How This Real Estate Investor is Betting on an AI Boom (It’s Not Data Centers) | Tom Shapiro
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Inflation are obviously a big concern, but a lot of ways real estate is somewhat of a hedge to inflation. It's one of the aspects we we we are concerned about, but frankly, you know, I think there's a lot of other issues and areas that we have, you know, much greater concern. Employment is a big concern across all of our asset classes that we invest in. So there are less jobs. That means there's less demand for housing, AI, supply, etcetera, you know, I think are more are are much bigger concerns right now than just the inflationary part of what's happening in the economic cycle.
This episode is brought to you by Fundrise. Later on, you'll hear more about the Fundrise income fund and why sophisticated investors are turning to higher yielding asset classes like real estate private credit. For now, let's get into today's interview. Welcome to Other People's Money. I'm Mac Sweetie, and today I'm joined by Tom Shapiro, president, founder, and CIO of global real estate firm, GTIS Partners. Tom, thank you for coming on the show.
Max, thanks so much for having me. Really appreciate it.
Alright. Well, I said you're a global real estate firm. That can mean many different things. Just briefly, can you give us an overview of what you guys specialize in?
Sure. We really have two businesses. One, is down in Brazil. One of the first places we started when we started the firm in 2005. We're a very active developer of multiple asset classes. We develop office, industrial, apartments, and hotels. And in The US, we really focus on residential, variety of different forms of residential, as well as logistics industrial.
I like to think that real estate is one of the sort of ultimate macro assets up there with bonds, currencies, just really sensitive to the macro environment. We're in an interesting shifting moment right now with the war in Iran, and I'm wondering how are real estate investors like you thinking about the potential for a bit of inflation?
Sure. I mean, of course, all of us are trying to think past of what happens after the Iran war ends, which hopefully will happen soon, but it does seem to be dragging on longer than I think most of us anticipated. Inflation are obviously a big concern, but a lot of ways, real estate is somewhat of a hedge to inflation. You know, clearly, you know, rents move up with inflationary pressures. So, it's one of the aspects we we we are concerned about, but frankly, you know, I think there's a lot of other issues and areas that we have, you know, much greater concern, AI, supply, etcetera, you know,
So you brought in AI. I wasn't expecting to talk too much about AI in a real estate interview. Why is it having you concerned?
Well, it does affect a lot of different aspects of business. You know, certainly, you know, employment is a big concern across all of our asset classes that we invest in. So there are less jobs. That means there's less demand for housing. You know, we saw this in the global financial crisis when generally we produce about one. 2,000,000 households a year and that dropped to six, seven hundred thousand and that was because people doubled and tripled up because they didn't have jobs. So, they when they graduated college, they moved into their parents' basement. So, you know, we look at, frankly,
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