3 Trends in Multi-Family Properties
Real Estate Market Space
The American dream has always been to own a home, right? Not necessarily. The trends seem to indicate a much larger portion of the buying/renting audience is leaning towards leasing options in multi-family and apartment communities. In this article, we will discuss the 3 trends in multi-family properties and ways you can stay ahead of the disruption!
- Provide Hospitality Amenities – With more and more Millennials opting for “lifestyle over homeownership,” the trends indicate that revenue will follow amenities. Think about the types of added services a typical hotel features – that’s the type of lifestyle and experience this generation expects. Property managers and building owners will want to incorporate these features when purchasing or renovating their properties, to stay competitive:
- Coffee / Beverage Bar
- Large atriums or rooms designed for community gatherings, networking and happy hours, farmer’s market, and pop-up shops.
- Wellness Centers – turn your old 20×20 gym into with larger rooms that can accommodate groups/classes.
- Concierge – for guidance on everything from local restaurants, travel arrangements, etc. Often outsourcing this service results in a win/win experience for the building owner and it’s tenants.
- Short-Term Leasing – Short-term leasing has always been frowned upon in the apartment/multi-family sector but companies like Airbnb have set the pace and many multi-family managers are following suit. Industry leaders say that short-term rentals can actually reduce carrying costs and increase occupancy. According to a recent study conducted by National MultiFamily Housing Council, short-term rentals are more important to younger renters with 49% of respondents interested in the opportunity to generate income through short-term rentals (like AirBnB).
- Cultural Shift – One of the biggest differentiators between apartments of yesterday and today is going to be the shift in culture. Building owners will need to hire, train, and retain staff that can provide a very personalized experience. In addition, data and AI will be a key factor in marketing properties and creating more personalized experiences. Properties that can create a greater sense of community will likely be highly valued over properties that don’t.
While this article specifically discusses multi-family properties and the needs of individual tenants, many of the same elements will cross-over to what companies are going to be looking for in commercial real estate spaces. If you own a multi-family or apartment community, commercial or office space, contact the real estate experts at Rachuba Real Estate Advisors today! We utilize our real estate expertise to help you maximize your real estate investments. We stay on top of the trends and create innovative ways for you to stay ahead of your competition!