Industry News | Wk of August 5
HOT & RELEVANT TOPICS
Scooter-Sharing Revs Up at Chicago Apartments
Just as the industry was finding ways to accommodate the ride-share revolution, a new wrinkle has been added: scooter-sharing. Ten scooter-sharing companies are participating in a four-month pilot program at Chicago-area apartments, and the results have been overwhelmingly positive. One community, The Field’s Lofts, ran out of scooters by 8 a.m. on the initial day of the program and had to order more. With 46 percent of urban trips three miles or less, micromobility options such as scooters are more convenient than ride-share, taxis or public transportation. Read Paul Bergeron’s article in UNITS Magazine.
How Starbucks Helped One Company Lease Apartments
Would you like a two-bedroom to go with that latte? Wood Partners has experienced remarkable success by marketing some of its apartment communities at Starbucks’ in-store locations and drive-thru lanes. The company engages in pay-it-forward events with Starbucks and other local coffee shops, in which Wood Partners purchases coffee drinks for prospects and distributes information about their homes. The idea is to create feel-good experiences while helping get the word out about new communities. Read Paul Bergeron’s article on the National Apartment Association website.
It’s the Little Things
Multifamily companies, suppliers and apartment operators alike, oftentimes aim to make a big splash with their outreach efforts. However, those that focus on some of the meat-and-potatoes aspects of their PR campaigns often experience the most satisfying results, according to Stephen Ursery. By dedicating time to blogs, case studies, email marketing campaigns and conference speaking opportunities, companies will often make a bigger impact in the industry than those aiming to make a big media splash. Read Ursery’s blog.
IN THE NEWS
Millennial Money Goes Furthest
in These Cities
San Francisco might be an ideal millennial hotbed – except when it comes to spending power. A recent JLL study that analyzed household incomes of working millennials, and adjusted for the cost of living in the area they live, determined that St. Louis provides the best spending power for the demographic at the average rate of $11,200 above average. Austin, Raleigh-Durham, Minneapolis and Richmond rounded out the top five. San Francisco, meanwhile represented the worst spending power at minus-$13,700. Read Greg Isaacson’s article in Multi-Housing News.
How Upcoming Legislation Might Impact the Industry
While the outlook for the apartment sector looks bright well into 2020, one legislative initiative has the potential to make an impact. The EB-5 Immigrant Investment Program, which allows conditional lawful permanent U.S. residency to foreign investors who spend $1 million on U.S. commercial real estate and preserve at least 10 American jobs, is seeing its limits raised. The minimum investment will be raised from $1 million to $1.8 million, and the minimum investment for targeted employment will increase from $500,000 to $900,000. This could delay or completely derail some projects. Read Adam Hooper’s Q&A on GlobeSt.com.
Apartment Buildings in the U.S. Keep Getting Bigger
In the 1980s, 25 percent of apartment buildings featured 19 homes or less. In 2018, that number fell to a record-low 4 percent. Multifamily buildings are getting bigger nationwide, and the trend is due to rising construction costs (developers are not going to dedicate expensive resources to a smaller building), increased regulatory burdens and the increasing role of institutional investors. Last year in the U.S., developers completed 211,000 new housing units in buildings of 50 or more, which represents a new record. Read Justin Fox’s column on Bloomberg.