Multifamily development is stuck! One of the key solutions outlined by Jonathan Scherr in his article for Thesis Driven? 🧐 Construction speed. 🏗 ⚡ 💨 "Saving time and money during construction is where the real value lies once." 📅 If you can prevent delays to project kickoff, you can deliver the final product sooner. ⏳ If you can de-risk the permitting process, you can better plan for timelines and project starts and avoid slow downs. So... let's get some permits approved. ✅ #construction #multifamily #getpermitsfaster #breakgroundsooner #withpulley #contech
As we open 2024, Thesis Driven tackles how we get multifamily development unstuck in the new year. Today's guest letter from Jonathan Scherr, founder of Juno, studies how a combination of rising rates and construction costs made development increasingly infeasible over the past 18 months and how developers are trying to make things pencil despite the headwinds: ✨ Novel operating models | Flex rentals, coliving, and other site optimization techniques can push rents per square foot but can draw questions from lenders. 💻 Design innovation | Generative design can save design time and cut down timelines, saving on financing costs. 🏗 Construction speed | In light of a construction labor shortage and high construction and financing costs, improving construction speed through better tech or optimized management has a major impact on project returns. ⏱ Wait it out | If consensus holds, rates will likely drop in 2024. Many developers will simply choose to wait it out until lenders move back into the market and rates normalize. Jonathan dives deep into the underlying economics to paint a picture of how development can rebound in 2024! Full letter linked in comments.