According to the worldwide management consulting agency McKinsey & Company, nearly all industries are faced with some type of digital delay. Historically, commercial real estate (CRE) maintained a culture of cautious strategies and resisted many major changes. However, today’s new technologies and digitalization are adopted as assets more and more even by the most staunch market conservatives. Internationally-renowned real estate investment consultant and CEO of Frydco Capital Group, — Jacob Frydman talks about the role new technologies play in reshaping the present and the future of the CRE industry.
Despite the growing trend for consumers to shop via ecommerce platforms, retail rent pricing in major cities across the globe remains sky high. In the United States, commercial real estate is estimated to be the country’s largest economic asset with $24.14 billion invested in the first half of 2018 alone. This behemoth industry offers vast opportunities for digitalization and as such, has attracted ecommerce platforms such as Ten-X which aims to fundamentally change the experience of investing in CRE. The company has processed over $20 billion in CRE transactions since its launch in 2009 and works towards simplifying and streamlining the work of brokers worldwide. Ten-X is not alone in the scramble to align with a business niche that generates nearly $1 trillion in revenues annually. Inspired by the success of Airbnb and WeWork, venture investors deployed over $5 billion in 2017 to engineer software and platforms with an aim to revolutionizing the CRE market as we know it.
In the U.S.A. the transition to a new, digital ecosystem for residential real estate transactions is already clearly evident in a multitude of cloud based data streams delivering faster and more customer friendly service to the average consumer. This has empowered property developers and owners to better market, manage, maintain and monetize their assets. Looking purely at CRE investments, Jacob Frydman sees the real advantage of technology implementation as a massive time-saver (freeing up brokers from manual and repetitive tasks) and facilitator of fluid communication by providing multiple parties with real-time data access. This results in greater opportunity for relationship and network building between agents, investors and sellers with much less time spent on administrative workflows. Technology has also benefitted the industry by generating greater accessibility to new demographics through virtual property tours, purchase facilitators and remote management service providers.
Jacob Frydman is a leading real estate investor and consultant based in New York City. He graduated from Boston University with a BS in Finance and a JD from Case Western Reserve University School of Law. Frydman has been a frequent guest speaker at the New York Law School and at Columbia University where he lectured on real estate and finance. He has gained international recognition through his successful investment portfolio of property development projects implemented over the last 30 years and valued at over $2 billion. He is also a dedicated philanthropist and generous contributor to various charitable organizations. He has served on the Board of the Jewish Federation of Dutchess County, NY, and has been an avid supporter of the National Committee for Furtherance of Jewish Education (NCFJE), Chabad of Duchess Country, and the Brem Foundation of Washington, DC.
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Jacob Frydman -- Huffington Post: http://www.huffingtonpost.com/author/jacob-frydman
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