:18,331 --> 00:01:22,002 you know, the biggest one is just increasing the tax base, 35 00:01:22,296 --> 00:01:23,387 you know, lowering the 36 00:01:24,139 --> 00:01:27,120 Property tax rate, you know, ten out of the last twelve 37 00:01:27,120 --> 00:01:30,179 years, you know, we've had a couple of increases there, but 38 00:01:30,569 --> 00:01:31,229 you know, just 39 00:01:31,770 --> 00:01:35,306 good fiscal responsibility and kind of minding what's going on and 40 00:01:35,306 --> 00:01:38,849 bringing development. Osseo is a very unique community. 41 00:01:38,849 --> 00:01:40,449 It's in the northwest part of 42 00:01:40,870 --> 00:01:45,452 the Twin Cities. we're actually one of the oldest communities 43 00:01:45,792 --> 00:01:46,592 in the area. 44 00:01:47,362 --> 00:01:51,564 last year we celebrated our sesquicentennial, so 150 years 45 00:01:52,024 --> 00:01:52,324 as a 46 00:01:52,314 --> 00:01:52,621 Okay. 47 00:01:52,364 --> 00:01:52,944 community 48 00:01:53,693 --> 00:01:56,265 and all the major suburbs have grown up around us. 49 00:01:56,265 --> 00:01:58,677 So if you take Osseo itself, 50 00:01:59,139 --> 00:02:02,167 the city boundaries is only about one square mile. 51 00:02:02,167 --> 00:02:05,183 You know, a quarter of it is non-revenue producing with the 52 00:02:05,183 --> 00:02:06,464 churches, the schools, 53 00:02:07,085 --> 00:02:08,596 and the government buildings in there. 54 00:02:08,596 --> 00:02:10,677 So it's a very unique challenge to be able to run 55 00:02:10,677 --> 00:02:15,050 an entire city with police fire, you know, city staff, public 56 00:02:15,050 --> 00:02:17,952 works all within that one square mile without 57 00:02:18,372 --> 00:02:20,202 taxing us out of existence. 58 00:02:20,702 --> 00:02:21,302 Thank you. 59 00:02:21,652 --> 00:02:23,215 Yeah, and what's the population? 60 00:02:24,360 --> 00:02:25,549 We're about twenty seven hundred. 61 00:02:26,544 --> 00:02:26,995 Okay. 62 00:02:27,414 --> 00:02:29,077 And how'd you get involved? 63 00:02:29,813 --> 00:02:30,293 You live 64 00:02:30,189 --> 00:02:30,309 You 65 00:02:30,293 --> 00:02:30,614 there 66 00:02:30,309 --> 00:02:30,809 know, I'm 67 00:02:30,614 --> 00:02:33,243 and you said, we gotta do better or it's na now 68 00:02:33,038 --> 00:02:33,529 Yeah. 69 00:02:33,243 --> 00:02:34,084 is my time? 70 00:02:34,752 --> 00:02:36,848 No, I mean a lot of that too is, you know, 71 00:02:36,848 --> 00:02:40,306 it's seeing where we were as a community back then, and 72 00:02:41,125 --> 00:02:43,997 Obviously part of our job is presenting in front of other 73 00:02:43,997 --> 00:02:46,799 city councils and seeing what's going on in other communities 74 00:02:47,219 --> 00:02:48,900 and just being able to take that 75 00:02:49,301 --> 00:02:51,863 knowledge and experience and you know at that point 76 00:02:52,669 --> 00:02:55,961 help the community and you know also protect the biggest asset 77 00:02:55,961 --> 00:02:57,732 at that time, you know, your home, 78 00:02:58,133 --> 00:03:00,255 and just make sure that things go in the right direction. 79 00:03:00,255 --> 00:03:03,437 And so I just instead of sit back and complain on 80 00:03:03,508 --> 00:03:06,599 Facebook all day, I decided to jump in and get involved. 81 00:03:07,384 --> 00:03:10,535 Yeah, I love it. My sister lives in McCall, Idaho. 82 00:03:10,936 --> 00:03:13,909 And so many of people in our community, they all have 83 00:03:14,409 --> 00:03:17,890 rotated through all the main aspects and roles that there are 84 00:03:17,890 --> 00:03:21,432 within the city to help run it because that's their community 85 00:03:21,432 --> 00:03:24,395 and it's not something you like outsource. 86 00:03:24,395 --> 00:03:26,526 It's your community, like you take care of it. 87 00:03:27,326 --> 00:03:27,907 Yeah. 88 00:03:27,988 --> 00:03:28,369 Yeah. 89 00:03:29,487 --> 00:03:32,008 That's awesome. And so then you learn all sorts of new 90 00:03:32,008 --> 00:03:34,449 stuff I would imagine and then take all your real estate 91 00:03:34,449 --> 00:03:36,050 experience and you have that lens. 92 00:03:36,431 --> 00:03:37,095 that you can bring 93 00:03:37,052 --> 00:03:37,317 Yeah. 94 00:03:37,095 --> 00:03:39,328 to the table and I'm sure you've that's helped your real 95 00:03:39,328 --> 00:03:40,334 estate experience too. 96 00:03:40,636 --> 00:03:42,377 Yeah, I mean it was kind of twofold. 97 00:03:42,377 --> 00:03:44,658 One, I mean, it was kind of a graduate degree in 98 00:03:44,858 --> 00:03:47,619 how cities work and the processes and the hoops you need 99 00:03:47,619 --> 00:03:50,340 to get through to accomplish projects. 100 00:03:50,721 --> 00:03:54,472 And then that's allowed me then to go to other communities 101 00:03:54,472 --> 00:03:58,704 in the area, obviously having relationships with mayors and council members 102 00:03:59,245 --> 00:04:01,266 on other communities and almost going 103 00:04:01,666 --> 00:04:06,028 top down on projects, having conversations with mayors or council members, 104 00:04:06,028 --> 00:04:07,959 be like, Do you think this will have any support if 105 00:04:07,959 --> 00:04:10,570 we kinda do this kind of project within the community? 106 00:04:10,710 --> 00:04:14,021 and be able to have that feedback even before you kind 107 00:04:14,021 --> 00:04:16,434 of come bottom up through the city staff. 108 00:04:17,175 --> 00:04:19,376 Sometimes there's that disconnect between 109 00:04:19,957 --> 00:04:22,619 city staff and what the council will approve, and it can 110 00:04:22,619 --> 00:04:25,371 be either way. You know, where the staff thinks it's a 111 00:04:25,371 --> 00:04:27,573 good idea and council has no interest. 112 00:04:27,573 --> 00:04:28,943 So it's be able to, 113 00:04:29,404 --> 00:04:32,048 you know, shorten that time frame and, you know, not waste 114 00:04:32,048 --> 00:04:34,227 a bunch of money and time for clients. 115 00:04:35,192 --> 00:04:35,963 That's huge. 116 00:04:36,383 --> 00:04:38,706 Like, I'm sure with development is one thing. 117 00:04:38,706 --> 00:04:41,188 I know for us in Orange County it's an infill market, 118 00:04:41,188 --> 00:04:42,259 so a lot of it is like 119 00:04:42,699 --> 00:04:45,712 conditional use permits or anything that has to do with going 120 00:04:45,712 --> 00:04:48,684 through the city. And that's not even on my radar that 121 00:04:48,684 --> 00:04:50,336 there is the potential for 122 00:04:50,231 --> 00:04:50,454 ha. 123 00:04:50,336 --> 00:04:54,829 disconnect between the front counter people and the council. 124 00:04:55,150 --> 00:04:55,420 And 125 00:04:55,508 --> 00:04:55,924 Oh yeah. 126 00:04:55,920 --> 00:04:58,632 like you know they clearly like a work together and that 127 00:04:58,733 --> 00:04:59,093 things 128 00:04:58,849 --> 00:04:59,102 Yeah. 129 00:04:59,093 --> 00:05:02,456 like a CUP will end up going to a meeting, so 130 00:05:02,456 --> 00:05:04,037 like a they must work together, but 131 00:05:04,509 --> 00:05:04,890 That's 132 00:05:05,478 --> 00:05:08,259 that's a good thing to know about and to like be 133 00:05:08,259 --> 00:05:10,733 able to like manage to the extent possible. 134 00:05:11,399 --> 00:05:11,719 Yep. 135 00:05:12,640 --> 00:05:17,004 Yep. Just yeah, managing those expectations for clients and timing and 136 00:05:17,004 --> 00:05:17,404 it just 137 00:05:18,205 --> 00:05:21,537 there's so many different city hoops that, you know, sequential steps 138 00:05:21,537 --> 00:05:23,189 that you need to go through to get to the next 139 00:05:23,189 --> 00:05:26,457 level and you know, if you can set those expectations early 140 00:05:26,457 --> 00:05:28,868 enough and say, This is how long it's gonna be, is 141 00:05:28,868 --> 00:05:30,760 this still a viable opportunity to 142 00:05:31,421 --> 00:05:34,863 you know, just working through a deal here locally that we 143 00:05:34,863 --> 00:05:38,919 needed a text amendment change within a zoning code and then 144 00:05:39,668 --> 00:05:42,519 And then having conversation with the both ownership and tenant that 145 00:05:42,879 --> 00:05:45,731 those two steps, you know, and then having to apply for 146 00:05:45,731 --> 00:05:50,463 a CUP within that zoning code, those steps can't sequentially happen. 147 00:05:50,690 --> 00:05:52,311 they have to follow the process. 148 00:05:52,311 --> 00:05:54,112 The text amendment has to be changed, 149 00:05:54,574 --> 00:05:56,836 then this then the CUP application. 150 00:05:56,836 --> 00:06:00,337 So it's just a timing issue and setting those expectations. 151 00:06:00,698 --> 00:06:01,958 And then obviously it always 152 00:06:02,499 --> 00:06:04,709 gets to be a issue at the end of the year 153 00:06:04,709 --> 00:06:05,660 here with only 154 00:06:06,120 --> 00:06:08,341 one meeting typically in December, people coming. 