Communal Spaces Don’t Equal Resident Interaction

As multifamily owners continue to add more services and hotel-like experiences, residents are also increasingly interested in property-hosted events. These events help to bring residents together and create a sense of community, which can both lead to better occupancy and less unit turn-over as well as more premium rents.

“Residents love property-hosted events. Communal spaces alone do not equal resident interaction,” Gidi Cohen, founder and CEO of CGI Strategies, tells GlobeSt.com. “Human nature still rules and residents need that extra reason to push them closer together and to catalyze connection. Developers still have creative control of what types of spaces and amenities return the most value in terms of resident satisfaction and willingness to pay a premium rental fee.”

Curated and hosted events also help to create the hospitality experience that so many owners and operators of multifamily are looking to achieve. While amenities have been the focus, creating a curated experience goes beyond the physical space.

“To date the most desirable services are well-trained and helpful staff, luxury finishes, curated and hosted events, free Wi-Fi and creative and comfortable workspaces,” says Cohen. “A big tell from verbal and written experiential reviews is that authentic, meaningful, and long-lasting human interaction is the reigning important factor for most residents—both with other tenants and with management staff. Developers and operators who invest in staff training and the production of human engagement experiences will enjoy the most success.”

With the impact on physical development and the capital investment that multifamily owners are making, it is clear that this isn’t a short-term trend. “Every indication suggests that amenity-rich developments are the new normal,” adds Cohen. “As more third-party applications and services are innovated, developers will expand their community offerings. The bar is only being raised from here. If a solution for resident comfort exists it’s only a matter of time before a developer/ operator offers it.”

While this is a long-term trend, it could lead to issues as multifamily owners evolve. “From here we will see some developers bring to market highly desirable and well-planned community residences and we will likely see some busts,” adds Cohen. “We are confident that our strong market research and community engagement during due diligence gives us all that we need to present residences that are desirable to potential residents and beneficial to the communities they serve.”