Industry News | Wk of January 7
HOT & RELEVANT TOPICS
2019 Apartment Outlook
As apartment operators target savvier residents and more elusive rent growth, concepts such as artificial intelligence, placemaking and operational innovations figure to have prominent roles this year. AI is already making strides in the industry, as several Pinnacle prospects have expressed disappointment when learning Elise isn’t in the office when they visit the property. Alas, Elise is a chatbot. Placemaking, a multifaceted approach to the planning, design and management of public spaces, is also experiencing an uptick as communities aim to differentiate themselves to increasingly shrewd renters. Read Chris Wood’s story in Multifamily Executive.
How Multifamily Housing Can Solve Urban Loneliness and Boost Value
Without social interaction, an apartment is only a place to exist for part of the day. With meaningful experiences and lasting friendships, it becomes a home. Onsite teams can help foster this environment and help prevent loneliness through the ways they engage with their residents. That includes connecting on a first-name basis, keeping channels of communication open (even with short-form surveys), collaborating with local business partners and businesses to regularly visit the community and by being present at the community events that they coordinate. Read Benjamin Pleat’s article in Forbes.
Video Game Craze Helps
Student Properties Score Points
The gaming craze might not help college students make the Dean’s list, but it might make the difference when they are deciding where to live. As such, some student communities are catering to the concept through purpose-built student housing marketing. Picture multiple TV consoles, comfortable gaming furniture and even a couple of retro arcade-style gaming consoles. A Campus Advantage community in Baton Rouge recently held two Fortnite tournaments, which generated hefty participation and social media activity. Read Paul R. Bergeron III’s article in UNITS Magazine.
IN THE NEWS
How a Prolonged Government
Shutdown Could Impact CRE
The eighth government shutdown ever to surpass 10 days has begun to impact commercial real estate, from government contracts, retail spending and multifamily loans. With regard to the latter, HUD is short-staffed during the shutdown, limiting the processing of loans for housing projects. Only 343 of HUD’s nearly 7,500 employees are expected to work fulltime during the stoppage. The FHA, meanwhile, will continue to endorse new single-family loans but will take no new commitments for its multifamily program. The effects, naturally, could be more pronounced if the shutdown doesn’t end soon. Read Joe Banister’s article in Bisnow Washington.
Top 10 Commercial Real Estate Predictions for 2019
GlobeSt.com’s commercial real estate predictions for 2019 include the ideas that industrial markets will continue to sizzle and that interest rates will continue to rise. More specific to the multifamily sector, the piece hypothesizes that apartment rents will continue to moderate. Noting that some rents have increased by as much as 50 percent in hot markets over the past few years, the article anticipates a more modest 1.5 to 2 percent growth this year. With the influx of new supply beginning to soften markets, Apartmentlist.com reported only a 1.2 year-over-year increase in rents in Q3 of 2018. Read Joseph J. Ori’s article in GlobeSt.com.
Here’s Where Americans Moved to in 2018
Washington, D.C. remained the most moved-to major metro in 2018 according to Updater relocation data, while Dallas remained No. 2. Making large leaps in the Top 15 were Seattle, which jumped from No. 12 in 2017 to No. 6, and Phoenix (from No. 15 to No. 9). Portland, Minneapolis and Tampa vaulted into the Top 15 after landing outside the fray in 2017. Philadelphia, Orlando and Boston dropped out of the Top 15 in 2018. Read Updater’s full list and breakdown.
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