155 00:06:08,391 --> 00:06:10,867 approve their budget and then you don't have so it's 156 00:06:11,308 --> 00:06:14,845 almost an extra month of you know just city process that 157 00:06:14,845 --> 00:06:16,017 you have to set that timing. 158 00:06:17,050 --> 00:06:19,883 Yeah. Does that give you different perspective when you think of 159 00:06:19,883 --> 00:06:22,889 like other government that you see, like whether it's like the 160 00:06:22,889 --> 00:06:26,143 state or the country or like that causes you to be 161 00:06:26,143 --> 00:06:27,094 like more tuned in? 162 00:06:28,323 --> 00:06:29,044 Yeah, I mean, 163 00:06:29,604 --> 00:06:31,466 end of the day I've always felt that 164 00:06:31,987 --> 00:06:35,110 the further you get away from the people, the less change 165 00:06:35,110 --> 00:06:36,711 you can affect. And that was one 166 00:06:36,662 --> 00:06:36,965 Yeah. 167 00:06:36,711 --> 00:06:38,393 of the big drivers being 168 00:06:38,223 --> 00:06:38,525 Yeah. 169 00:06:38,393 --> 00:06:42,207 involved in local where you can make changes that will positively 170 00:06:42,207 --> 00:06:43,618 affect people and you're not 171 00:06:44,281 --> 00:06:46,647 You know, I've been asked you know, go to a state 172 00:06:46,647 --> 00:06:49,669 level and I know a bunch of people at the state 173 00:06:49,669 --> 00:06:52,500 level and I've some friends at the national level and it 174 00:06:52,500 --> 00:06:52,830 just 175 00:06:53,610 --> 00:06:55,151 it's just a different animal there. 176 00:06:55,962 --> 00:06:56,223 Yeah. 177 00:06:56,012 --> 00:06:56,372 you know, 178 00:06:56,815 --> 00:06:58,996 and then especially on a state level, if 179 00:06:59,536 --> 00:07:02,578 whatever parties in control, if you're not in that, you can 180 00:07:02,578 --> 00:07:04,839 campaign and say you're gonna do all this, but you're just 181 00:07:04,839 --> 00:07:06,900 gonna sit there and spin your wheels. 182 00:07:06,900 --> 00:07:08,941 So and it and that would be frustrating. 183 00:07:08,941 --> 00:07:12,622 It's for me it was never it's never about politics. 184 00:07:12,823 --> 00:07:13,683 It was always about 185 00:07:14,357 --> 00:07:17,879 Let me just run this enterprise as efficiently as we can. 186 00:07:18,176 --> 00:07:20,508 And like you know, I told a lot of people at 187 00:07:20,508 --> 00:07:22,022 a city government, you know, 188 00:07:22,475 --> 00:07:25,227 it's partisan. You don't have to, you know, in our you 189 00:07:25,227 --> 00:07:27,839 know, most of the cities here, you don't have to get 190 00:07:28,099 --> 00:07:29,921 support from one party or the other. 191 00:07:30,641 --> 00:07:33,583 I've had a lot of conversations with you know council members 192 00:07:33,583 --> 00:07:36,626 to say, you know, it's pretty simple on the council. 193 00:07:36,906 --> 00:07:39,688 People want clean water to come to their house, they want 194 00:07:39,688 --> 00:07:42,640 dirty water to leave their house, they don't want their cars 195 00:07:42,640 --> 00:07:44,952 to fall apart. as they drive to and from their house 196 00:07:45,312 --> 00:07:46,972 and feel safe, police and fire. 197 00:07:47,112 --> 00:07:48,833 And that's about it. We 198 00:07:48,784 --> 00:07:49,949 boom. Yeah. 199 00:07:49,913 --> 00:07:53,034 we you don't have to get political, you don't have to 200 00:07:53,175 --> 00:07:56,546 support this, you know, agenda or that agenda. 201 00:07:56,546 --> 00:07:59,337 It's run this enterprise as efficiently as we can. 202 00:08:00,316 --> 00:08:02,122 Yeah. I love it. That's awesome. 203 00:08:02,544 --> 00:08:05,021 Keeps it simple and it takes care of your surrounding area. 204 00:08:05,739 --> 00:08:06,131 Yep. 205 00:08:07,399 --> 00:08:07,840 Yep. 206 00:08:07,440 --> 00:08:11,306 And so that's not enough, so we're managing the office too. 207 00:08:12,030 --> 00:08:13,025 Exactly. So 208 00:08:13,232 --> 00:08:14,870 have you done that since day one? 209 00:08:15,309 --> 00:08:17,741 Yeah, there was four of us that started the office and, 210 00:08:17,741 --> 00:08:20,783 you know, grew it here to you know, over the ten 211 00:08:20,783 --> 00:08:22,415 years and yeah, I was 212 00:08:22,875 --> 00:08:25,087 looking to add people and kinda tell the 213 00:08:25,740 --> 00:08:30,179 the Lee story and the value of entrepreneurship and the opportunity 214 00:08:30,179 --> 00:08:32,500 to have a seat at the table on the ownership level. 215 00:08:33,468 --> 00:08:33,888 Yeah. 216 00:08:34,669 --> 00:08:35,821 I get some 217 00:08:36,286 --> 00:08:39,403 president and managing partner love. Jack Cline I got to talk 218 00:08:39,403 --> 00:08:39,714 with 219 00:08:39,821 --> 00:08:40,151 Yeah. 220 00:08:40,174 --> 00:08:41,926 probably ten days ago. He's awesome. 221 00:08:41,926 --> 00:08:44,027 It was so fun to spend time with him and then 222 00:08:44,027 --> 00:08:45,138 learn a little bit about 223 00:08:45,539 --> 00:08:47,891 how they look at their office, how they run it, how 224 00:08:47,891 --> 00:08:48,821 they recruit. 225 00:08:49,422 --> 00:08:52,956 And you're not you're gonna run for re election for managing 226 00:08:52,956 --> 00:08:54,708 partner then too, I would imagine. 227 00:08:55,514 --> 00:08:58,055 yeah. didn't run for a re election for the mayor this 228 00:08:58,055 --> 00:08:58,796 year, but 229 00:08:59,227 --> 00:09:02,249 yeah, managing principal will we'll keep chugging along. 230 00:09:02,249 --> 00:09:05,464 I don't think anybody else wants the baton in our office. 231 00:09:06,508 --> 00:09:06,989 Yes. 232 00:09:07,390 --> 00:09:08,912 It's the crown is heavy. 233 00:09:09,733 --> 00:09:10,116 Yes. 234 00:09:10,876 --> 00:09:12,559 did you manage before Lee? 235 00:09:13,068 --> 00:09:15,420 no. I was just, you know, a broker for a long 236 00:09:15,420 --> 00:09:18,936 time. and we had the opportunity, you know, or brought in 237 00:09:18,936 --> 00:09:19,887 with the group that 238 00:09:20,678 --> 00:09:23,771 proposed to open the office there locally and, you know, just 239 00:09:23,771 --> 00:09:27,246 kinda joined on and kinda talked amongst ourselves and they were 240 00:09:27,246 --> 00:09:29,548 like, We all think you should do it So I said, 241 00:09:29,548 --> 00:09:29,949 All right 242 00:09:30,889 --> 00:09:32,712 Yeah. how'd you all come together? 243 00:09:32,712 --> 00:09:34,366 All from the same firm or how 244 00:09:34,798 --> 00:09:36,643 like it tell a little bit of the origin story? 245 00:09:37,099 --> 00:09:39,041 Yeah, no, I mean just different firms. 246 00:09:39,534 --> 00:09:42,327 you know, we all came together and just knew each other 247 00:09:42,327 --> 00:09:44,240 from different shops and then 248 00:09:44,712 --> 00:09:47,134 kinda came together and kinda launched the office. 249 00:09:48,256 --> 00:09:50,411 And you got to go in front of all the presidents 250 00:09:51,374 --> 00:09:54,733 when it was time to like present your office? 251 00:09:54,774 --> 00:09:56,498 I remember being in some of those. 252 00:09:56,970 --> 00:09:59,872 Yeah, I was actually not at that meeting, you know, at 253 00:09:59,872 --> 00:10:01,953 that point, still with another firm 254 00:10:02,473 --> 00:10:05,873 that you know, had some stuff going on, so allowed them 255 00:10:05,873 --> 00:10:09,765 to make the presentation and kinda keep my involvement a little 256 00:10:09,765 --> 00:10:13,128 quiet initially and until it was kind of approved and then 257 00:10:13,128 --> 00:10:13,758 we got the 258 00:10:14,321 --> 00:10:17,003 kind of got the office going and made the move. 259 00:10:17,832 --> 00:10:19,243 Yeah. I love that. 260 00:10:19,941 --> 00:10:22,435 I would imagine it's not high pressure but like 261 00:10:23,085 --> 00:10:25,863 being in front of a lot of your peers and trying 262 00:10:25,863 --> 00:10:27,544 to get into the inner circle. 263 00:10:27,564 --> 00:10:28,815 Like that's cause 264 00:10:28,622 --> 00:10:29,132 Oh yeah. 265 00:10:28,815 --> 00:10:31,166 you to make sure you're polished and looking good and you 266 00:10:31,166 --> 00:10:31,336 know 267 00:10:31,315 --> 00:10:31,525 Oh 268 00:10:31,336 --> 00:10:31,526 your 269 00:10:31,525 --> 00:10:31,915 yeah. 270 00:10:31,526 --> 00:10:32,907 numbers and you 271 00:10:32,836 --> 00:10:33,356 Yep. 272 00:10:32,907 --> 00:10:33,647 know your story. 273 00:10:34,177 --> 00:10:37,884 Yep. And had to give a few updates to the presidents 274 00:10:37,884 --> 00:10:40,496 at meetings which is a little nerve wracking and they hammer 275 00:10:40,496 --> 00:10:43,679 you questions. But you know, it makes you know, there's some 276 00:10:43,679 --> 00:10:45,311 good ideas and helps, you know, just 277 00:10:45,791 --> 00:10:49,134 make things better and it kind of improve your processes locally. 