Transcript preview
Preview only
Today's episode is brought to you by the Fundrise Income Fund. You'll hear more about the Income Fund later in the show, but for now, let's get into today's interview. Today, we're gonna be talking all things real estate. I'm joined by Josh Pristow, managing director and president of Clarion Partners, a real estate investment firm managing over $70,000,000,000. Josh, welcome to Monetary Matters.
Thanks, Jack. Pleasure to be here.
So, Josh, you've got a huge portfolio in industrial apartments or multifamily, and I know you're also investing in senior living. So I want to get into that. But first, let's talk about a giant boom in the real estate market, which is data centers. Many of your competitors are plowing billions and billions of dollars into data centers. Are you involved, and why or why not?
We're not directly involved, so we haven't made any investments specifically in the construction of data centers. Where we are somewhat on the on the periphery, but benefiting from that boom, I would argue in a lower risk way, is in our industrial business. As you mentioned, we're pretty significant there. We've got about $42,000,000,000 of industrial logistics assets in The United States. And so we are benefiting from the supply chain. So a lot of the the subcontractors, the people that are storing and manufacturing equipment that eventually goes into data centers are our tenants, and we're s
Several of your investments are are indirect beneficiaries from the data center boom because they're logistical, but you currently don't have any direct investments in data centers. And Josh, I think what you're saying is that even though you're you're one of the largest real estate investors, that the check size is just too high and for you to remain diversified. So that that is really striking to me. It just shows just how large the capital demands are and kinda just how how how how kind of crazy it is.
Yeah. To to build on that, the if you look at according to Jones Lang LaSalle, the the total sort of North American data center construction phase right now that's underway is about a trillion dollars. That largely excludes what the the tenants are gonna the hyperscalers that are invest in that space. So a pretty significant investment. As I mentioned, the whole institutional core real estate index is $280,000,000,000. So, like, there's three x all of the core real estate owned by institutions is under construction or in planning in data So when we look at it, I think the absorption of that, o
Tell us about you said it's gonna take longer than people expected. You you we we are seeing headlines of data centers are being delayed. Tell us just how significant that is.
Yeah. So I was alluding to something slightly different, but I think the what what you're talking about is, you know, I'll go back to the demand for the computing power, the the sort of the tenant need and ultimately the consumer need is self evident. Right? Like, more and more people are adopting these AI tools. It's creating demand for more data center space. But, like, building and delivering these things is essentially, like, you know, that is that is not a futuristic, like, exercise. That requires municipalities approving it. It requires utilities building power lines and water and sewer,
You're yeah. You're talking about just the pure finances that the the buyers of the the data centers don't have as much money as as the data centers are kinda now worth and being constructed, and that someone's gotta buy that. And if someone's taking a risk, maybe in like a closed ended fund or an instituti
Keep exploring with a free account.
A free account preserves the short preview. Upgrade to Pro for the full transcript and episode chat.