ApartmentIQ’s Post

One of the persistent challenges in the multifamily industry is managing vacancy rates. High vacancy rates can significantly impact revenue and indicate issues with pricing, marketing, or tenant satisfaction. Here’s how to tackle this challenge head-on: 1. Utilize a Revenue Management platform and our advisors to optimize your pricing and curb lease-expiration vulnerability, stabilizing your occupancy. 2. Leverage market analysis tools to ensure your pricing aligns with local demand and competition. 3 . Boost your online presence to attract potential tenants. 4. Implement programs that increase tenant satisfaction, such as responsive maintenance teams, community events, and resident surveys. By focusing on these strategies, we can lower vacancy rates, enhance tenant satisfaction, and ultimately drive revenue growth. Ready to make a difference? Let’s start today! #MultifamilyManagement #VacancySolutions #RevenueGrowth #TakeAction

Our team analyzed 300,000+ properties and uncovered something interesting. Here's what we found out: When compared with industrial, retail, and office properties, multifamily has had the smallest increase in vacancy rates as the respective properties aged. Here's how we crunched the data: -> We looked at 300,000+ properties. -> We measured vacancy rates for properties built before 1991. -> We measured vacancy rates for properties built from 1991-2010 -> We analyzed the period between 2014-2021. You'll see the same insight in the chart below, but our 1-sentence takeaway is this: Multifamily is the least likely of the four sectors to become functionally obsolete. I know this sort of insight isn't electrifying to everyone, but as someone who obsesses over real estate, it's pretty cool. And what's even better is the fact that I have both a team that wants to dive into this stuff and the internal technology to allow us to do so. If you're still reading this, I assume you're like me and you find this sort of thing interesting. What's your takeaway? Are you surprised? Is this what you expected? Let me know.

RealPage Market Analytics reported a month-over-month increase in national apartment occupancy to 94.2% in April 2024, the first uptick since February 2022. This positive trend was observed across all regions, indicating strengthening demand following a record first-quarter absorption of over 100,000 units.  #Multifamily #RealEstateTrends

Whenever somebody asks me, "What type of property do we focus on?" I always reply, "we're a customer-service focused company, not a property-focused company". Here is what I mean by that 👇 The focus on "Customer Service" is our topmost value. It applies to everything we do instead of being property-focused. In fact, we have expertise in all different types of properties. We've managed everything: - single-family homes - condominium developments - low-income housing projects - class A office & retail buildings So, we have decades of experience & technical expertise with multiple asset classes. But what sets us apart is our customer service & customer focus. How we interact with our clients, tenants, vendors, and even employees is the most essential aspect of what we do. Don't just take my words for it. Check our Google reviews & you'll see "Customer Service" is reflected in how our clients and tenants talk about us.

I had a detailed look at different real estate reports and gathered together some ideas on how to get better vacancy rate than market average. Here are my first ideas. Maybe they will help you to lower your rental property vacancy rate as well. 1. Is this property effectively managed?   How big is the team and how are the roles divided? Maybe it´s time to hire new people to get better results? Great management can significantly enhance the financial performance of a property. 2. How often are the rental rates adjusted?  Be familiar with market trends and adjust rental rates accordingly. Pricing a property too high may lead to vacancies, while pricing it too low can result in lost revenue. When the market is rising, adjust the rates as frequently as possible. 3. Are tenants satisfied with the current property manager?  Have you got feedback from the tenants about the property manager? If not, then take it as a reminder to do a survey. A good property manager is always available and ready to solve all kinds of problems that tenants have. A well-managed property attracts and retains high-quality tenants, who are more likely to renew their leases. 4. When was the last time operating contracts were negotiated?  Control your operating expenses at least once a year without compromising on service quality. Services prices and quality changes all the time – get yourself the best deal! 5. Have maintenance and timely repairs taken place regularly?  These works not only preserve the property's value but also enhance its appeal to tenants. Show that you care, and tenants will start acting the same way.    There will definitely be a sequel to this post, but if you have anything to add, feel free to post them in the comments. 

As a writer for Forbes.com, I am bringing the world transparency around commercial real estate office markets, like never has been done before. In our industry, landlords make the rules and their full-service listing brokers and agents work to enforce them. One of those is the historical manipulations around measuring how much space is available for lease in the U.S. by using “vacancy rates” versus “availability rates.” My analysis shines a bright light on the distortion created by the commercial real estate industry in how brokerage firms report office space for lease and sublease, and how commercial real estate tenants can be easily deceived.   #OfficeMarket #VacancyRates #TenantRepresentation

Insights on Commercial Real Estate Cap Rates Excited to share the latest findings from CBRE's comprehensive study on commercial property capitalization rates (cap rates) spanning from Q1 2001 to Q4 2022. This detailed analysis provides valuable insights into the valuation and return metrics for major property types, including office, retail, multifamily, industrial, and hotel properties. Key Takeaways: Low Volatility: Cap rates have remained within a narrow range of under 500 basis points over the past two decades, exhibiting very low volatility. High Correlation: Cap rates across different property types are highly correlated, reflecting both macroeconomic changes and property-specific fundamentals. Sector-Specific Trends: Notable deviations include hotel cap rates, which began increasing in the early 2010s, and recent rises in retail and office cap rates due to e-commerce and remote working trends. Local Market Variations: While national data is informative, local market conditions can significantly impact cap rates, necessitating localized investment strategies. Descriptive Statistics: Average Cap Rate: 6.29% Standard Deviation: 1.12% Range: 4.88% (min) to 8.87% (max) This study underscores the importance of understanding both long-term trends and local market dynamics in commercial real estate investment. For a deeper dive into the data and analysis, feel free to reach out! #RealEstate #CommercialRealEstate #Investment #CapRates #CBRE #MarketAnalysis #PropertyInvestment Cap Rate Trends https://lnkd.in/dp3NuqzE