278 00:10:49,952 --> 00:10:52,704 Oh yeah. I love everybody's doing the best they can and 279 00:10:52,704 --> 00:10:54,700 like there's always so willing to share. 280 00:10:54,700 --> 00:10:56,917 Like there's always plenty of great ideas for improvements. 281 00:10:56,619 --> 00:10:56,960 Yeah. 282 00:10:57,462 --> 00:11:00,200 And I really think that's, you know, kind of the glue 283 00:11:00,200 --> 00:11:01,293 that, you know, makes 284 00:11:02,281 --> 00:11:04,842 Lee a little different because, you know, with all of us 285 00:11:04,842 --> 00:11:08,394 investing in each other's offices, everybody wants everybody to do well. 286 00:11:09,066 --> 00:11:09,364 Yeah. 287 00:11:09,094 --> 00:11:10,995 And I mean that just helps everybody. 288 00:11:10,995 --> 00:11:13,607 So it's like, yeah, I mean I can't tell you the 289 00:11:13,607 --> 00:11:16,038 number of people, you know, around the country that have just 290 00:11:16,038 --> 00:11:20,410 been amazing with questions and obviously Rinkov has just been amazing. 291 00:11:21,075 --> 00:11:24,894 be able to get questions or you know, run situations by 292 00:11:24,894 --> 00:11:25,905 'em. And 293 00:11:26,545 --> 00:11:28,956 everyone's just so willing to help and lend it. 294 00:11:28,956 --> 00:11:31,267 It's such an amazing family across the country. 295 00:11:31,647 --> 00:11:35,631 Even and it's unique to still have that as we continue 296 00:11:35,631 --> 00:11:37,132 to grow. Because 297 00:11:37,075 --> 00:11:37,501 Yeah. 298 00:11:37,132 --> 00:11:37,812 we were the 299 00:11:38,213 --> 00:11:42,426 fifty-fifth office. So I mean it's been thirty offices since us 300 00:11:42,426 --> 00:11:44,538 and I feel like that culture and 301 00:11:45,006 --> 00:11:46,567 that camaraderie is still there. 302 00:11:47,546 --> 00:11:51,239 Yeah. That's an interesting perspective. Like having seen like a when 303 00:11:51,239 --> 00:11:54,941 you joined and what that was like as though perhaps when 304 00:11:54,941 --> 00:11:58,785 I started was fresh out of college, like I know what 305 00:11:58,785 --> 00:12:01,487 that's looked like here locally at our office and then to 306 00:12:01,487 --> 00:12:05,081 the extent like working with people nationally, but not like quarter 307 00:12:05,081 --> 00:12:08,703 by quarter with all of the presidents meetings and like a 308 00:12:08,703 --> 00:12:11,625 getting to see all of it evolve from the inside 309 00:12:11,471 --> 00:12:11,821 Yeah. 310 00:12:11,625 --> 00:12:13,787 and from all like the managers and the leaders. 311 00:12:14,123 --> 00:12:17,274 Yeah. it's been interesting. Like I said, Jeff's been doing a 312 00:12:17,716 --> 00:12:18,356 great job. 313 00:12:19,111 --> 00:12:22,046 Yeah. And we have a lot of fantastic stars that have 314 00:12:22,046 --> 00:12:24,369 joined or that are leading some of the new offices that 315 00:12:24,369 --> 00:12:26,002 have been real assets to the company 316 00:12:25,865 --> 00:12:26,308 Yeah. 317 00:12:26,002 --> 00:12:26,843 and the group. 318 00:12:27,501 --> 00:12:27,923 Yep. 319 00:12:28,337 --> 00:12:31,622 tell me about your book. Is your book of business 320 00:12:32,064 --> 00:12:35,270 primarily industrial? Do you have a good mix or like how 321 00:12:35,270 --> 00:12:36,622 would you describe it at present? 322 00:12:37,229 --> 00:12:40,975 yeah, no, I mean minus it's been industrial kind of all 323 00:12:40,975 --> 00:12:43,080 my life. you know, so I've been 324 00:12:43,581 --> 00:12:45,824 was really heavy on the landlord side. 325 00:12:46,596 --> 00:12:48,797 Landlord rep before I came over here. 326 00:12:49,317 --> 00:12:51,318 And that was really kind of, you 327 00:12:52,019 --> 00:12:54,079 know, I made that decision when I came over that 328 00:12:54,520 --> 00:12:57,881 that's gotta be a little less because it's very time consuming. 329 00:12:58,569 --> 00:12:59,489 you know, and you're 330 00:12:59,989 --> 00:13:03,041 kind of beholden to, you know, that owner and between the 331 00:13:03,041 --> 00:13:05,292 reporting and the showings and you know 332 00:13:06,012 --> 00:13:09,074 availability to do other business as well. 333 00:13:09,074 --> 00:13:11,575 They're kind of like, well, you know, focus on our portfolio. 334 00:13:12,195 --> 00:13:12,675 So 335 00:13:13,296 --> 00:13:15,947 since then I've you know kind of had a little more 336 00:13:15,947 --> 00:13:19,251 balance. approach you know kind of the three-legged stool with 337 00:13:19,652 --> 00:13:21,112 some listing work 338 00:13:21,693 --> 00:13:25,234 and then sales and then tenant rep you know so and 339 00:13:25,234 --> 00:13:28,155 then obviously you know doing a little bit more tenant rep 340 00:13:28,476 --> 00:13:31,929 here last year or so you know so it's kind of 341 00:13:32,109 --> 00:13:34,310 trying to have a little bit each of those buckets 342 00:13:35,291 --> 00:13:38,266 Yeah, I love it. It's funny when you look back every 343 00:13:38,266 --> 00:13:41,038 year of what deals closed and where all the revenue came 344 00:13:41,038 --> 00:13:44,530 from and that a different leg of the stool might carry 345 00:13:44,530 --> 00:13:45,000 the year 346 00:13:44,812 --> 00:13:45,213 Yeah. 347 00:13:45,000 --> 00:13:48,192 in any given year, even if you're trying just as hard 348 00:13:48,192 --> 00:13:51,024 and you're just as laser focused on whatever your primary 349 00:13:50,401 --> 00:13:50,719 Yeah. 350 00:13:51,024 --> 00:13:53,396 is, like that's just the nature of the business. 351 00:13:54,136 --> 00:13:56,598 Yeah, and I think you look at it, yeah, as you 352 00:13:56,598 --> 00:13:59,890 do your business planning, you're like, I've got all these opportunities 353 00:13:59,890 --> 00:14:01,762 and I'm gonna do this and you look back and you're 354 00:14:01,762 --> 00:14:02,052 like, 355 00:14:02,552 --> 00:14:04,994 Hardly any of those closed but yet all this other stuff 356 00:14:04,994 --> 00:14:07,205 was filled in. You know, I just you know, as we 357 00:14:07,205 --> 00:14:08,729 preach here I just think it's 358 00:14:09,768 --> 00:14:10,170 you know 359 00:14:10,902 --> 00:14:14,673 Money loves clarity and you know, as clear as you can 360 00:14:14,673 --> 00:14:17,633 be on your direction in your activities, 361 00:14:18,053 --> 00:14:18,733 I think that 362 00:14:19,313 --> 00:14:20,394 will generate 363 00:14:20,954 --> 00:14:23,505 other activities that you're not even thinking about. 364 00:14:23,805 --> 00:14:24,926 and I think where 365 00:14:25,679 --> 00:14:27,860 by being active and 366 00:14:28,580 --> 00:14:29,656 even if I was 367 00:14:30,476 --> 00:14:31,837 We were just talking about this the other day. 368 00:14:31,837 --> 00:14:34,268 It's like I feel even when you're cold calling and you 369 00:14:34,268 --> 00:14:37,860 feel like you're getting nowhere, you know, the universe rewards you 370 00:14:37,860 --> 00:14:41,162 for your hard work where you know another opportunity will just 371 00:14:41,302 --> 00:14:42,803 come out of thin air for you. 372 00:14:43,123 --> 00:14:43,493 So it's 373 00:14:43,414 --> 00:14:43,728 Yeah. 374 00:14:43,493 --> 00:14:43,944 like just 375 00:14:44,384 --> 00:14:47,105 put your head down, continue to work, do what's right, you 376 00:14:47,105 --> 00:14:48,486 know, build relationships 377 00:14:48,907 --> 00:14:50,057 'cause it just takes time. 378 00:14:50,057 --> 00:14:53,969 Yeah. 379 00:14:50,806 --> 00:14:52,517 You're like, how does that make sense? 380 00:14:52,558 --> 00:14:55,921 And you're like, trust me, with time you will recognize like 381 00:14:56,081 --> 00:14:56,431 that's 382 00:14:56,091 --> 00:14:56,591 Yeah. 383 00:14:56,431 --> 00:14:58,173 how it plays out. And so you can 384 00:14:58,132 --> 00:14:58,492 Yeah. 385 00:14:58,173 --> 00:14:59,430 accept it or you can fight it. 386 00:15:00,153 --> 00:15:04,363 Yep. So yeah, just don't get discouraged and, you know, keep 387 00:15:04,363 --> 00:15:05,445 doing what's right every day. 388 00:15:06,493 --> 00:15:10,036 Yeah. On the tenant rep I found a article that said 389 00:15:10,036 --> 00:15:13,419 the mayor of CRE delivers. I love it, dude. 390 00:15:13,419 --> 00:15:13,740 That was 391 00:15:13,883 --> 00:15:14,084 ha 392 00:15:15,171 --> 00:15:18,199 So good. I love like those ones cause rolls right off 393 00:15:18,199 --> 00:15:18,809 the tongue. 394 00:15:19,210 --> 00:15:22,881 And it was referencing a Niagara bottling deal that you worked 395 00:15:22,881 --> 00:15:23,182 on. 396 00:15:23,528 --> 00:15:23,833 Yeah. 397 00:15:23,582 --> 00:15:26,608 And I was curious if that's a good one to explore 398 00:15:26,608 --> 00:15:29,180 a little bit of like what it was, how it went 399 00:15:29,180 --> 00:15:30,782 down, and a bit of that story. 