Industry News | Wk of September 30
HOT & RELEVANT TOPICS
Demand For Corporate Housing Continues to Rise
Spurred by seasonal travelers, empty nesters, employees on out-of-town business and younger generations trying to put off buying that first home, corporate housing continues to become more popular. Corporate housing—fully furnished and fully serviced homes available for short-term rental—spiked 12 percent from 2014 to 2018, compared to a 3 percent rise in hotels over the same period. Executed properly, corporate housing can drive value for all those involved. That includes apartment owners, who are guaranteed occupancy in otherwise vacant units. Read Jamal Lee’s article in Multifamily Executive.
How to Survive Hurricane Season
Catastrophic natural-disaster events are becoming more prevalent, from wildfires and floods to hurricanes and other tropical storms. This is putting the onus on apartment operators to be ultra-prepared for such traumatic events. To assist, the Federal Emergency Management Agency has provided businesses with a hurricane tool kit. Businesses should also ensure that their insurance is up to date and that they are familiar with the coverage. Many apartment operators have also procured flood insurance from private companies and are encouraged to document damages as quickly as possible. Read Kevin Donnelly’s article in Multi-Housing News.
Say No to Passive-Data Aggression, It’s Time to Be Data Aggressive
While apartment operators pursue data with fervor, they often end up with too much and struggle to quantify it. The utilization of advanced software options and business intelligence can assist in molding that data into useful information as it relates to pricing, lead conversions, maintenance performance and several other community-related concepts. A new-school example of data crunching that delivers results is multi-touch attribution, which weighs and assigns credit to every touch point in the renter journey. Read Marlena DeFalco’s article in UNITS Magazine.
IN THE NEWS
Foreign Investors Ramp Up Multifamily Acquisitions
Global capital continues to be allocated to the U.S. apartment market, as foreign investors have spent $16.1 billion in acquisitions over the past 12 months. While cross-border investors might be slowing pursuits of assets in other sectors, they show no signs of doing so with apartments, lured by the ongoing strong demand and low vacancy rates. Apartment buildings are viewed as less volatile than single-tenant office buildings, because apartment buildings rely on the incomes of dozens to hundreds of different residents. This helps investors better identify a year-to-year yield. Read Bendix Anderson’s article in National Real Estate Investor.
Salt Lake City Leads the Nation in Flex-Office Growth
The Silicon Slope is thriving. According to a new report from CBRE, the Salt Lake City market added 350,000 square feet of flexible office space in Q2, representing a total market increase of 89.9 percent. For tech startups hesitant to commit to a five-to-15 year office transaction, the idea of flexible office space is commanding a lot of attention. That’s according to Lloyd Allen, managing director at CBRE, who expects Salt Lake’s tech market to eventually stabilize rather than grow at its current rapid pace. Seattle and Sacramento were next in line, with 65 percent flex-office growth in Q2. Read Kelsi Maree Borland’s article in GlobeSt.com.
The ‘Incredible’ Flow of Capital Into Multifamily Expected to Increase in 2020
The multifamily sector is flourishing to such an extent that it has become a top investor target during the current cycle. Experts seem to agree that the trend is bound to continue. Top capital market executives, who spoke at a recent Bisnow multifamily conference, believe that the rise of institutional investors, banks aggressively competing to provide loans for multifamily projects and new spending budgets for government-sponsored enterprises Fannie Mae and Freddie Mac will allow the sector to remain healthy. Read Jon Banister’s article in Bisnow Washington.