Does this softness in #Office net absorption affect demand for #Multifamily? Seems rents are shifting from office space to #WFH and #coworking across the nation and that grows the rents residential renters and homebuyers can pay through higher wages? Do anyone have any research or #data on this subject? Ref: CoStar News March 29, 2024 | 2:28 P.M. CRE Property Prices, Transaction Volume Slide as Demand for Space Plummets and Tenants Give Back Millions of Square Feet Across All Property Types, CoStar Data Shows Commercial property tenants are expected to have leased less commercial space than they vacated this quarter. (James Leynse/CoStar) By Mark Heschmeyer U.S. commercial property prices declined in February as tenant demand across all property types approaches lows last seen during the Great Recession, with millions of square feet of space given up around the country. CoStar Group’s value-weighted U.S. composite index, reflecting big property sales common in major cities, fell for the sixth straight month, sinking 1.4% from January. Prices are down 10.6% over the past 12 months. Meanwhile, the equal-weighted U.S. composite index, showing the more numerous, lower-priced property deals typical in small markets, dropped 1.3%. This reversed a 1.9% monthly gain. The findings, gathered from the most recent available pricing data, are part of CoStar’s Commercial Repeat-Sale Indices that track when a previously sold property trades hands again in a process called a repeat sale. The CCRSI is based on 803 repeat-sale pairs in February and 302,949 repeat sales since 1996. Pricing is affected by higher Treasury rates that have largely remained above 4% since the beginning of the year, according to Chad Littell, national director of U.S. capital markets analytics for CoStar and author of the CCRSI report. The higher cost of capital is also dragging down deal volume. The number of transactions in February marked the second-lowest total since May 2020, two months after the declaration of the pandemic. Repeat sales totaling $5.2 billion were traded in February, a 13.3% drop compared to the prior month. The sluggish sales come as demand for space has plummeted, Littell noted. Tenants are expected to lease less commercial space than they vacated for negative net absorption for the 12 months ended in March, Littell said. “While the negative absorption was uneven during the pandemic," Littell said, "the current environment more closely resembles the Great Recession’s comparable distribution of occupancy losses,” referring to the downturn that began in December 2007 and ended in June 2009. Negative net absorption across all commercial property types totaled 59 million square feet. While demand is slowing, so too is the completion of newly constructed office, retail and industrial space. Completions are projected to reach 843.9 million square feet in the 12 months ended in March, down 1.2% from the year through March 2023.

Not that it needs to be said but staffing is the lynchpin of multifamily operations. Your budgets and projections mean nothing without the right people. Your exit is in jeopardy should you have subpar maintenance. Your DSC and cash flow won't exist without a machine in the office. Everyone knows that. The part that most overlook is how it affects your residents. Having a friendly, engaging staff can make retention and resident happiness soar. I've lived in several complexes and while all were nice, one was even brand new and I was a first gen lease, the most enjoyable time I have had was the community that any visit to the leasing office would turn into an hour of talking and hanging out. Find the right people, make sure to consider personality, and everything else will fall right into place! According to Widewail, a significant majority of positive Google reviews for U.S. apartment properties—64%—highlighted on-site staff members as a key highlight. In an industry that is increasingly becoming automated, human interaction is still important to tenants! 🏢 #ApartmentLiving #CustomerExperience

What is the average stay at a self-storage facility? A week, a month, a year? You'll be surprised. The average stay at a self-storage facility can vary significantly depending on several factors, such as the reason for storage, location, and type of customer (e.g., residential or commercial). Residential Customers. For individuals and families, the average stay often ranges from a few months to over a year. People typically use self-storage during transitional periods, such as moving, downsizing, or remodeling their homes. According to industry reports, the average duration for residential customers is approximately 12-18 months. Commercial Customers. Businesses may use self-storage for longer durations, particularly if they are using the space for inventory storage, document archiving, or as a secondary warehouse. Commercial clients can maintain storage units for several years, with an average stay often exceeding 24 months. Location Impact. The location of the self-storage facility can also influence the average stay. Urban areas with higher population mobility and limited residential space might see shorter average stays, whereas rural or suburban areas might have longer stays due to less frequent moves and more stable housing situations. Seasonal and Short-Term Usage. Some customers use self-storage for very short periods, such as college students storing belongings over summer break or individuals storing items during short-term travel or temporary relocations. These stays can last from a few weeks to a few months. Overall, while there's a wide range in the length of stay, industry surveys and reports suggest that the average stay at a self-storage facility typically falls between 12 and 18 months for residential customers, and longer for commercial clients. Follow us at Storagepointcapital.com to learn more about how you can actively or passively be a part of the best-in-class commercial real estate asset. Have a self-storage facility to sell or land for self-storage development? Let's talk. Call, text, or email me today! Ed Clement Director of Business Development, Storage Point Capital eclement@storagepointcapital.com (727) 946-0745 https://lnkd.in/grecpSm3 #selfstoragebusiness #selfstorage #business #selfstorageinvesting #realestateinvestor #commercialrealestate #selfstorageindustry #selfstoragedevelopment #investing