400 00:15:31,884 --> 00:15:34,191 Yeah, I mean obviously, you know, I was helping out a 401 00:15:34,191 --> 00:15:37,882 Lee client here locally. Mike Earnheart was running that account for 402 00:15:37,882 --> 00:15:38,632 a number of years. 403 00:15:39,173 --> 00:15:41,595 And that was a very unique situation. 404 00:15:42,165 --> 00:15:45,427 That started as a two state site selection because with their 405 00:15:45,427 --> 00:15:50,049 model, as their customer base grows, then they're able to they 406 00:15:50,049 --> 00:15:52,340 want to be within two hundred and fifty miles of major 407 00:15:52,340 --> 00:15:53,250 customers because 408 00:15:53,831 --> 00:15:56,532 transporting waters you know gets to be expensive. 409 00:15:56,732 --> 00:15:59,753 you know, so we started that and then kind of knowing 410 00:16:00,894 --> 00:16:02,755 kind of the requirement, what it takes, 411 00:16:03,375 --> 00:16:03,775 and 412 00:16:04,296 --> 00:16:07,577 starting not with the real estate, but for me I started 413 00:16:07,617 --> 00:16:09,198 on the side of 414 00:16:10,398 --> 00:16:14,021 what cities have excess capacity within their water system 415 00:16:14,441 --> 00:16:16,242 to be able to handle this requirement. 416 00:16:16,662 --> 00:16:19,985 So instead of running around looking at buildings, starting on the 417 00:16:20,285 --> 00:16:23,467 kind of wearing the government hat at that point, saying, okay, 418 00:16:23,607 --> 00:16:25,288 that those were the questions 419 00:16:25,809 --> 00:16:28,961 with the cities. Do you have excess capacity within your existing 420 00:16:28,961 --> 00:16:29,511 system 421 00:16:29,931 --> 00:16:31,923 because of the timing of the deal? 422 00:16:31,923 --> 00:16:34,694 We're not talking about future build-out or anything. 423 00:16:34,694 --> 00:16:36,996 We you know, within the next three to five years, 424 00:16:37,416 --> 00:16:39,928 can you handle this within your system? 425 00:16:39,928 --> 00:16:40,298 So 426 00:16:40,779 --> 00:16:44,261 there was a number of communities that got thrown out immediately, 427 00:16:44,561 --> 00:16:47,933 you know, that had viable buildings but didn't have the capacity. 428 00:16:47,933 --> 00:16:48,834 So then 429 00:16:48,810 --> 00:16:49,383 Interesting. 430 00:16:48,834 --> 00:16:50,628 we did that and then it was a lot of 431 00:16:51,399 --> 00:16:55,482 driving through Wisconsin and then into Minnesota kind of up and 432 00:16:55,482 --> 00:16:56,713 down you know 433 00:16:56,486 --> 00:16:56,778 Cheese 434 00:16:56,713 --> 00:16:57,043 based 435 00:16:56,778 --> 00:16:57,270 curds. 436 00:16:57,043 --> 00:16:57,443 on their 437 00:16:57,869 --> 00:16:58,369 yeah 438 00:16:59,250 --> 00:17:02,262 so looking that you know having city meetings and ended up 439 00:17:02,312 --> 00:17:05,818 you know had one site under contract and again this is 440 00:17:06,000 --> 00:17:07,679 you know as we mentioned earlier 441 00:17:08,307 --> 00:17:11,298 City staff were all for it, gets the council and they're 442 00:17:11,298 --> 00:17:12,749 like, No. So 443 00:17:13,429 --> 00:17:17,241 not interested. So then we had to fire things back up 444 00:17:17,241 --> 00:17:18,742 and then ended up finding 445 00:17:19,324 --> 00:17:23,596 another community that had excess capacity within their system, be able 446 00:17:23,596 --> 00:17:26,678 to find some land, do a build-to-suit there and again, 447 00:17:26,678 --> 00:17:30,430 you know, there's community uproar about 448 00:17:30,918 --> 00:17:32,799 the use there and then but 449 00:17:33,585 --> 00:17:35,876 having relationships with 450 00:17:36,456 --> 00:17:38,077 their city manager and 451 00:17:38,494 --> 00:17:40,274 the mayor I was able to kinda 452 00:17:41,135 --> 00:17:45,357 kinda answer their questions and give them information to help them 453 00:17:45,657 --> 00:17:48,678 look better in the public, you know, during the meetings and 454 00:17:48,678 --> 00:17:52,802 things. So there's a little bit of background information that behind 455 00:17:52,802 --> 00:17:54,153 the scenes work to help that 456 00:17:54,392 --> 00:17:54,812 Yeah. 457 00:17:54,393 --> 00:17:55,633 project be successful. 458 00:17:56,633 --> 00:17:59,055 It takes a lot of educating all the way around and 459 00:17:59,055 --> 00:18:02,626 from everyone's perspective so that they can understand 'cause not everyone's 460 00:18:02,626 --> 00:18:05,138 a real estate guy or a water guy or there's so 461 00:18:05,138 --> 00:18:08,289 many people that are all focused on their one slice of 462 00:18:08,289 --> 00:18:09,220 what they know best. 463 00:18:09,907 --> 00:18:10,309 Yeah. 464 00:18:11,031 --> 00:18:13,553 It's gotta be a fun project when you just think of 465 00:18:13,553 --> 00:18:16,706 like sometimes when you hear the word site selection, you know 466 00:18:16,706 --> 00:18:19,218 it's gonna be broad and like there's a lot of work 467 00:18:19,218 --> 00:18:19,919 that goes into 468 00:18:19,873 --> 00:18:20,231 Yeah. 469 00:18:19,919 --> 00:18:22,951 that that's different than just like the regular go out and 470 00:18:22,951 --> 00:18:24,743 lease a building type of process. 471 00:18:24,438 --> 00:18:24,841 Yeah. 472 00:18:25,652 --> 00:18:26,034 Yeah. 473 00:18:26,923 --> 00:18:28,844 How long would you say that went start to finish? 474 00:18:29,982 --> 00:18:30,265 Oh. 475 00:18:30,792 --> 00:18:31,417 That was 476 00:18:32,166 --> 00:18:33,597 Over two years probably. 477 00:18:34,585 --> 00:18:34,949 Okay. 478 00:18:35,638 --> 00:18:37,859 From the initial call to 479 00:18:38,460 --> 00:18:42,282 some preliminary, you know, buildings and then they're like, Okay. 480 00:18:42,682 --> 00:18:44,563 Then they came back and then it was 481 00:18:45,124 --> 00:18:47,866 Yep, we're gonna do a deal, we gotta find something and 482 00:18:47,866 --> 00:18:51,528 then that's when we're like, Okay, if this is for real 483 00:18:51,528 --> 00:18:52,308 that we gotta 484 00:18:52,889 --> 00:18:55,610 look at the capacity side of things before we even worry 485 00:18:55,610 --> 00:18:56,531 about the real estate. 486 00:18:57,011 --> 00:18:57,391 So 487 00:18:57,338 --> 00:18:57,775 Yeah. 488 00:18:57,391 --> 00:18:57,912 and then that 489 00:18:58,824 --> 00:19:00,176 And then it took us a while to get through the 490 00:19:00,176 --> 00:19:01,427 one community and then 491 00:19:02,069 --> 00:19:02,869 all of that 492 00:19:03,390 --> 00:19:06,044 stages and then to get shot down and then to fire 493 00:19:06,044 --> 00:19:07,255 it all back up. So 494 00:19:07,747 --> 00:19:09,660 it was a fun. long 495 00:19:10,181 --> 00:19:12,885 took more took quite a few twists along the way, but 496 00:19:12,885 --> 00:19:13,556 we got it done. 497 00:19:14,594 --> 00:19:17,806 That's how it is. Yeah, it's funny thinking through like some 498 00:19:17,806 --> 00:19:19,958 people start will need to start with labor 499 00:19:20,374 --> 00:19:25,047 or like power availability, water is a huge one. 500 00:19:25,355 --> 00:19:29,315 And yeah, now with like moratoriums on new development for certain 501 00:19:29,315 --> 00:19:33,213 cities, like there certainly is plenty of like filters you gotta 502 00:19:33,213 --> 00:19:36,370 go through with site selection type of assignments. 503 00:19:37,109 --> 00:19:37,470 Yeah. 504 00:19:38,187 --> 00:19:40,227 you must get some inbound business. 505 00:19:41,432 --> 00:19:41,792 Yeah. 506 00:19:42,977 --> 00:19:43,318 and 507 00:19:43,174 --> 00:19:43,825 Yeah, 'cause 508 00:19:43,710 --> 00:19:43,980 what 509 00:19:43,825 --> 00:19:44,095 I 510 00:19:44,834 --> 00:19:47,307 Yeah, I mean that goes just back to relationships, 511 00:19:47,967 --> 00:19:48,828 you know, and 512 00:19:49,329 --> 00:19:52,232 you know, understanding what the market and be able to provide 513 00:19:52,232 --> 00:19:55,365 value not only for the client but you know, the other 514 00:19:55,365 --> 00:19:57,938 broker that's referring those opportunities. 515 00:19:59,094 --> 00:20:02,821 Yeah. What are some things people coming from California or out 516 00:20:02,821 --> 00:20:03,342 of state 517 00:20:03,823 --> 00:20:06,555 learn when they're like, Oh, that's how you guys do it 518 00:20:06,555 --> 00:20:11,247 over there? 'Cause inevitably like all places have their own local 519 00:20:11,673 --> 00:20:14,494 rules, way they quote things or like 520 00:20:15,393 --> 00:20:15,713 Yeah, 521 00:20:15,886 --> 00:20:16,406 sometimes 522 00:20:16,413 --> 00:20:19,950 we're I know per square foot per year, you know, unlike 523 00:20:19,950 --> 00:20:20,090 you 524 00:20:19,980 --> 00:20:20,691 Okay. 525 00:20:20,090 --> 00:20:20,831 guys with your 526 00:20:20,691 --> 00:20:21,181 Just holding 527 00:20:21,011 --> 00:20:21,291 per 528 00:20:21,181 --> 00:20:21,442 out 529 00:20:21,291 --> 00:20:21,691 month. 