Autonomous cars will have a bigger affect on commercial real estate than Interest rates

Autonomous cars will have a bigger effect on commercial real estate and the rising interest rates and I would even go as far as saying the rent regulation laws in New York for unstabilized properties. Here's why. So, first of all, just understand Whimo taxis operate just in different parts of the country. Just last week, Department of Transportation came out that they're starting to regulate and set up rules and regulations for how they're going to allow autonomous cars to go into the road. So let me take you a step back to understand how commercial real estate valuations started earlier on. Someone have a building. The first question I remember sending in deals to a bank would be how close is this building to public transportation? Is it walking distance? Is it not walking distance? How far is the drive? And the further someone was from public transportation, the rents were a little bit lower because if I could leave my apartment, walk down two flights of stairs or one flight of stairs, and right outside, let's say there's a subway station and go pick up the train, I'm saving on a commute in the morning. If I have to walk a couple of blocks, I'll pay a little bit less. So, that was part of the discussion, part of the conversation. Why? That's number one. Number two, let's take a little bit broader. What happens suburban life, city life, if I have to commute to work? Such a drain on my family life. I don't want to travel an hour every day, an hour and a half every day work or an hour each way or an hour and a half each way. So instead, I'd rather pay a premium to be in the city. So people don't want to live in suburbans, suburban markets. That's how people made decisions. If you take a little bit different approach, look at the highway. You have a lot of these motel, these motel along the highway along route route 90 going up the 95. Those hotels are there that if you if for the most part someone's traveling, they have to traveling through the night, they have to go go to sleep, they pull over to one of those hotels, they check in, they leave in the morning, and they keep traveling on the road. So these are on the lowest level. When autonomous cars come into the marketplace, what's going to change is no one's going to think that much about where they live in compared to their commute. Because if you can actually go into an autonomous car and forget about the other changes for a second, we'll get to about car ownership and all that. Just simply put, if cars would actually drive totally by themselves, are you going to care if you have to commute an hour to work? What's the difference if I'm sitting by my desk or if I'm sitting in a car for that hour? I personally do a lot of work in my car. I'm set up to do a Zoom call in my car at any at any time whether I'm in the driver's seat or the passenger seat. I have I have a clip set up to put the phone in there. I don't mind. So for other people, if they're driving, yes, for the most part, you can't do other type of work. What happens if I didn't have to drive at all? What I'm sitting in a car and I have all the relaxation. I can bring my computer with me. So I work in my office six hours a day. One hour on the way there, one hour on the way home. That's people have a different approach. suburban life valuations could stop moving up because more people can move out to to the suburbs. In the city, it could also change. There are certain people who didn't want to be there now would leave. And where's the balance going to fall out? That's just on one level. The second level is also going to change in which I said before about car ownership because right now you want to have a car for a couple of reasons. Let's go by the second car first to start or just in general car ownership is I want to go somewhere I have to go. I have to know I could go at any time. In my neighborhood, Uber doesn't come that that often or it's expensive. It's not worth having an Uber. It's cheaper to own a car. What happens when you know you can just press a button? Unlimited Ubers or the price of Uber has dropped. I made a in Florida the price of an Uber is very very cheap and especially if you go a lift versus Uber, you could sometimes be a 25% difference. It's very very cheap. Sometimes it doesn't pay to rent the car when you go to Florida. In New York, New Jersey, it's going to be much more expensive. So ownership, sometimes you need the ownership, especially if you're traveling a lot. What would happen if there's an autonomous car, the price to get the car could be a half 50 to 60% cheaper than what it is today? Because the labor of the human that's driving is going to be out there. So because that's out, if and I know if there were a lot more cars on the road, I could get cars more often. Why do I need a second car and maybe even a first car? That's going to start to change. The genius of Tesla, which most people don't realize, is that Teslas are built to ultimately be like an Airbnb for cars. You can be able to get a Tesla and the technology is already built now. Get a Tesla, drives you off to work at 9:00 and