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SAN DIEGO-As GlobeSt.com recently reported, apartment units are getting smaller every day, and developers say that's exactly what tenants—particularly those in large cities—want. Kauri Investments chairman Jim Potter spoke at the ULI Spring Meeting about this trend and how his firm is capitalizing on it.

Under the brand name FootPrint Living—a comprehensive concept for micro apartments that provide green, affordable and flexible housing in locations that offer high walkability—the  firm has developed a series of multifamily projects (including Solana, Tudor Manor and Videre, pictured below) that are LEED certified or built to green-building standards. The projects aim to meet the needs of Generation Y and include bike racks and storage and centralized fully furnished kitchens. The average tenant makes between $30,000 and $50,000 per year and seeks safe, quality, well-located housing with affordable rents. Some of the units, which made their successful debut in Seattle and are being mirrored in a pilot program in Oakland, CA, are as small as 100 square feet.

One of the goals of the pilot program in Oakland was to drive quality housing in Downtown Oakland. The mayor of Seattle has endorsed these micro units, and New York City Mayor Bloomberg has endorsed a similar program there. The overall feeling is that programs like FootPrint would have a positive impact on housing, retail and employment since they are usually in the hearts of cities and are close to retail stores, public transportation and Zip cars.

As GlobeSt.com reported earlier, according to David Adelman, principal of AREA Real Estate LLC, who spoke with Potter during the ULI Spring Meeting panel session “Is Micro the New Macro?”, for projects his firm has completed along San Antonio's Riverwalk efficient use of space is the name of the game. Galley kitchens are the norm, the space is adaptable to a variety of furniture configurations and common-area amenities are highly valued. Every bit of space is put to use, from the boxing gym underneath the popular outdoor pool to the landscaped dog park to the community grills and dining tables in the courtyards. “Every nook and cranny is programed for usability,” said Adelman.

He added that the 450-square-unit apartments were the first to be rented, and some units in demand are as small as 380 square feet. Because the units are so small, the common-area amenities are especially important, and innovation in these is needed to discover exactly what will attract a particular renter—things like welcoming nearby food trucks to visit the complex regularly and creating a super-pet-friendly environment.

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