Weekend Interview: BEB Capital CEO Lee Brodsky

This series gets into the heads of the decision-makers of CRE, the people shaping the industry by setting investment strategy, workplace design, diversity initiatives and more.

Lee Brodsky is CEO of BEB Capital, a development and investment firm with industrial, office and multifamily properties across the Northeast.

BEB recently entered a JV with Rockpoint to invest up to $1B in industrial and has already acquired 660K SF. Affiliate BEB Lending, which launched in 2020, has loaned $100M to date and is targeting an additional $150M by the end of 2022.

Brodsky, who has has led BEB Capital since its founding in 2013, said commercial real estate needs to strive for more transparency around data, which can lead to aggregation of information that would benefit the industry.

He previously worked as a corporate real estate adviser at Newmark, and he said he hasn't quite given up on his childhood dream of working for World Wrestling Entertainment one day.

The following has been lightly edited for clarity.

Bisnow: Baron Rothschild once said the “time to buy is when there’s blood in the streets.” Where is the blood today?

Brodsky: I don’t know if I would say there’s blood in the streets, but there’s definitely opportunity. Especially in the office market — everyone thinks the five-day workweek is dead, but I don’t think it will stay depressed forever. There’s opportunity in assets where their debt might be coming due, and the debt service ratio creates a situation where borrowers are required to pay down their existing debt. We’re seeing a tremendous flight to quality — which happens in each market downturn — so people are getting more value for their dollar and in turn can create a better office culture for their firm. If you’re a believer in the office market, and have staying power, you’ll find opportunity during this time.  

Bisnow: What is your most controversial CRE opinion and why are you right about it? 

Brodsky: That the office isn’t dead. I think we’ll look back at this time in five to 10 years and laugh at ourselves for thinking that people aren’t going to want to return to the office. For most of us, working from home is hard. If you have a family or kids at home or aren’t equipped with an adequate home office, the office gives you separation and a place to work, which I think people will come to appreciate. 

Bisnow: If you weren’t in real estate, what path would your career have taken?

Brodsky: As a kid, I always wanted to be involved with World Wrestling Entertainment (WWE). Though physically, I’m not sure I’m cut out to be a wrestler, I’ve always been fascinated by it and would love to either do commentary or maybe work in the creative department. That, or own a private golf club. 

Bisnow: If you could make one change to the industry, what would it be?

Brodsky: We need more transparency in the industry. A lot of the data that the industry utilizes is broker-driven, so I’d like to see the industry overall do better in terms of aggregating and dispersing macro data. 

Bisnow: What is one thing you would do differently from early in your career?

Brodsky: Looking back, I wish I spent more time studying capital markets earlier on. My background was focused on the leasing market, but I wish I spent more time earlier on learning about how buildings are purchased, owned and operated from the start.

Bisnow: As a leader, how do you decide who is worth mentoring and who is simply not a good fit?

Brodsky: I gravitate toward people that want to be mentored. I want to mentor people who respect my opinions and respect my judgement in business, even if they don’t agree with them completely. I want to work with people who are willing to respectfully disagree and propose ideas as opposed to arguing and pushing back without providing solutions. You can disagree on approaches to business but go about it in a way that shows mutual respect. 

Bisnow: What are your thoughts on the metaverse? Does it have any relevance for CRE?

Brodsky: I have a hard time wrapping my head around the metaverse. There are instances where I think it makes complete sense, such as VR where you’re able to do a virtual walkthrough of a building. Real estate is such a brick-and-mortar industry that I’m not sure that I can picture a future where real estate executives are wearing headsets and virtually attending meetings or events at home in their pajamas, but I can see the value in virtual touring and renderings capabilities. 

Bisnow: What do you see as the lasting impacts of the pandemic on CRE? 

Brodsky: Covid-19 has allowed companies to broaden their talent pools. New York firms previously were limited to candidates in New Jersey, New York or Connecticut, but now, they can recruit talent from all over the country or even the globe. While this might contradict my earlier statement about the office not being dead, the reality is that people now have the opportunity to work from home, and they’re going to utilize it. Hybrid employees will still want that in-person interaction, so companies will still need office space to accommodate for that.

Bisnow: As you know, there is a massive conversation underway regarding advancing more people of color and women into the C-suite. What are you doing to address those voices and that movement within your own organization?

Brodsky: BEB is a fast-growing organization — we’ve increased our headcount tremendously over the last few years, and I’m proud to say that more than half of our current staff makes up women and/or people of color. As a small company, we can’t single-handedly change the industry, but we’re always looking for ways to increase diversity within our team and empower the voices of others.

Bisnow: So, this is the weekend interview. What’s your typical weekend routine?

Brodsky: I have four kids under the age of 10 and a half, so my weekends are jam-packed with sports and activities with them, but I do try and squeeze in a round of golf when I can and go out with friends at night.