Outbreak. But white house economic adviser larry kudlow tells me hes expecting a doubledigit growth rate for both the third and fourth quarter, expect Unemployment Rate will drop below 10 by the end of the year. A whole lot of indicators, retail sales was a blowout. One after another, Housing Demand is very strong, traveling with the upward mobility index is very strong, new Business Applications very strong. Actually, business opening now, Small Business almost 80 have reopened, one way or another. Shipping, trucking i notice on some of the private sector surveys. So, yeah, i think you can see the v right now, and i think once we get into the summer months expect Third Quarter data, well probably be looking at a 20 percent growth snap pac in q3 and q4. Maria joining me now to discuss this is one of the leaders in the world of investing, gray croft founder, alan patricof. Alan, thank you for joining us. I know you do not agree with larry kudlow about a vshaped recovery, that things will snap back. He just talked about 20 growth in the Third Quarter. How do you see the backdrop . I dont think hes reading the latest covid numbers of cases and deaths. I mean, we are clearly now hitting a porous period, and they have to retreat somewhat in terms of the recovery, in the first place. Secondly, there are a lot of companies who were covered by the first stimulus and were supporting workers during this period of time. The revenue recovery is not fast enough and their stimulus money runs out, were going to see an increase in unemployment my guess is in the middle of july and thereafter. So with an extra stimulus, i think it will be helpful. Without it, i think no matter how much people are anxious to get out and spend, i think its going to be a much slower recovery. Maria in the meanwhile, you are still finding great investing opportunities. I want to ask you about ipos. This week on friday albertsons went public. Initially that deal was priced below expectations. How do you expect the ipo market to trade Going Forward . Where are the highlights on the upside, and whats not working in terms of ipos right now, al ann . Its interesting you say that, because i think whats happened in the ipo market this first half of the year when we had about 50, i think the average isup about 25 or 30 from their filing prices, and they went higher in the pop after the initial filing. Its an anomaly in the fact that in this difficult environment, we have a strong ipo market. The ipo market usually needs windows of exuberance in the marketplace, and then you slip into the window and take out something public. And with a very irregular market, people have still been able to get through that minefield. And i think its an indication that theres a lot of money sitting on the side. Everybody wants to put the money to work, and theres a certain excitement about, particularly about Companies Names that they are familiar with. So, and, of course, zoom was a perfect example. Peloton. Those are companies that Everybody Knows about, and their benefiting theyre benefiting from this period of time. So albertsons will be interesting. Theyve been pending for a long time. Maria yeah. Well see how that comes in maria yeah. Well see how it does over a long period, well see how it does over a long period of time. How are you investing right now, alan . Tell me where youre finding growth in this economy. You have found some great ideas and even Industries Overall that youve bought into at very, the infancy stages. Where are you allocating capital today . Well, weve been, had a limited amount of money, but weve been focusing, i have particularly for the firm, in the podcast area. Weve now made six investments including the leading independent company in the field. Weve also gone into five different technologies from ad attributions with a Company Called pod sites, another called chartable, another one specializing in subscription technologies for the podcast industry which is a real hope for the industry called glow, another company which is dealing with the sounds and cataloging and sound base, and another Company Called stackable which does search and discovery which is probably the answer to podcasting in general, because everybody wants to find something. Podcasting is a very hot area now, as you can see spotify has all of a sudden taken a major interest in this, diversifying the music business or to complement the music subscribers. Thats been a very hot area. We also just made investment this past week im sorry in the real estate area, in case youre interested. Maria and tell me about that. Are you referring to leg . Le . Yes. It was Just Announced publicly on friday that lex has made an aa rangement with nasdaq that we will be able to give liquidity to real estate owners of minority interests and bring the public in as investors in small dollar amounts so that they will be able, for the first time, whether theyre qualified investors or unqualified, theyll be able to buy a stock, in effect, in a real estate, in a segment of a real estate, commercial real estate property. And itll give an opportunity for broad generic ownership of real estate around the country to the individual small investor for the first time. So were very excited about that. Maria alan, great to see you this weekend. Thank you so much for joining me. Alan patricof. Thank you. Maria dont go anywhere, real estate giant phil ruden is next, we will get further into commercial real estate. Stay with us. vo at audi, we design cars that exhilarate with versatility, whether on the track, or the everyday drive. 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With phase two of new york citys reopening now underway, a projected 300,000 people are expected back to work. What will that look like . Challenge of retrofitting business is and Office Spaces postcovid19 has become a priority. And this, to of course, on tom tom on top of this months looting. For more is bill ruden, ceo of ruden management, chairman of the real estate board of new york. Thank you so much for joining me. I want to kick it off with what youve been doing because i love the idea you have now safety handbooks that youre giving to all of your buildings. Tell me how many buildings you have right now in new york and about these safety handbooks. Well, we own about 10 million square feet of office space and about 14 buildings. And we created, with our Operations Team and my daughter and son, this tenant handbook so that once people started onboarding back into the building, which happened started on monday, and everyone knows what the rules of engagement are. Wearing your masks, the flowthrough into the lobby, we have people in the elevator corridors touching the buttons when you say youre going to the a 25th floor, limitation of people in the elevator x. Then we have a handbook for our own employees, you know, talking about always wearing your mask when youre Walking Around the office. We set up Hand Sanitizer stations throughout, we put in sneeze guards limitations into conference areas. All the things that are important to stop the spread of this virus. And you have seen our city and state go from the worst to the best in terms of lowest rates of infection and hospitalization. Youre now seeing in other parts of the country where cities and states went a little too fast opening up, record increases in infection, and i think the governor of texas