IRVINE, CA—High-tech amenities, collaborative community spaces and demographic shifts are all affecting the way multifamily property managers are approaching their work, Western National Property Management's SVP Cindy Wick tells GlobeSt.com. With the Orange County multifamily market seeing tremendous growth in the past quarter, we spoke exclusively with Wick about trends in new apartment-community management, including technology, indoor/outdoor amenities and rental rates.

GlobeSt.com: What trends have emerged in the multifamily space that has impacted the way new apartment communities are being managed?

Wick: For starters, we are seeing a tremendous increase in demand for more modernized units with high-end finishes that deliver a luxury, resort-style look and feel. Residents are placing a greater emphasis on the quality of an apartment community, and are willing to pay a premium for a space that offers first-rate amenities and services. This differs from the high-end amenities of the past such as granite countertops and hardwood floors. Today's renters are seeking concierge services and out-of-the-box amenities such as car-charging stations, food delivery services, and high-tech apps. As a result, property managers are constantly taking a creative approach and coming up with new and innovative ways in which they can add an extra element of service to residents and differentiate their properties from competitors.

Another trend that is sweeping the multifamily industry is the shift toward sustainability. Property managers are seeking new and creative strategies to conserve natural resources and ultimately minimize expenses that can dramatically impact the financial health of an asset over time. As utility costs continue to climb, especially in drought-plagued areas, sustainability is no longer just an option but a necessity, and property managers are taking note. Some of the most effective and widespread sustainable practices include replacing turf with drought-tolerant landscaping and native plants, installing drip irrigation systems and integrating low-flow faucets to curb water consumption. For example, we integrated low-flow toilets at one of the multifamily communities we manage and were able to reduce water use by more than 18%, resulting in a significant decrease in operating costs. This water reduction of more than 8 million gallons translated to a reduction in costs of more than $32,000 in 2015. By substantially curtailing water usage, property managers can decrease operating costs, and maximize profit margins for owners while also minimizing a property's carbon footprint.

GlobeSt.com: What are some of the latest high-tech apps that are revolutionizing the multifamily industry, and how do these digital apps play into property management?

Wick: It's no secret that technology is revolutionizing and, in some cases, disrupting the multifamily industry. Whether it's new high-tech amenities such as keyless entry units or the availability of Wi-Fi throughout the common areas, technology plays an integral role in the way that properties are being marketed and managed today.

As we approach Q4 of this year, we are definitely seeing a stronger push towards tech-focused amenities and even digital apps. Tech startups and entrepreneurs are working closely with commercial real estate investors to provide apps that are changing the resident experience. For example, virtual reality is becoming a “reality” in the multifamily sector, allowing residents to view 3-D interactive tours of each apartment unit online or even on their smartphones. By providing prospective residents with these additional online resources, owners can boost the overall marketability and bottom-line profitability of the multifamily community.

In addition to high-tech virtual tours, property managers are paying close attention to service apps that will benefit their residents. One such app, Updater, allows residents to streamline the move-in process by allowing them to update all of their online accounts with their new address, contact utility service providers for easy installation and forward mail with one click. By presenting these service apps as an additional amenity, owners can improve and enhance the resident experience, which in turn will drive retention and revenue in the long run.

GlobeSt.com: How are property owners pushing the envelope when it comes to integrating indoor/outdoor gathering areas in each of their apartment communities?

Wick: This year we saw a significant increase in community gathering areas that shed the boundary between indoor and outdoor space. Today's multifamily owners understand that providing creative communal spaces that encourage conversation and socialization can drive retention and strengthen residents' ties to the apartment community. Owners and investors are becoming more creative in their approach to delivering these social hubs. Through innovative landscaping and outdoor amenities, property managers can provide communal spaces for residents to call home and build lasting relationships.

We manage a property in San Clemente that is indicative of this trend. It features a state-of-the-art fitness center where the walls are built entirely out of collapsible glass. This cutting-edge design creates the illusion of being outdoors and breaks down the boundary between indoor and outdoor space. Located near the Pacific Ocean, this apartment community allows residents to enjoy the breeze off the coast during their workout.

GlobeSt.com: What demographic shifts are taking place in today's market, and what is your firm's outlook on demand from these demographics in Q4 and beyond?

Wick: While Millennials are certainly contributing to the increased demand for multifamily units, they are not the only demographic to watch in the next few years. There are several reasons for this. With rising rental rates driving the affordability challenges in today's market, many Millennials are electing to live at home with their parents longer. Older Millennials are beginning to reach the age where they are starting to settle down, get married and make the transition into homeownership by moving to the suburbs. Baby Boomers, on the other hand, are downsizing and transitioning into apartments of their own. Many of them are working well into their 60s and 70s, meaning they are looking for centrally located apartment communities in close proximity to jobs.

As a property management firm, we ensure that we accommodate both demographics by providing amenities that will appeal to both Baby Boomers and Millennials. We anticipate strong demand from both groups in Q4 and beyond.

Steady gains in the US economy have resulted in net positives for the multifamily sector—will this wave continue for the foreseeable future? What's driving development and capital flows? Join us at RealShare Apartments on October 19 & 20 for impactful information from the leaders in the National multifamily space. Learn more.

GlobeSt.com: What trends have emerged in the multifamily space that has impacted the way new apartment communities are being managed?

GlobeSt.com: What are some of the latest high-tech apps that are revolutionizing the multifamily industry, and how do these digital apps play into property management?

GlobeSt.com: How are property owners pushing the envelope when it comes to integrating indoor/outdoor gathering areas in each of their apartment communities?

GlobeSt.com: What demographic shifts are taking place in today's market, and what is your firm's outlook on demand from these demographics in Q4 and beyond?

Instant Insights /

New Trends in Multifamily Management

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