Industry News | Wk of March 4
HOT & RELEVANT TOPICS
Multifamily Construction’s 7 Deadly Sins
As apartment operators clamor to unveil their new developments in time to beat the competition and capture a hot market, time is a precious commodity. Yet many timelines are significantly delayed, and the reason usually involves deviations from approved architectural plans, approved manufacturer-recommended materials or standard-field practices. Don Neff, CEO of LJP Construction Practices, outlines seven common sins to be avoided during the development process, from improperly constructed structural components to defective concrete foundations. Read Neff’s article in Multifamily Executive.
Your Apartment’s Name Matters More Than You Might Think
Paradise View sounds like a more attractive apartment than Highway Courtyards, but branding is a bit more complicated than that. As such, Israel-based startup Skyline AI is exploring just how much an apartment’s name can influence its value. The firm has built a model to learn the correlation, while being cautious to point out correlation doesn’t equal causation (the name Lakeside symbolizes higher value but doesn’t mean rebranding to Lakeside will create a better ROI). For now, the firm’s best advice is to avoid rebranding to names that correlate to lower value, such as “residences.” Read Erika Morphy’s article in GlobeSt.com.
Multifamily Offers Unique Opportunities for Career Growth
Perhaps thought of as a one-dimensional field to those outside the industry, the multifamily sector offers career paths in maintenance, IT, marketing, the C-Suite, operations and beyond. That’s in addition to the traditional roles on the community management side. Three industry professionals – a long-timer, a new associate and one who returned to multifamily after leaving the industry – share their varying perspectives and take a peek at what multifamily career opportunities could be next. Read the entire article in Multifamily Executive.
3 Digital Marketing Trends for Apartment Marketers in 2019
As technology continues to evolve at breakneck pace, marketing efforts have no choice but to keep up or get left behind. Three multifamily trends appear set to take hold this year and should be included in any marketing campaign, according to LTM’s Samantha Chalmers. Those include chatbots, targeted content and video marketing. Chatbots will play an increasing role in the lead nurturing process, offering real time information at virtually any time while easing the burden of onsite associates. Read Chalmers’ blog.
IN THE NEWS
Oregon Passes First-in-Nation
Statewide Rent Control
Wherever rent control has existed in the past, it has been a local matter. But now the Oregon House of Representatives has approved a statewide rent control bill that was previously approved by the state’s senate. The measure, which includes new eviction protection for apartment residents, will now move on to Governor Kate Brown, who is expected to sign it. The bill also caps annual rent increases at seven percent and requires apartment operators to provide a reason for eviction after their first year in an apartment. Read Dees Stribling’s article in Bisnow.
CRE’s Headwinds and Tailwinds For 2019
As economic and demographic trends continue to shape investment and finance in commercial real estate’s four primary asset classes, TD Bank’s Gregg Gerken broke down each. With regard to multifamily, Gerken notes that opportunity still exists for investors due to a combination of job growth, wage growth and a new generation of households. More prominent is the growing need for affordable housing, as an estimated 12 million households now pay more than 50 percent of their annual income for housing. Read Gerken’s ViewPoint in Multi-Housing News.
Ranking the Top Multifamily Markets
The annual National Multifamily Index compiled by Marcus & Millichap takes into account factors such as employment, construction, vacancy rates, rents and investment. Judged on those merits, Minneapolis-St. Paul qualifies as the current top market. The Twin Cities experienced a 1.5 percent employment growth and 5.7 percent rent growth over the previous year. San Diego checked in at No. 2 and New York at No. 3, making a four-city jump from last year. Of note, last year’s top market of Seattle-Tacoma fell to No. 5. See the entire list in National Real Estate Investor.