announced yesterday theyre putting a pause on their phase two of reopening. So we have to take it very carefully and slowly, and thats what that handbook does, reminds our tenants what they should be doing to make sure that they have a safe experience coming back to the office. Maria bill, how will commercial real estate look different once we do get back in . Because i know that theres a lot of plans to do touchless everythingment what kind of an expense are we talking about for companies, and how will your buildings look different in terms of commercial real estate . I know this didnt happen overnight, maybe this is longterm plans, but tell me what youre planning. Weve been planning for a long time. We have a plan to make our buildings smart, the smart buildings, what we call them. We started at 55 broad street downtown right around the corner from the Stock Exchange back in the 90s where we have broadband connectivity, we have easy access to the internet. But now, today, we have a Technology Company that we created called nantun, and it provides our Building Engineers and operators Realtime Data on occupancy, electrical consumption, water consumption, co2 levels, and weve now literally this week started to roll out a tenant app that will give our tenants as theyre coming to the building seeing how many people are in the lobby, they may want to come in quicker or slow down a little bit as people are queuing up to the elevators. But were also giving them Realtime Data on air quality and data points like that so that people feel, again, comfortable coming into the work environment. Maria lets take a break, and well get further into commercial real estate with you. Bill ruden is with us this weekend, got a lot to talk about with him. In the middle of it all with 10 million square feet in new york city. Stay with us, well be right back with more. 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Finally a totally different way to finance your ride. Only from carvana. The new way to buy a car. One of the interesting things that weve learned through this crisis, that teleworking is very effective. I dont think itll ever go back to the way it was before. And there are a lot of people who are going to be able to work from home. Thats going to free up a lot of commercial space, which can be converted to Affordable Housing to take some of the pressure off. And we are very much looking at that right now, looking at ways to be able to facilitate that transformation. Maria and that was ben carson, the secretary of hud, joining me this week on mornings with maria. I am back with bill rudin, and you just heard ben carson talk about commercial real estate and what hes expecting to be a lot of empty floors, you know . Were talking about density of cities and how some people do not want to go back to highfloored buildings, wait on long lines for security, and ben carson says, well, theres going to be a lot of empty space in commercial real estate buildings, ill use that for low Income Housing. What do you say about that . Well, first of all, theres an interesting article in city lab just came out, and it talks about this is not the end of cities. So i think were going to have to look at what the future of cities are, and were going to have to work very hard to look at things possibly converting like we did in the 90s, maria, when you started off down at the Stock Exchange in the early 90s s and we talked about it a lot then. Downtown was a ghost town. There was 30 million square feet of vacant space. We came together, the business community, government, and we created the downtown plan which allowed conversion of older Office Buildings to residential. And back then there was about 0,000 people 10,000 People Living in lower manhattan. Today theres 70,000 people, and about 30 of those people walk to work. So were going to have the look at these type of ideas to reimagine our cities. But people want to be in the cities. Even with all the things that have been going on, this report by a doctor in florida from university of terror coe talks about the powers toronto talks about the powers of cities. We strongly believe and i think other ceos want to get their workers back in to work. Tim cook was talking about the seven diptous meetings that serendipitous meetings that happen when youre in your office, collaboration, that impromtu meeting, even with social distancing thats going to happen that helps reinforce the company s brand, loyalty to the company and makes the people connected who work at the company more connected with each oh. And so thats going to continue to happen. Maria yeah. Were going to have to make changes in terms of the office space, were going to have to deal with, you know, the changes that are happening within our cities. But there is always going to be a place forties and for office space for cities, and theres been dozens of surveys by gensler that did interviews with people. They want to go back to work. They want to be with their coworkers. They want that boundary between work and personal life x thats what the Office Environment does do for the workers maria yeah, no. I totally understand that, and i think [inaudible] maria really, really good points about wall street because, youre right. After 9 11 it was a ghost town. You go down to the new york Stock Exchange, and there are residential buildings right there, and its a very sweet and lovely neighborhood, by the way. But, bill, in terms of what ben carson is saying, so then you would be okay turning some of the floors into commercial building into low Income Housing then . Because it just wasnt equating to have a big Business Building and some of those floors low Income Housing. Thats exactly what ben carson is talking about. Well, i think its going to be a mixture of different type of housing. Weve had a very Successful Program in new york city called 421a where you create Different Levels of housing. You have highend housing, middle Income Housing and low Income Housing. And if thats been going on for decades here in new york city x. Thats the power of our city, is the diversity and the changing nature of neighborhoods. So i think were going to have to take advantage and use whats happened. But i also dont think, i mean, in the last four months if i told you in new york city 2. 5 million square feet of leases were signed, you would probably say thats crazy. But companies like, tiktok, bank of new yorkmellon, dozens of other companies 2,000 feet to 10,000 feet have signed leases during this pandemic. Maria thats terrific. Cities, particularly new york, have been written before maria have you had to adjust pricing . Are you lowering rents because of lower demand . Well, theres been some price adjustment but not that much yet. And were renting our apartments, were seeing demand pick up after, obviously, a period of time where things were on pause. Finish in terms of office space, there was definitely a pause except for these couple million feet of leases. And were just reopened our building in brooklyn at dock 72. You talk about what we need to do, that buildings a perfect example of the smart building. Weve put in all the infrastructure, and we have a food hall thats very large, 15,000 feet, so we can do the social distancing. We have a Health Center also about a 15,000 feet where we can create the spacing. A lot of outdoor space. And so these are the type of buildings that owners