Trends, ideas, and considered opinions from multifamily developers and market experts at Marcus & Millichap’s “Multifamily Forum,” held earlier this year in Chicago:
> Bigger units are selling like crazy. “The supply of condos out there is high end and much larger in size,” said Tom Weeks, Executive General Manager for Development, Lendlease. Ditto for rentals, said James Letchinger, President, JDL Development. “We’re seeing a new wave of renters with empty nesters wanting to move downtown,” he said. His firm experienced “unbelievable leaseup” for the larger units in one of its downtown buildings.
> The workforce shortage is killing business. “There just aren’t enough subs to get the work done,” said Letchinger. “There’s a huge workforce out there that’s just not being tapped. We need to get people into the unions, and we need the big contractors to help more minorities to become owners of their subtrade firms.”
> Keyless entry is going to be the new norm in multifamily. Alex Samoylovich, CEO, Cedar Street, said he’s working toward keyless entry via tenants’ cellphones across his firm’s portfolio of 18 properties. “Seventy-five percent of our tenants have given us permission for keyless entry into their units to deliver packages,” he said. Keyless technology can even be a revenue stream, he said. “We did $85,000 last year in lockouts.”
> Parking is going away in crowded urban markets. “Our ratio now is 0.4 spaces/unit, and zero parking in TODs,” said Sar Peruri, Principal, Oxford Capital Group, developer of the 429-luxury-unit Essex on the Park, Chicago. Derek Lopez, Managing Director, GEM Realty Capital, said his firm is looking into how to repurpose its parking decks down the road. But panelists agreed that resident parking is still essential in second-tier cities and the suburbs.
> Figuring out what Millennials want remains a puzzlement. “They’re now 35, not 25, and they’re forming families,” so their housing demands are changing, said Jim Driscoll, SVP of Development, Waypoint Residential. But John S. Sebree, Marcus & Millichap’s National Director of Multifamily, said, “Tenants in B and C apartments”—many of whom presumably are Millennials—“will usually start buying homes, but that’s just not happening.”
> The amenities war is “out of control,” said Alan George, Chief Investment Officer, Equity Residential. “We’re building small, usable conference rooms, with really good WiFi,” he said. “That’s really important.” But he questioned whether building, say, a full indoor basketball court is justifiable. Choosing the right mix of amenities for each project is critical.
> Rightsizing amenities remains an art form. Lindsey Senn, VP at Chicago developer Fifield, said that at the firm’s 390-unit Sinclair luxury tower, “We built the biggest fitness center we’ve ever done, and the residents said they wanted even more.”
> Teamwork is more important than ever. “With construction costs going up, the teamwork with the developer, the contractor, the architect, and the interior designer has to be even more intense,” said Jack Boarman, Partner, BKV Group. “We need to find new ways of manufacturing, like modular baths, and subtrade innovation that can save time and money.”
Related Stories
Multifamily Housing | Aug 23, 2020
Designing affordable housing on odd urban lots in LA
"Misfit parcels" could be the key to providing more affordable housing in Los Angeles, say two experienced multifamily housing designers.
Multifamily Housing | Aug 16, 2020
TCA Architects specifies Engineered Floors products for 304-unit apartment complex in Tracy, Calif.
TCA Architects specified Lewis Rigid Stone Polymer floating plank and Lewis Gold 100% Solution-Dyed high-performance fiber carpet for Harvest in Tracy, Calif.
Multifamily Housing | Aug 3, 2020
71-unit 100% affordable housing development breaks ground in Mountain View, Calif.
Van Meter Williams Pollack is designing the project.
Multifamily Housing | Aug 2, 2020
Stantec-designed 17 West mixed-use development completed in Miami Beach
Stantec-designed 17 West mixed-use development completed, with first Trader Joe's in Miami Beach.
Multifamily Housing | Jul 31, 2020
Railings manufacturer VistaPro launches its new website
VistaPro Architectural Railing Solutions launches new website.
Multifamily Housing | Jul 29, 2020
Multifamily construction proposal activity sees modest rebound in Q2 2020
Among the firms that work in the multifamily sector, 31% said that proposal activity increased in the second quarter, while 24% said it decreased.
Multifamily Housing | Jul 29, 2020
San Francisco’s Millennium Tower fix approved, moving forward
Simpson Gumpertz & Heger will be the engineer-of-record for the fix.
Multifamily Housing | Jul 27, 2020
Putting 'home' at the heart of affordable housing
Home is a powerful thing. It’s the place that forms you, a guiding set of relationships, memories, and experiences that, for better or worse, make you who you are.
Multifamily Housing | Jul 20, 2020
Abandoned 15-story high-rise becomes mixed-use luxury apartment building
Kimmich Smith Architecture designed the project.