530 00:20:21,442 --> 00:20:22,864 or we're holding out or 531 00:20:22,931 --> 00:20:24,031 Yeah. 532 00:20:23,795 --> 00:20:24,896 someone's doing it. 533 00:20:25,552 --> 00:20:26,142 Yeah, and 534 00:20:26,078 --> 00:20:26,358 Yeah. 535 00:20:26,142 --> 00:20:29,293 then what was unique and that's been changing a little bit 536 00:20:29,293 --> 00:20:32,054 here in our market, we always used to have two rates, 537 00:20:32,054 --> 00:20:33,874 you had an office and a warehouse rate. 538 00:20:34,297 --> 00:20:34,613 Yes. 539 00:20:34,894 --> 00:20:38,315 You know, so but now I mean obviously people are more 540 00:20:38,695 --> 00:20:40,296 moving towards that blended rate, 541 00:20:40,716 --> 00:20:41,496 you know, so 542 00:20:41,156 --> 00:20:41,481 Okay. 543 00:20:42,256 --> 00:20:43,837 and I mean rates of 544 00:20:44,750 --> 00:20:48,392 You know, you joke in our market for a long time. 545 00:20:48,392 --> 00:20:48,912 I mean, 546 00:20:49,332 --> 00:20:51,854 you can look at old brochures from the 547 00:20:52,815 --> 00:20:56,377 seventies, eighties into you know, early 548 00:20:57,257 --> 00:21:00,129 two thousands and we always joke we're kinda eight and four 549 00:21:00,129 --> 00:21:01,720 market. We're eight seventy five, 550 00:21:02,121 --> 00:21:05,703 four seventy five, three seventy five, I mean we just bounced. 551 00:21:06,143 --> 00:21:07,204 And then you really 552 00:21:07,884 --> 00:21:10,186 and you know we didn't most of the owners were 553 00:21:10,023 --> 00:21:10,314 You mean 554 00:21:10,186 --> 00:21:10,646 local. 555 00:21:10,314 --> 00:21:13,849 like peak to trough or like between A and okay, yeah. 556 00:21:13,894 --> 00:21:16,886 Yeah, they would just float within that range for years and 557 00:21:16,886 --> 00:21:17,126 then 558 00:21:17,813 --> 00:21:20,565 we'd develop and then the rates would come down and then 559 00:21:20,565 --> 00:21:22,077 it would take a while to fill back up 560 00:21:22,547 --> 00:21:23,788 and then you've just seen, 561 00:21:24,300 --> 00:21:27,011 you know, really over I would say the last 562 00:21:27,761 --> 00:21:29,502 I'd say fifteen years 563 00:21:30,744 --> 00:21:32,185 it's really become 564 00:21:33,459 --> 00:21:36,690 the market's been become a lot more institutionalized. 565 00:21:37,321 --> 00:21:39,682 like I said, it was a lot of local owners where 566 00:21:39,682 --> 00:21:44,044 then I remember when AMB, before they became Prologis, it was 567 00:21:44,324 --> 00:21:47,346 one of the big owners and the I remember the big 568 00:21:47,346 --> 00:21:50,437 shock wave, it was when they did vacancy prep when they 569 00:21:50,437 --> 00:21:53,148 would clean it and, you know, white box it and 570 00:21:53,629 --> 00:21:55,444 you know dress it up for a show and people are 571 00:21:55,444 --> 00:21:56,190 like, What? 572 00:21:56,690 --> 00:21:58,931 You know, so then everyone kinda followed suit. 573 00:21:59,451 --> 00:21:59,671 And 574 00:21:59,524 --> 00:21:59,684 What 575 00:21:59,671 --> 00:21:59,981 then, 576 00:21:59,684 --> 00:21:59,995 are they 577 00:21:59,981 --> 00:22:00,182 you 578 00:21:59,995 --> 00:22:00,387 doing 579 00:22:00,182 --> 00:22:00,472 know, 580 00:22:00,387 --> 00:22:00,948 over there? 581 00:22:01,292 --> 00:22:01,632 yeah, 582 00:22:01,404 --> 00:22:02,004 Yeah. 583 00:22:01,632 --> 00:22:04,622 they're like they're spending all that money or building spec office. 584 00:22:04,622 --> 00:22:07,591 They're like, what? You know, it you was just kind of 585 00:22:07,774 --> 00:22:10,336 broom clean and here you go and we'll figure it out. 586 00:22:10,529 --> 00:22:13,486 you know and then as the institutions really came in, you 587 00:22:13,486 --> 00:22:16,686 know, the Links and other ones have really driven up 588 00:22:17,259 --> 00:22:20,261 rental rates within our market. You look at some of the 589 00:22:20,261 --> 00:22:24,574 stats over the last three years we've had almost 14% rental 590 00:22:24,574 --> 00:22:28,497 increases just because we're so far behind you know the rest 591 00:22:28,497 --> 00:22:30,408 of the country as you look 592 00:22:30,829 --> 00:22:34,456 everyone else. it was you know pound these rates and just 593 00:22:34,856 --> 00:22:38,009 you know, I mean over the over that kind of fifteen 594 00:22:38,009 --> 00:22:39,770 year time frame you used to do kind of 595 00:22:40,493 --> 00:22:43,123 a blended deal you'd be at five and a quarter and 596 00:22:43,123 --> 00:22:46,706 now it's nine and a quarter, you know, to ten bucks, 597 00:22:47,366 --> 00:22:49,988 you know, per square foot. So I mean it's really 598 00:22:50,589 --> 00:22:53,651 exponentially grew over that time and it's really been 599 00:22:54,131 --> 00:22:55,272 I'd say the last 600 00:22:56,473 --> 00:22:57,714 seven, eight years, 601 00:22:58,275 --> 00:23:01,666 you know, you had you like as I mentioned Link before, 602 00:23:01,666 --> 00:23:05,297 they were non existent in our market and literally bought a 603 00:23:05,297 --> 00:23:08,218 every owner out here locally and then they became 604 00:23:08,759 --> 00:23:11,599 the largest and then a local group here 605 00:23:12,600 --> 00:23:15,611 were second and then they've kind of gobbled up and now 606 00:23:15,611 --> 00:23:16,580 they've leaped over 607 00:23:17,001 --> 00:23:18,321 Link to be the largest 608 00:23:18,842 --> 00:23:19,582 in the market. 609 00:23:20,329 --> 00:23:23,863 Okay. That's wild to see it institutionalized like that. 610 00:23:24,023 --> 00:23:24,364 And 611 00:23:24,452 --> 00:23:24,795 Yeah. 612 00:23:24,594 --> 00:23:26,348 it's true, that's just how it is. 613 00:23:26,348 --> 00:23:30,857 And there are expensive assets to maintain, boxes have gotten bigger, 614 00:23:30,857 --> 00:23:32,278 more capital is needed, 615 00:23:32,838 --> 00:23:36,370 and now everyone can buy REITs as part of their retirement 616 00:23:36,370 --> 00:23:37,070 portfolio 617 00:23:37,009 --> 00:23:37,349 Yeah, 618 00:23:37,070 --> 00:23:37,541 if they want 619 00:23:37,489 --> 00:23:38,270 exactly. 620 00:23:37,541 --> 00:23:37,771 to. 621 00:23:38,309 --> 00:23:41,948 Yeah, and then typically a building in our market, our total 622 00:23:41,948 --> 00:23:43,779 market's about three hundred million feet. 623 00:23:44,059 --> 00:23:46,121 Yeah, you get about half of it's 624 00:23:46,841 --> 00:23:49,523 you know, single tenant, owner, user, half of it is multi 625 00:23:49,523 --> 00:23:50,904 tenant, roughly, you know. 626 00:23:51,320 --> 00:23:51,640 and 627 00:23:52,452 --> 00:23:55,190 You know, our typical size in our market 628 00:23:55,690 --> 00:23:59,221 is usually, you know, historically was kind of that two to 629 00:23:59,221 --> 00:24:03,333 two fifty. You know, then some people are doing three hundreds. 630 00:24:03,794 --> 00:24:06,655 And you know, we only have, you know, one, you know, 631 00:24:06,699 --> 00:24:09,644 CRG came and built a million square footer or their 632 00:24:10,064 --> 00:24:10,379 you know, 633 00:24:10,299 --> 00:24:10,831 Cubes. 634 00:24:10,704 --> 00:24:12,025 their about The Cubes, 635 00:24:12,460 --> 00:24:12,751 Yep. 636 00:24:12,925 --> 00:24:13,325 and 637 00:24:13,966 --> 00:24:15,666 that still ended up two tenants. 638 00:24:16,267 --> 00:24:18,108 I remember back in the day with the 639 00:24:18,708 --> 00:24:22,251 national developer came in, it was a hundred 180,000 square foot 640 00:24:22,251 --> 00:24:22,721 building. 641 00:24:23,241 --> 00:24:25,282 They came with a plan and they're like, here it is. 642 00:24:25,282 --> 00:24:25,823 And we're like, 643 00:24:26,363 --> 00:24:28,614 you only have one entrance. They're like, well, it's just a 644 00:24:28,614 --> 00:24:31,026 little one. It's only 180. And we're like, 645 00:24:31,546 --> 00:24:32,587 it's gonna be more than 646 00:24:32,722 --> 00:24:33,135 Welcome 647 00:24:32,767 --> 00:24:33,487 one tenant. 648 00:24:33,135 --> 00:24:34,968 to the Twin Cities. Yeah. 649 00:24:34,368 --> 00:24:36,980 Yeah, exactly. So we had to 650 00:24:37,797 --> 00:24:40,889 do entrances on both ends and then, you know, a glass 651 00:24:40,889 --> 00:24:43,060 pack in the middle that could so you could have up 652 00:24:43,060 --> 00:24:45,891 to four tenants. And sure enough, that's how it leased was 653 00:24:45,891 --> 00:24:46,622 four tenants. 654 00:24:47,202 --> 00:24:47,482 So 655 00:24:47,450 --> 00:24:47,851 Yeah. 656 00:24:47,482 --> 00:24:49,784 I mean there's some unique challenges, so 657 00:24:49,605 --> 00:24:50,768 What's a glass pack? 658 00:24:51,369 --> 00:24:54,239 just with the doors and windows kinda in the side 659 00:24:54,941 --> 00:24:57,863 of the panels so you can put those in there so 660 00:24:57,863 --> 00:24:59,774 you can have separate entrances along 661 00:25:00,214 --> 00:25:01,575 the front face of it. 662 00:25:02,259 --> 00:25:03,461 To go from two to four? 663 00:25:04,196 --> 00:25:04,636 Yeah. 664 00:25:04,860 --> 00:25:05,507 yeah. Okay. 665 00:25:05,225 --> 00:25:05,585 Yeah. 666 00:25:05,980 --> 00:25:06,851 and that's how it went. 667 00:25:07,664 --> 00:25:09,335 Yeah, ended up four tenants. 