2018 Multifamily Trends Preview

The accelerated growth of the multifamily market over the last several years has some experts in the industry wondering how long it can last. However, demand for new apartments is projected to continue into the next decade, according to the National Multifamily Housing Council. Research indicates a need for 328,000 new units every year through 2030, for a total of nearly 4.6 million, but the industry averaged only 225,000 completions annually between 2011 and 2016. As new buildings are scheduled to break ground and others prepare to open their doors in 2018, Midwest multifamily experts say the following trends will drive development, leasing and property management in the year ahead: play and pamper exercise your options home meets office tech-savvy seniors art as amenity beam me up to my new home storage wars affordable housing developers get creative with service As amenities continue to outline and differentiate the newest rental communities, developers will try to be more discerning with their choices in 2018, giving careful consideration to how a building’s amenity package as a whole reflects residents’ lifestyles. The Spoke in Chicago For example, at Spoke, a new transit-oriented rental development in Chicago’s River West neighborhood, amenities were designed to create mini-experiences within the property. “Our renters are highly active, so a day at Spoke might mean hosting a dinner for 20 in our family room, letting your inner rock star out on the stage in our performance lounge or battling competitors from around the world in our gaming lounge,” said Rob Bond, president of Bond Cos., co-developer of Spoke, in a prepared statement. In Chicago’s River North neighborhood, SixForty North Wells includes a wall-mounted Scrabble board, outdoor putting green and shuffleboard table. “Amenities can make or break whether a resident chooses a building,” said The Habitat Co. Executive Vice President of Property Management Sheila Byrne. Some buildings are turning up the heat with specialized spa treatments and facilities. At The Residences of Wilmette, a 75-unit, five-story rental development that was recently completed, the building’s spa features chromotherapy technology. Another way properties are looking to gain edge in 2018 is by giving more weight to their fitness center. High-end gyms have been a mainstay of luxury apartment properties for several years, but some are differentiating themselves through specific fitness brands. And while spinning rooms have become common, rental buildings along Chicago’s bike-friendly Milwaukee Avenue corridor, like Spoke, are also featuring Peloton bikes, a premier brand of stationary bikes that offer live and on-demand spinning classes delivered through a bike-mounted screen. Riders can also choose a biking experience along with a group of friends. Even senior living communities are flexing their muscles by providing a safer, more encouraging environment to stay fit. Designed specifically for seniors, the newest machines feature a key card that, once inserted, automatically adjusts resistance to a resident’s abilities. Access to technology: critical High-speed internet access was recently ranked as one of the top five in-unit amenities, according to a survey by the National Multifamily Housing Council and Kingsley Associates. Similarly, dependable mobile connectivity was a must-have in common areas (92 percent)—higher than both swimming pools (82 percent) and fitness centers (82 percent). Waterton, whose portfolio includes 14,000 apartments across the U.S., sees a growing demand in 2018 for living spaces that can double as individual or collaborative workspaces. At The Citizen at Shirlington Village, a 404-unit luxury community in Arlington, Va., Waterton plans to renovate the clubhouse to include individual work pods. as well as communal areas with spaces designed for people to meet, socialize and collaborate. “We’re redesigning and sometimes repurposing underutilized common areas so they can better accommodate work-from-home professionals and entrepreneurs,” said Lela Cirjakovic, executive vice president of operations at Waterton. Tech-savvy seniors The development team at Draper and Kramer Inc. is also retrofitting properties with tech features. As part of the firm’s recent redevelopment of Wheaton Center, a 758-unit community in Wheaton, Ill., a fiber optic backbone was installed to provide ultra-high-speed Wi-Fi throughout the common areas of the entire six-building community. Technology will also play a bigger role in senior housing as well, influencing not just the daily activities offered to residents, but also the level of care provided. Technology also offers peace of mind for residents and their loved ones by implementing wearable technologies that can pinpoint a resident’s location and allow them to call for assistance simply by pressing a button. In the development of senior housing, technology considerations go far beyond typical high-speed Wi-Fi access. CA Senior Living builds communities to include life-saving and life-enhancing technology. “Our residents will be able to enjoy the benefits of augmented reality with activities like ‘virtual globetrotting,’ which allows them to explore exotic destinations from the comfort of home,” said Matt Booma, vice president of development at CA Senior Living. Additionally, art is being incorporated more and more into luxury residential buildings, but developers are differentiating their communities by going big with big-name artists or seeking out local talent whose work has not yet been widely discovered. Randy Fifield, chairwoman of Fifield Realty Corp., selected more than 90 pieces of original art that adorn The Sinclair, the company’s new 35-story, 390-unit apartment tower in Chicago. “Walking into the lobby and seeing an Alexander Calder lithograph says something about the quality of our building and the level of amenities and service renters can expect. It’s become a major differentiator,” said Fifield. Art is also being featured prominently in new student housing developments. Virtual reality, a game-changer 2018 should be VR’s breakout year, as more adopters of the technology discover its benefits in boosting pre-leasing and pre-construction sales. According to Aaron Galvin, CEO and co-founder of Luxury Living Chicago, virtual tours can help seal the deal when leasing under-construction projects. The company successfully used virtual reality to pre-lease units at 8 East Huron, a boutique rental property in the heart of downtown Chicago. Virtual Reality A persistent challenge of multifamily living, on-site and off-site storage options will become a more competitive differentiator among developers and property managers in the year ahead, especially for projects targeting empty nesters who have a lifetime of items to store. Even with ample walk-in closets, storing larger seasonal items like skis, bikes and golf clubs can be a challenge in some buildings. Kass Management Services has partnered with Blue Crates, an on-demand storage service that delivers a resident’s belongings to their front door at the time and day of their choosing. “Not only is it a fast way to free up valuable closet space, but it’s also affordable, with most plans less than $10 a month,” said Mark Durakovic, principal of Kass Management. One thing that won’t change is how developers and managers of affordable communities are finding creative ways to address residents’ social, financial and medical needs, as the national supply of affordable residences remains critically low. The Habitat Co., which manages 10,000 affordable housing units, recently launched Generations Housing Initiative. Depending on the community, GHI services can range from health and wellness programs to coordinated access to supportive services for individuals and families. Images courtesy of Spoke/Bond Cos., Pathway to Living & Luxury Living Chicago