Jacob Frydman Reviews the State of the US Office Market

A robust American economy is strengthening the fundamentals of the country’s office market, keeping vacancy in check and driving asking rents up, according to real estate investment expert Jacob Frydman. Referencing a report from Houston-based commercial real estate company Transwestern, Frydman discussed the sector’s continued steady improvement across the third quarter of 2018, in which absorption (a measurement of the net change of the supply of commercial space) reached 22.7 million square feet, vacancy remained stable at 10.1 percent, and asking rents increased by 4.0 percent, annually. Frydman pointed to the U.S. economy’s recent strong performance as a primary contributor to the office sector’s improving momentum in a tight labor market. “Real gross domestic product increased at an annualized 3.5 percent, according to first estimates, and personal consumption contributed 2.7 percent to that rate,” said the seasoned investor. A strong economy also means more jobs are being added, which has been reflected by office-using employment increasing by 1.7 percent on an annualized basis. “Because inflation has remained in line with the Federal Reserve’s target of 2.0 percent, consumer and business confidence should keep the office market healthy well into 2019.”

Jacob Frydman is the Founder of White Acre Equities investment firm and a Managing Partner at LambdaStar Infrastructure Partners. He has more than 25 years experience in developing and investing in real estate related transactions, having acquired over five million square feet of commercial real estate and participated in over $1 billion of investment and development transactions over the course of his career. Frydman’s notable transactions include the acquisitions of the Global Crossing New York Headquarters, the Aetna Building, the NBC Television Studios and Two Dag Hammarskjold Plaza.

Jacob Frydman – CEO & Chairman – United Realty Advisors, LP – LinkedIn: https://www.linkedin.com/in/jacobfrydman

Jacob Frydman – Huffington Post: http://www.huffingtonpost.com/author/jacob-frydman

 

Jacob Frydman – Examines Potential for Real Estate Investors in the Wake of Inflation Protected Renting

Jacob Frydman has repeatedly warned that an inflationary period in the real estate market is inevitable, at least in part due to rising interest rates. Rates have remained low for quite some time, aided by the Federal Reserve, but are slated to rise and bring property values up. However, Frydman points out that the market is by its very nature cyclical and provides tremendous opportunity even with expected downturns. “What’s ultimately going to happen is an inflationary cycle not unlike what we were experiencing in the late 70’s and early 80’s,” he told an interviewer at Real Estate Finance Intelligence TV. With this in mind, Frydman advises potential investors to purchase properties while the costs are still relatively low and strengthen their asset values during the transition period from one cycle into the next until the market reaches a new high again. Frydman predicts this next peak to take place by the end of this decade.

Jacob Frydman has over 30 years of experience in structuring, financing, and executing highly complex real estate transactions. He is credited with acquiring over five million square feet of existing and to-be-developed holdings located on the east coast of the United States, and has participated in property transactions valued at over $2 billion. Frydman was the CEO and Chairman of First Capital Real Estate Trust, a public Real Estate Investment Trust, and continued on as Chief Investment officer after his retirement in September 2015.

Jacob Frydman – CEO & Chairman – United Realty Advisors, LP – LinkedIn: https://www.linkedin.com/in/jacobfrydman

Jacob Frydman – Huffington Post: http://www.huffingtonpost.com/author/jacob-frydman