## Ruden Management Co-CEO Talks Family Business, New York City Real Estate, and the Future of PropTech
**Key Takeaways**
– Michael Ruden, co-CEO of Ruden Management, a fourth-generation New York City real estate dynasty, discusses the company’s history, evolution, and plans for the future.
– Ruden emphasizes the importance of family values, including “enlightened self-interest”, in maintaining a successful family business.
– The company has increasingly institutionalized its operations over the past two decades, bringing in talent from institutions like Blackstone to help modernize and improve efficiency.
– In a time of rapid technological development, Ruden sees tremendous potential in proptech but emphasizes the importance of integrating new solutions with existing systems.
– Ruden sees a bright future for New York City real estate, despite the pandemic, and believes that the city is a hotbed for new venture capital activity.
**Ruden’s History with New York City Real Estate**
Michael Ruden joined his family’s real estate company, Ruden Management, after graduating from college and now serves as co-CEO with his sister. The company has been a fixture in New York City for nearly a century, developing, owning, and managing commercial and residential properties, including some of the city’s most iconic buildings. Ruden’s great uncle, Jack Ruden, was quoted as saying that he hated the term “landlord,” a sentiment shared by Michael. The Rudens believe that they have a more permanent and symbiotic relationship with their tenants, and see themselves as “builder[s], owner[s], and manager[s],” rather than simply landlords.
**The Importance of Family Values**
Ruden attributes the family business’s longevity to its core values. “Harmony within the family is enlightened self-interest,” says Ruden. He explains that this means the family has always prioritized the greater good over individual personal gain. Although disagreements are inevitable, he asserts that the Ruden family works hard to understand each other’s viewpoints and perspectives. The goal, according to Ruden, is to ensure that “what’s good for one is generally good for the whole.”
**The Evolution of Ruden Management**
Over the past two decades, Ruden Management has increasingly institutionalized its operations. While the company started out as a family-run business with unique, sometimes less formal, processes, this approach was not deemed sustainable as the business grew and expanded. The company realized it needed to be more attractive to institutional investors. To accomplish this, they brought in experienced professionals from large institutions like Blackstone. In the past decade in particular, Ruden says that there has been a “highly concentrated” effort to implement new best practices, including modernizing reporting and communication systems.
**Investing in PropTech**
Ruden sees tremendous potential in proptech, but the rapid development of the field presents unique challenges for a long-standing real estate company like his. Ruden and his family have made a number of proptech investments, including VTS and Latch, and he emphasizes the importance of an investment strategy based on solutions that are relevant to the company’s core business. Ruden believes that implementing tech solutions should not be rushed, emphasizing the need for a well-considered approach to integration with existing systems.
**The Future of New York City Real Estate**
Ruden is optimistic about the future of New York City real estate, despite the challenges posed by the pandemic. He notes that many venture capital firms have moved their offices to the city, attracted by the city’s vibrant startup ecosystem. Although some companies may have relocated, Ruden believes that New York City remains a desirable destination for people and businesses.
**Lessons Learned From the Pandemic**
The pandemic tested the Ruden family’s long-standing commitment to the city. Ruden notes that during the early days of the pandemic, there was a “mass exodus” of people and businesses from New York City. However, he asserts that “the obituary for New York has been written many times and yet here we are.” Ruden believes the city is resilient and will inevitably recover, and he points to the increasing number of people and businesses moving to the city as evidence of its continued vitality.
**Local Law 97 and the Future of Sustainability in New York City Real Estate**
Ruden is acutely aware of the impact of Local Law 97, which mandates new energy efficiency standards for buildings in New York City. The law requires building owners to make significant investments to reduce greenhouse gas emissions, and fines can be levied for non-compliance. Ruden sees the law as a driver of innovation and efficiency but believes that success will depend on the scale of implementation, and the willingness of tenants to participate in reducing their energy consumption. While some building owners may prioritize paying fines over making expensive improvements, others will see the law as an opportunity to innovate and achieve lasting positive results. Ruden’s company has been at the forefront of sustainability for decades, and he anticipates that the company will play an even larger role in this space as the demand for energy-efficient buildings increases.
**The Role of AI in the Future of Real Estate**
Ruden believes that AI has the potential to revolutionize the real estate industry in a number of ways. He cites the tremendous amount of data available to the industry, including physical documents, which can be analyzed and synthesized using AI. Ruden says that the real estate industry is “very early” in its adoption of AI and expects to see rapid development of AI-powered solutions in the coming years. He believes that this technology will help drive further efficiency and improve the customer experience.
**The Future of Ruden Management**
Ruden is optimistic about the future of Ruden Management. The company is well-positioned to navigate the evolving real estate landscape through its commitment to its core values, its focus on innovation, and its dedication to the long-term success of New York City.
**Conclusion**
Michael Ruden’s insights into the history and future of his family’s real estate business provide a compelling window into the changing dynamics of the New York City real estate market and the industry as a whole. Ruden emphasizes the importance of family values and an “enlightened self-interest” that has allowed his company to remain a key player in New York City for nearly a century. While the company has adapted to meet the demands of a constantly evolving marketplace, its commitment to its core values and to the betterment of the city remains a constant.