668 00:25:10,059 --> 00:25:10,357 Yeah. 669 00:25:10,130 --> 00:25:12,426 You know, I a you know it you know, and they 670 00:25:12,426 --> 00:25:14,674 had to tweak their pro forma a little bit just 'cause 671 00:25:14,674 --> 00:25:18,423 obviously you're separating power and adding demising walls and, you know, 672 00:25:18,587 --> 00:25:22,298 separate restrooms throughout. So I mean it changes a little bit 673 00:25:22,298 --> 00:25:26,058 from a development perspective, but you know, most developers 674 00:25:26,678 --> 00:25:27,038 are, 675 00:25:27,438 --> 00:25:29,939 you know, accustomed to that here within our market. 676 00:25:30,680 --> 00:25:31,050 Yeah. 677 00:25:31,491 --> 00:25:31,871 It's 678 00:25:32,320 --> 00:25:36,467 I love knowing the local nuance and when I think of 679 00:25:37,376 --> 00:25:40,338 we talked earlier about Salt Lake City being a place where 680 00:25:40,338 --> 00:25:43,595 we could expand someday, with our company. 681 00:25:44,038 --> 00:25:46,898 a lot of projects that I had mentioned to you look 682 00:25:46,898 --> 00:25:51,071 at like Southern California versus Phoenix or versus Vegas and sometimes 683 00:25:51,071 --> 00:25:54,358 versus Salt Lake City. You must get conversations like that. 684 00:25:54,358 --> 00:25:56,150 Clearly Wisconsin is 685 00:25:56,720 --> 00:25:59,913 one of the alternative markets that people look at when they're 686 00:25:59,913 --> 00:26:02,813 doing their site selection. and you probably have people if you're 687 00:26:02,813 --> 00:26:06,156 gonna go bigger, you go to Chicago, or what is the 688 00:26:06,156 --> 00:26:09,571 general like order of operations when people are figuring 689 00:26:09,300 --> 00:26:09,600 Yeah. 690 00:26:09,571 --> 00:26:11,632 out like should we be in the Twin Cities or should 691 00:26:11,632 --> 00:26:15,025 we be somewhere else based on labor or based on bigger 692 00:26:15,025 --> 00:26:17,917 boxes or based on like a saving money? 693 00:26:19,034 --> 00:26:20,510 Yeah, I know, I mean if you look at 694 00:26:21,041 --> 00:26:21,641 people 695 00:26:22,482 --> 00:26:24,782 in this area, it's usually 696 00:26:25,242 --> 00:26:26,183 Chicago 697 00:26:26,884 --> 00:26:28,665 and then you make the leap to 698 00:26:29,249 --> 00:26:30,189 the Twin Cities. 699 00:26:30,894 --> 00:26:32,465 and that's where you see a lot of 700 00:26:33,546 --> 00:26:34,786 you know, back in the day 701 00:26:35,520 --> 00:26:37,075 you didn't see a lot of 702 00:26:38,007 --> 00:26:42,119 bigger deals in our market, but now as people's and then 703 00:26:42,119 --> 00:26:44,611 we're getting deliveries out of Chicago here 704 00:26:45,251 --> 00:26:48,663 and that was it where now customer base has grown enough 705 00:26:48,663 --> 00:26:51,223 where and nobody likes to wait more than a couple hours 706 00:26:51,223 --> 00:26:52,924 for a package. So now 707 00:26:52,776 --> 00:26:53,268 No. 708 00:26:52,924 --> 00:26:53,474 then 709 00:26:53,349 --> 00:26:54,625 Never. Yeah, that'd 710 00:26:54,535 --> 00:26:54,935 yeah. 711 00:26:54,625 --> 00:26:55,228 be terrible. 712 00:26:56,476 --> 00:26:59,038 And then now so you build, you know, so a lot 713 00:26:59,038 --> 00:27:00,298 of those have now 714 00:27:01,279 --> 00:27:02,340 locations here. 715 00:27:03,070 --> 00:27:06,854 where you just see new companies coming into the market that 716 00:27:06,854 --> 00:27:09,745 have never been here just because they used to be out 717 00:27:09,745 --> 00:27:10,536 of Chicago 718 00:27:10,976 --> 00:27:13,217 and now they're here. And we're kinda you 719 00:27:13,712 --> 00:27:16,308 know, our market is really kinda the end of the supply 720 00:27:16,308 --> 00:27:19,020 chain. You know, like I said it comes out of Chicago 721 00:27:19,220 --> 00:27:20,720 or Kansas City up here 722 00:27:21,121 --> 00:27:23,392 and then from here we're kind of the hub and spoke 723 00:27:23,392 --> 00:27:24,262 and then we go 724 00:27:24,722 --> 00:27:29,172 throughout Minnesota and even, you know, to the Dakotas. 725 00:27:29,513 --> 00:27:32,194 You know, but then that's the next leap is 726 00:27:32,614 --> 00:27:36,425 North and South Dakota, either Sioux Falls or Fargo, now you're 727 00:27:36,425 --> 00:27:37,275 starting to see 728 00:27:37,715 --> 00:27:38,596 kind of that 729 00:27:39,076 --> 00:27:41,617 expansion that we saw a long time ago. 730 00:27:41,617 --> 00:27:43,237 Now people are making that leap. 731 00:27:43,597 --> 00:27:45,798 You know, just going a little further west 'cause you get 732 00:27:46,098 --> 00:27:50,219 then beyond that through the Dakotas, you know, into Montana and 733 00:27:50,219 --> 00:27:50,679 there's just 734 00:27:51,326 --> 00:27:52,747 not the volume of people. 735 00:27:53,683 --> 00:27:54,013 Yeah. 736 00:27:55,136 --> 00:27:55,907 Totally. And 737 00:27:56,381 --> 00:27:59,146 when you think of the new class A, where it's being 738 00:27:59,146 --> 00:28:02,251 built in the Greater Twin Cities area, what are the main 739 00:28:02,251 --> 00:28:02,772 pockets? 740 00:28:03,839 --> 00:28:07,642 you know, obviously everybody's looking for you know, Twin Cities you 741 00:28:07,642 --> 00:28:10,914 have kind of the loop. You have I-94 that comes that's 742 00:28:10,914 --> 00:28:15,367 the east west road. Comes in splits, you have I-694, I-494, 743 00:28:15,647 --> 00:28:18,929 comes back together and continues I-94 out to Fargo. 744 00:28:19,229 --> 00:28:23,517 Then you have I-35, which you know, starts up in Duluth 745 00:28:23,517 --> 00:28:25,168 and ends down in Dallas. 746 00:28:25,748 --> 00:28:28,560 You so that's the main and then that splits the I-35E 747 00:28:28,560 --> 00:28:29,651 and I-35W. 748 00:28:29,198 --> 00:28:32,057 We're gonna have to go north, south, east and west, Duane, 749 00:28:32,057 --> 00:28:32,248 or 750 00:28:32,153 --> 00:28:32,573 Yeah. 751 00:28:32,248 --> 00:28:34,240 I'm gonna my brain's gonna explode. 752 00:28:34,662 --> 00:28:35,013 Yeah. 753 00:28:34,798 --> 00:28:39,592 Yeah, so that kinda creates the loop and then obviously everybody 754 00:28:39,592 --> 00:28:41,033 wants to be as close to the loop. 755 00:28:41,414 --> 00:28:44,196 So you see some development that are just outside of that. 756 00:28:44,196 --> 00:28:47,168 But really has been unique. There's a been a number of 757 00:28:47,168 --> 00:28:48,429 developers here local 758 00:28:49,333 --> 00:28:50,954 recently where they've bought 759 00:28:51,454 --> 00:28:55,736 older non you know some of these single level 760 00:28:56,456 --> 00:29:00,598 office buildings that have a major sea of parking and they've 761 00:29:00,598 --> 00:29:04,740 actually demoed those and put industrial buildings on them just because 762 00:29:04,740 --> 00:29:04,850 of 763 00:29:05,251 --> 00:29:08,572 the locations as kind of inside the loops you're seeing a 764 00:29:08,572 --> 00:29:09,352 number of those 765 00:29:09,793 --> 00:29:13,534 getting done now rather than kinda and there's still 766 00:29:13,935 --> 00:29:14,935 some that are taking 767 00:29:15,486 --> 00:29:18,007 the next ring out to be able to find 768 00:29:18,747 --> 00:29:21,501 know, greenfield sites, you know, so I mean you get a 769 00:29:21,501 --> 00:29:24,965 little out of town and there's still acreage available, but then 770 00:29:24,965 --> 00:29:28,809 again it's access to labor, power, you know, all the usual 771 00:29:28,809 --> 00:29:29,971 requirements that you see. 772 00:29:30,694 --> 00:29:33,150 Yeah, the land of ten thousand lakes, I would think there'd 773 00:29:33,150 --> 00:29:33,992 be plenty of water. 774 00:29:34,761 --> 00:29:35,585 Yes, there is. 775 00:29:36,314 --> 00:29:36,834 Yeah. 776 00:29:37,236 --> 00:29:39,780 I love it. I had gone there to visit a client 777 00:29:39,780 --> 00:29:43,696 last September that you've helped me do some like broker opinions 778 00:29:43,696 --> 00:29:47,158 of value for that in is in the Roseville market or 779 00:29:47,158 --> 00:29:47,899 sub market. 780 00:29:47,641 --> 00:29:48,009 Yeah. 781 00:29:48,319 --> 00:29:50,480 So it's interesting to be up there and then just see 782 00:29:50,480 --> 00:29:50,861 like 783 00:29:51,349 --> 00:29:54,131 the lay of the land, what's out there, how green it 784 00:29:54,131 --> 00:29:55,452 was. I clearly was 785 00:29:55,452 --> 00:29:55,904 Yeah. 786 00:29:55,452 --> 00:29:59,325 there like a fall time and it's so much fun just 787 00:29:59,325 --> 00:30:02,029 to compare 'cause it's such a different environment than what we're 788 00:30:02,029 --> 00:30:02,439 used to. 789 00:30:03,024 --> 00:30:05,137 She just come in the winter when it's twenty five below. 