then you could tell the Tesla, "Come back and pick me up at 6:00 and between 9 and 6, it's going to drive around and be part of the network of Whimo taxes." That is the vision. That's the plan. We could debate is it happening this year, in two years, and five years or 10 years, but it's clearly going to happen. as if you really think about it. Now, think about everyone that has a car, their car is also a Whimo type taxi. And obviously, it's not Whimo, that's the brand that came first, but it's it's an autonomous um um taxi. And you know, you could press a button, you get it. It's also going to change. It's going to change now zoning. Think about now parking. When they build a shopping center, how many spots do they have to have in that shopping center? But can you imagine I get dropped off, I walk into the store, I tell my car to pick me back up when I'm finished, or it's a different car on the way out, I press the button. And if you really think AI is going, as you have to register, it'll automatically order me another taxi. When I walk outside, I'll just go go ahead and get that taxi. So, what's going to happen for apartment buildings? What happens to parking lots throughout cities? Are there parking lots are going to be needed? To what extent is it going to be needed? There's definitely a change going to come with car ownership, parking, and redesigning even highways and roads of of how traffic is going to work. So many things are based on the fact that my only way of transportation is going to be through until now it's my driving myself for the most part isolated times I'll take an Uber or taxi and public transportation how is it going to affect the subway system the trains what's going to change that people go further and further steps about how far out my goal of telling this bringing this out here is to open up your eyes to where the world is going to and where the technology and when it's going to come where do you think that shift is going to be with everything else with everything in the world. There can be rich people and poor people. People are going to lose because of things and benefit because of things. How do you want to position yourself and you're looking out there making decisions of investments, real estate, which neighborhoods people are going to live live in? Why are people going to be scared to have an issue moving out a little bit further? What were the hurdles in the past and has that changed with autonomous cars moving within within a marketplace? The next debate with that is is is home ownership is car ownership really right? How many cars you really going to have? Are you really going to have one car, two cars, three cars for everyone in the family or zero cars? You don't need a car anymore. But I will tell you one interesting perspective that I think it's so important to share. I have a neighbor of mine, a genius, and he told me that he will never go into autonomous car. Now, obviously, I debate him every time I hear stories of more and more people using these Whimo taxis and and people using Teslas and driving themselves, and I and I talked to him about it. But he told me an interesting statistic. Everyone says it's much safer uh autonomous car than it is for a driver. Let's say a normal driver there's a 4% accident rate and autonomous car is 2%. He told me an interesting thing. When you're driving, you have your own choice. You could decide, you know, it's up to you human error, but if you are a safe driver, you could think, hey, I with God's help never get into an accident. I'll always make the right move. Pull out of the way. Everything will be fine. When it comes to autonomous car, when they say there's 2%, 2% are accidents will always happen. That means for every hundred miles that are driven, every 100 cars go out there and drive a couple miles, 2% of them will get into an accident. He says you the choice is gone. Furthermore, who's making a choice for you? Who's making the choice when you're driving the car? When you're driving a car yourself and you see something, you could decide, "Oh my gosh, I want to I'm going to save this. There's one person here or three people here. It's an adult. It's a kid. or if I go this way, I'll kill someone else, but I'll save myself. I go this way, I'll die, but I'll save other people. You don't have those choices when you're driving autonomous car. So, other things have to be worked out without a doubt. Other challenges without a doubt. But the way things are starting to move that people even joke it's going to come to a point that soon you won't be able to drive a car because you're not safe. They don't want humans driving cars. They want all the cars to be autonomous on the road. So, this is just food for thought for all of you. But just beginning to think just like when I came up AI know I you know I coined the line where AI is not replacing anybody. It's those that use AI will replace those that don't. You have to start taking autonomous vehicles seriously. This is why all the companies have move moved in that direction. Department of Transportation is finally starting to set rules and regs on how it's going to work. Hope this is beneficial to