With the mercurial rise of co-working companies like WeWork, and large corporations increasingly turning to freelance work, office developers are being forced to adapt in new and innovative ways. New York real estate investor Jacob Frydman recently addressed these unprecedented changes in commercial real estate, including the deviation from traditional workspaces to the development of high performance office spaces that feature flexible leases and impressive amenities.
Commercial trends of the past few years, such as businesses seeking shorter leases and turning progressively to remote workers, have culminated in a revolution that has been dubbed the “Uber Phenomenon.” A traditionally slow changing industry, real estate developers are being forced to rapidly implement user-friendly tech and lease options in their buildings in order to please a younger, yet demanding workforce. Frydman emphasized that those who don’t recognize the market’s needs risk being overwhelmed by innovative disruptors, akin to what Uber did to a well entrenched, monopolized taxi industry.
High performance offices are designed to induce productivity, and developers are aligning with company’s increasingly worker friendly objectives and work processes. Apart from amenities such as juice bars, lounge rooms and fitness centers, these workspaces often offer flexible, short-term leases and the option to sublease. Developers are embracing co-working and office sharing, industries currently undergoing exponential growth, where space is rented or sublet to freelancers or small businesses that do not want or cannot afford a large office.
Businesses’ globally are shifting towards values of happiness, purpose and meaning. Frydman believes that embracing these trends will lead to workplaces that not only increase tenants’ profits, but also enhance employees’ daily life experiences, and ultimately to a competitive advantage in an advancing industry.
Jacob Frydman has over 30 years of experience in structuring, financing and executing highly complex real estate transactions. Notable achievements of his career include Two Dag Hammarskjöld Plaza, an office condominium tower in midtown Manhattan used by foreign governments for their missions to the United Nations, and redeveloping the Aetna Building in lower Manhattan’s financial district. An avid philanthropist, he has been a firm supporter of Chabad of Dutchess County, the Brem Foundation to Defeat Breast Cancer, and other organizations. He generously dedicates much of his time and capital to programs aimed at helping people in struggling communities, and is proud to have recently joined the National Committee for Furtherance of Jewish Education (NCFJE) in support of its Released Time program of Greater New York.
Jacob Frydman — Discusses Current Trends in Commercial Real Estate: http://finance.yahoo.com/news/jacob-frydman-discusses-current-trends-032355134.html
Jacob Frydman – Huffington Post: http://www.huffingtonpost.com/author/jacob-frydman