790 00:30:05,536 --> 00:30:08,267 Yeah. The plane wouldn't take me there, it just stopped. 791 00:30:08,328 --> 00:30:09,539 yeah, the door wouldn't open. 792 00:30:10,281 --> 00:30:14,434 funny. And then shallow bay, small bay, that's a thing. 793 00:30:14,514 --> 00:30:16,355 Do you guys have a lot of product there? 794 00:30:16,355 --> 00:30:19,298 Is that anything that's we still build more of, or is 795 00:30:19,298 --> 00:30:20,153 it like hard 796 00:30:20,066 --> 00:30:20,298 no, 797 00:30:20,153 --> 00:30:20,483 to get 798 00:30:20,298 --> 00:30:20,601 I mean 799 00:30:20,483 --> 00:30:20,633 your 800 00:30:20,601 --> 00:30:20,933 that's 801 00:30:20,633 --> 00:30:23,134 hands on? A lot of people it's exciting, it's like the 802 00:30:23,134 --> 00:30:25,299 new multifamily with a lot 803 00:30:25,289 --> 00:30:25,730 Yeah. 804 00:30:25,299 --> 00:30:26,740 of operators trying to buy it. 805 00:30:27,393 --> 00:30:29,265 Yep, I mean you're starting to see a few of those 806 00:30:29,265 --> 00:30:30,858 come in, but again I think it's 807 00:30:31,319 --> 00:30:34,464 cost of construction, you know, with all the demising walls and 808 00:30:34,464 --> 00:30:37,659 separate you know, with the separate meters and you know, for 809 00:30:37,659 --> 00:30:38,771 all the utilities. 810 00:30:39,448 --> 00:30:41,419 you know, you're starting to see a few of 'em that 811 00:30:41,419 --> 00:30:44,120 have come up and we've had a got one client that's 812 00:30:44,120 --> 00:30:47,571 looking at doing a you know, doing about a eleven thousand 813 00:30:47,571 --> 00:30:49,743 square foot building so that you don't have to do sprinklers 814 00:30:49,743 --> 00:30:51,334 in it, but you know, drive ins, 815 00:30:51,754 --> 00:30:53,905 you know, for those small contractors and things. 816 00:30:53,905 --> 00:30:56,256 So you're starting to see a few of those pop up. 817 00:30:56,796 --> 00:30:58,417 But you know, our market was, 818 00:30:58,917 --> 00:31:02,139 you know, back in the day was all fourteen to eighteen 819 00:31:02,139 --> 00:31:05,560 clear. And then twenty four clear was the next step and 820 00:31:05,760 --> 00:31:06,291 people thought, 821 00:31:06,119 --> 00:31:06,681 Class 822 00:31:06,291 --> 00:31:06,721 Oh boy, 823 00:31:06,681 --> 00:31:06,859 A, 824 00:31:06,721 --> 00:31:07,081 that's 825 00:31:07,063 --> 00:31:07,685 twenty four 826 00:31:07,581 --> 00:31:07,831 and 827 00:31:07,685 --> 00:31:08,016 foot. 828 00:31:07,831 --> 00:31:11,569 yeah, and then you know 32 is still kind of the 829 00:31:11,849 --> 00:31:16,132 max in our market obviously there's a couple of outliers that 830 00:31:16,133 --> 00:31:17,633 you know go a little bit taller 831 00:31:18,034 --> 00:31:20,996 but you know the buildings that most people build are kind 832 00:31:20,996 --> 00:31:21,856 of that 32 833 00:31:22,510 --> 00:31:23,590 and then now that 834 00:31:24,090 --> 00:31:27,763 if it if 32 doesn't work you'll see 28 that gives 835 00:31:27,763 --> 00:31:29,594 you the flexibility 836 00:31:30,095 --> 00:31:33,057 to go a little higher but if you don't have the 837 00:31:33,057 --> 00:31:36,559 truck court the trailer parking going all the way to 32 838 00:31:36,680 --> 00:31:39,833 with your you know column spacing it you know it just 839 00:31:39,833 --> 00:31:42,618 makes it a little challenging where at a 28 you can 840 00:31:42,618 --> 00:31:46,174 still have smaller tenants and you know have a little bit 841 00:31:46,174 --> 00:31:47,096 more office finish 842 00:31:48,054 --> 00:31:48,454 Yeah. 843 00:31:49,634 --> 00:31:53,363 Yeah. It's yeah, now having class A and how much it 844 00:31:53,363 --> 00:31:56,303 gets built and who ends up taking it and when is 845 00:31:56,303 --> 00:31:56,453 it 846 00:31:56,397 --> 00:31:56,756 Yeah. 847 00:31:56,453 --> 00:31:59,420 on sale? And like I love when it's on sale and 848 00:31:59,420 --> 00:32:02,398 then you'll have people move up, like the proverbial flight to 849 00:32:02,398 --> 00:32:03,048 quality 850 00:32:03,448 --> 00:32:03,688 and 851 00:32:03,516 --> 00:32:03,856 Yeah. 852 00:32:03,688 --> 00:32:07,102 that be like a thing. Would you say in the cycle 853 00:32:07,122 --> 00:32:11,058 you guys I have noticed here like we peaked pretty hard 854 00:32:11,058 --> 00:32:14,029 during COVID. Now we're down in the trough. 855 00:32:14,253 --> 00:32:16,885 And like a rates have gone down forty percent. 856 00:32:17,465 --> 00:32:17,705 And 857 00:32:17,506 --> 00:32:17,843 Wow. 858 00:32:17,705 --> 00:32:21,008 then if you think of like next to us in Phoenix 859 00:32:21,068 --> 00:32:22,068 as an example, 860 00:32:22,504 --> 00:32:23,085 rates 861 00:32:23,579 --> 00:32:24,440 were strong. 862 00:32:25,182 --> 00:32:29,494 they never peaked too hard, they didn't have a trough, and 863 00:32:29,494 --> 00:32:30,385 now they're up 864 00:32:30,886 --> 00:32:34,828 thirty percent from what they were like a pandemic time frame. 865 00:32:35,249 --> 00:32:37,325 So how did you guys experience it? 866 00:32:37,378 --> 00:32:40,398 are you in a trough? Did you not really like have 867 00:32:40,828 --> 00:32:43,990 Too big of like this eight the eight to four that 868 00:32:43,990 --> 00:32:46,595 turned into the nine to five or the ten to six, 869 00:32:46,595 --> 00:32:46,956 the new 870 00:32:46,751 --> 00:32:47,621 Yeah, 871 00:32:46,956 --> 00:32:47,718 band? Did we 872 00:32:47,621 --> 00:32:48,011 no. 873 00:32:47,718 --> 00:32:47,988 not 874 00:32:48,011 --> 00:32:48,192 I 875 00:32:48,169 --> 00:32:48,339 hit 876 00:32:48,192 --> 00:32:48,542 mean 877 00:32:49,275 --> 00:32:50,936 I would say, you know, we 878 00:32:51,437 --> 00:32:54,505 the increases aren't as much. they're more stabilized now. 879 00:32:55,386 --> 00:32:59,266 you know, spec has slowed a little bit just because of 880 00:32:59,428 --> 00:33:02,908 rates having caught up to the cost of new construction, you 881 00:33:02,908 --> 00:33:06,571 know, your financing and your exit cap rates, all of those 882 00:33:06,571 --> 00:33:07,962 make it a little more challenging. 883 00:33:07,962 --> 00:33:08,332 So 884 00:33:08,812 --> 00:33:10,143 I mean we probably have 885 00:33:10,729 --> 00:33:14,050 about seven million square feet of new stuff coming up and 886 00:33:14,490 --> 00:33:17,802 I mean it's probably five hundred or five million of that 887 00:33:17,802 --> 00:33:18,092 is 888 00:33:19,093 --> 00:33:22,314 is build-to-suits. So I mean there's not a whole lot of 889 00:33:22,674 --> 00:33:24,155 spec going up right now. 890 00:33:24,715 --> 00:33:26,077 You know, so there's 891 00:33:26,823 --> 00:33:31,053 that's and that, you know, going back to another old AMB 892 00:33:31,053 --> 00:33:33,656 story, that was back in 893 00:33:34,080 --> 00:33:37,103 oh eight or so when we had the you know, original 894 00:33:37,103 --> 00:33:37,764 meltdown. 895 00:33:38,504 --> 00:33:40,467 And kind of right during that 896 00:33:41,748 --> 00:33:45,960 they sold their entire portfolio in the Twin Cities and talking 897 00:33:45,960 --> 00:33:47,771 to them, you're like, Who what are you guys doing? 898 00:33:47,771 --> 00:33:49,891 Selling in, you know, the down market. 899 00:33:49,891 --> 00:33:53,413 And they just said, you know, the Twin Cities, you guys 900 00:33:53,413 --> 00:33:54,684 are kinda like a bond market. 901 00:33:54,684 --> 00:33:57,095 You don't really go up, you don't really go down. 902 00:33:57,455 --> 00:33:58,086 We're still 903 00:33:58,881 --> 00:34:02,023 up in this market and we can deploy these 904 00:34:02,643 --> 00:34:05,794 this money on the coast and we can make way more 905 00:34:05,794 --> 00:34:06,205 money 906 00:34:07,465 --> 00:34:10,567 riding the next cycle up than we could holding these assets 907 00:34:10,567 --> 00:34:10,867 here. 908 00:34:11,297 --> 00:34:13,689 So I mean that's I mean we've got a you know 909 00:34:13,689 --> 00:34:14,649 very diverse 910 00:34:15,270 --> 00:34:18,604 base of Fortune 500 companies here 911 00:34:19,185 --> 00:34:21,766 and you know good education, good workforce. 912 00:34:22,422 --> 00:34:23,142 you know, so 913 00:34:23,630 --> 00:34:27,453 it's a pretty stable market, so we don't see these major 914 00:34:27,453 --> 00:34:29,594 swings that you see in other markets. 915 00:34:30,724 --> 00:34:34,888 Yeah, I love that. That's consistency and predictability. 916 00:34:35,126 --> 00:34:35,697 Yeah. 917 00:34:35,329 --> 00:34:38,611 Gosh, you don't value 'em until you've experienced the other side. 918 00:34:38,611 --> 00:34:39,282 And then you're like, 919 00:34:39,261 --> 00:34:39,373 yeah, 920 00:34:39,282 --> 00:34:39,852 okay, 921 00:34:39,373 --> 00:34:40,117 exactly. 