I'd like to ask you, Joanna Frank, what is the Biggest Risk?
Joanna Frank 36:51
the people in your buildings, because as we've talked about it is people that really decide value by what we value as people and our society translates into the value of your asset. So that kind of comes back to why location, why is this location more valuable than another location it is because we, as people value those attributes. And we can see that and we can correlate it with real data, right. So we as people value being in a neighborhood that is walkable, and there is a lot of data, a lot of stats that shows the direct correlation between the increasing amount of walkability of the location and that increase in value. So, so we as people are going to, we're going to decide when a building or when a property is really good for us and good for our businesses way before the physical risk that we're going to see if we're talking about climate change as an example. flood risk is a good one, just because if you're looking at flood risk from a When will my property flood physically, that is obviously the risk to the bricks and mortar way in advance of that physical event of flooding, that property is going to lose value, because of the perception from people of the risk of that flood, I am not going to move my business into that building, because that building is in a flood zone. And I don't want to take the risk of whenever that flood occurs because of the disruption to my business because of putting my people in harm's way. So the value and the risk associated with that flood is happening way in advance of the physical flooding, because we as people aren't going to be building that into our assessment of value. Likewise, the temperature change, right, some cities, some regions are going to become less and less optimum for people to thrive, and therefore that's going to start to affect people's willingness to move there. Right? If it's 120 degrees on the high street, like that is no longer an optimum environment for people it is actually suboptimal, right. So now you have an issue about value for that real estate, the buildings will be fine. But as people will say, I don't want to live that right, that's too hot. I don't want to have air conditioning on all the time. And then of course, we can have a whole energy conversation. Likewise, air quality, the air quality is going to affect my quality of life, my tenants and my my family. I'm going to start to bake that into whether I value this location or how I value this location. So it is people that are really driving value of real estate and it is people who are going to be the greatest risk factor because of climate change. And because of all of these other societal changes way in advance of buildings starting to have the Like, you know, physical implications on buildings?