922 00:34:39,852 --> 00:34:42,754 I would prefer to just kinda know what I'm gonna be 923 00:34:42,754 --> 00:34:43,375 getting and 924 00:34:43,339 --> 00:34:43,707 Yeah. 925 00:34:43,375 --> 00:34:46,326 like plan accordingly rather than have like 926 00:34:45,952 --> 00:34:46,289 Yeah. 927 00:34:46,326 --> 00:34:48,368 a chaotic experience. 928 00:34:49,023 --> 00:34:49,308 Yeah. 929 00:34:50,212 --> 00:34:52,504 I did some work for DiaSorin for a long time. 930 00:34:52,504 --> 00:34:55,066 We did a big deal down here and there up in 931 00:34:55,143 --> 00:34:56,204 your area as well. 932 00:34:56,612 --> 00:34:59,528 It's DiaSorin Molecular, and then they were making a lot of 933 00:34:59,528 --> 00:35:02,939 the machines that would process COVID tests and they would make 934 00:35:02,939 --> 00:35:06,282 'em for hospitals. And that was when I first learned that 935 00:35:06,282 --> 00:35:09,123 like there is a life science industry up there and like 936 00:35:09,123 --> 00:35:09,813 it is pretty well 937 00:35:09,665 --> 00:35:11,768 Mm-hmm. 938 00:35:09,813 --> 00:35:12,734 diversified. So it was cool to work with them on it. 939 00:35:12,734 --> 00:35:15,105 And though we have not done a Minnesota deal with them 940 00:35:15,105 --> 00:35:15,965 yet, maybe 941 00:35:15,895 --> 00:35:16,255 Yeah. 942 00:35:16,705 --> 00:35:17,226 always keep 943 00:35:17,176 --> 00:35:17,537 Maybe 944 00:35:17,226 --> 00:35:17,546 that on 945 00:35:17,537 --> 00:35:17,797 soon. 946 00:35:17,546 --> 00:35:18,136 the radar. 947 00:35:18,258 --> 00:35:18,598 Yeah, 948 00:35:19,259 --> 00:35:20,440 and that's you know, like 949 00:35:20,840 --> 00:35:25,565 Boston Scientific is here and I think Boston Scientific has more 950 00:35:25,725 --> 00:35:26,606 people in 951 00:35:27,087 --> 00:35:29,419 Minnesota than they do out east. 952 00:35:29,419 --> 00:35:31,421 They've 953 00:35:30,134 --> 00:35:31,301 Okay. Yeah. 954 00:35:31,421 --> 00:35:34,414 got a you know, and then obviously Medtronic is here. 955 00:35:35,235 --> 00:35:37,806 Yeah, and that's what you see on the whole medical devices, 956 00:35:37,806 --> 00:35:42,478 these companies, a lot of people spin out of 'em, create 957 00:35:42,538 --> 00:35:43,339 startups, 958 00:35:43,739 --> 00:35:46,060 grow 'em to the point. Because if you look at medical 959 00:35:46,060 --> 00:35:47,721 device and all that, it's 960 00:35:48,121 --> 00:35:50,452 they get to a certain level and then they just disappear 961 00:35:50,452 --> 00:35:53,684 because one of the biggest just gobble 'em up and then 962 00:35:54,224 --> 00:35:57,415 spin these guys back out and create a new company and 963 00:35:57,415 --> 00:35:59,166 they just you have kind of these 964 00:35:59,586 --> 00:36:01,827 perpetual entrepreneurial kind of 965 00:36:02,388 --> 00:36:04,789 people that have kind of come out of that world where 966 00:36:04,789 --> 00:36:08,042 they've developed develop product, get bought out, start a new product, 967 00:36:08,223 --> 00:36:10,804 get bought out, and they just you know they pop up, 968 00:36:11,084 --> 00:36:13,685 same people, different name and another location. 969 00:36:14,498 --> 00:36:17,739 Yeah, serial entrepreneurs. We need those guys. 970 00:36:18,316 --> 00:36:18,653 Yes. 971 00:36:19,090 --> 00:36:22,741 I got last topic for you, Duane, is buying buildings, investing. 972 00:36:22,821 --> 00:36:25,663 Would you some people stay out of it and then just 973 00:36:25,717 --> 00:36:29,795 go regular stock market. some people are like trying to buy 974 00:36:29,835 --> 00:36:33,535 and do buy buildings with clients, or invest in other developer 975 00:36:33,535 --> 00:36:36,156 and investors' deals or they buy Prologis stock. 976 00:36:36,496 --> 00:36:38,452 What's your version? What do you like to do? 977 00:36:38,982 --> 00:36:40,268 When it comes to like investing? 978 00:36:41,164 --> 00:36:43,051 All the above. you know, I 979 00:36:44,151 --> 00:36:46,522 kind of I've always thought just kind of scatter a little 980 00:36:46,522 --> 00:36:50,147 bit everywhere, you know, and you know, it'll all come up. 981 00:36:50,147 --> 00:36:53,128 But no, I think just for us within the business, 982 00:36:53,569 --> 00:36:57,290 the ownership of real estate, obviously you always think 983 00:36:57,911 --> 00:36:59,951 you don't have enough money to do it when you're younger, 984 00:36:59,951 --> 00:37:02,343 but then you always as you get older you think, God, 985 00:37:02,343 --> 00:37:04,634 I wish I would have invested more into real estate. 986 00:37:04,934 --> 00:37:05,254 And you 987 00:37:05,181 --> 00:37:05,491 Yes. 988 00:37:05,254 --> 00:37:06,905 know, just with the depreciation 989 00:37:07,332 --> 00:37:11,564 with the appreciation of the asset and the benefits we have 990 00:37:11,704 --> 00:37:12,064 as 991 00:37:12,665 --> 00:37:13,105 being 992 00:37:13,605 --> 00:37:15,496 in the business per the tax 993 00:37:15,271 --> 00:37:15,572 Yep. 994 00:37:15,496 --> 00:37:15,906 code. 995 00:37:16,458 --> 00:37:16,718 Yep. 996 00:37:16,786 --> 00:37:17,366 it just 997 00:37:18,046 --> 00:37:18,987 i that's 998 00:37:19,428 --> 00:37:22,619 really the place for us and as we talk here 999 00:37:22,619 --> 00:37:27,360 there's really a difference between making good money and building 1000 00:37:27,360 --> 00:37:27,790 wealth. 1001 00:37:28,486 --> 00:37:28,781 Yes. 1002 00:37:28,931 --> 00:37:30,651 And those are two different things. 1003 00:37:31,051 --> 00:37:31,591 And it's 1004 00:37:31,696 --> 00:37:31,937 Don't 1005 00:37:31,791 --> 00:37:32,228 having 1006 00:37:31,937 --> 00:37:32,278 get 'em 1007 00:37:32,228 --> 00:37:32,311 the 1008 00:37:32,278 --> 00:37:32,839 twisted. 1009 00:37:32,311 --> 00:37:33,992 Yeah. 1010 00:37:33,576 --> 00:37:34,016 Yeah. 1011 00:37:34,636 --> 00:37:37,588 And I think, you know, that's another unique thing about Lee 1012 00:37:37,588 --> 00:37:39,258 that really allows people 1013 00:37:39,859 --> 00:37:44,111 to help build wealth, you know, through the entrepreneurial nature, your 1014 00:37:44,111 --> 00:37:45,222 ability to do deals, 1015 00:37:45,782 --> 00:37:49,476 your ability to invest into deals, invest into other offices, you 1016 00:37:49,476 --> 00:37:50,445 know, the AEF 1017 00:37:49,926 --> 00:37:50,237 Yeah. 1018 00:37:50,445 --> 00:37:51,505 funds, all 1019 00:37:51,466 --> 00:37:51,788 Yeah. 1020 00:37:51,505 --> 00:37:54,807 the people that syndicate deals, and you just throw money all 1021 00:37:54,807 --> 00:37:59,279 around and then have all of it just working together and 1022 00:37:59,279 --> 00:38:02,321 taking advantage of, you know, as I said, us being in 1023 00:38:02,321 --> 00:38:02,931 the business. 1024 00:38:03,908 --> 00:38:08,112 Yeah. It's wild how many people syndicate deals in your marketplace. 1025 00:38:08,112 --> 00:38:10,755 Once you open your eyes to it and you know who 1026 00:38:10,815 --> 00:38:12,276 all the main players are, 1027 00:38:12,777 --> 00:38:15,594 and then it's pretty cool there's quite a bit of opportunity. 1028 00:38:16,328 --> 00:38:16,731 Yeah. 1029 00:38:17,462 --> 00:38:20,403 Nice. I've taken a Duane approach to myself. 1030 00:38:20,403 --> 00:38:20,724 It's 1031 00:38:21,293 --> 00:38:24,292 every year is a little bit I'm a new person, I 1032 00:38:24,292 --> 00:38:26,956 have a different amount available, I may have another 1033 00:38:26,685 --> 00:38:26,960 Yeah. 1034 00:38:26,956 --> 00:38:30,433 amount that came out of a prior deal, and then to 1035 00:38:30,433 --> 00:38:33,355 try and like rebalance and figure out like, okay, in today's 1036 00:38:33,355 --> 00:38:34,875 environment what should we be doing? 1037 00:38:35,236 --> 00:38:38,387 So it is fun to have all of those available to 1038 00:38:38,387 --> 00:38:39,377 you and then figure out which 1039 00:38:39,261 --> 00:38:39,547 Yeah. 1040 00:38:39,377 --> 00:38:42,589 one makes sense for this pile at this point in time. 1041 00:38:42,921 --> 00:38:43,335 Yeah. 1042 00:38:43,862 --> 00:38:44,285 Yep. 1043 00:38:45,045 --> 00:38:48,189 Cool. Well let's get out there and make it happen, Duane. 1044 00:38:48,209 --> 00:38:48,629 Yeah, 1045 00:38:48,369 --> 00:38:48,811 Yeah. 1046 00:38:48,629 --> 00:38:50,542 I appreciate you spending time. It's fun to get 1047 00:38:50,443 --> 00:38:50,844 Yeah. 1048 00:38:50,542 --> 00:38:52,684 to know you better and learn about the market and the 1049 00:38:52,684 --> 00:38:54,677 office and part of your journey. 1050 00:38:55,421 --> 00:38:57,408 Yeah, no, I appreciate. Thank you for having me on. 1051 00:38:58,302 --> 00:39:00,585 Yeah, super. Okay, well I'll catch you later. 1052 00:39:01,234 --> 00:39:02,378 Sounds good. Thanks. 1053 00:39:02,167 --> 00:39:03,249 Okay, see Duane. 1054 00:39:03,744 --> 00:39:04,145 Bye. 1055 00:39:03,910 --> 00:39:04,570 Yep, bye.