Washington, D.C., Forecast as Worst-Performing Market in 2014
Digested From "The Apartment Market Performance Is Backtracking in Washington, DC"
Property Management Insider (01/17/14) Willett, Greg
MPF Research is projecting that Washington, D.C., will be the worst performer for revenue change across the nation's biggest metro areas, with declines in both occupancy and rent achievement combining for a total loss near 2 percent. Metro D.C. is already dealing with a lot of new apartment product moving through the initial lease-up process. Deliveries last year increased to 10,100 rental units, marking the largest calendar-year volume recorded in the two decades that MPF researchers have been tracking the local marketplace. Analysts expect the impact of new supply on overall performance momentum will be even more pronounced in the near term, with scheduled completions in the new year on pace to obliterate last year's record. Apartment communities on track to be completed by the end of December currently total around 19,300 units. At the same time all of these new apartments will hit the market, the local job creation pace is slowing. The latest Bureau of Labor Statistics figures show annual employment additions of nearly 24,000 positions as of fourth-quarter 2013. More and more top-end communities in the nation's capital are already slashing rents in an effort to retain residents.
Market Trend Insights
Houston's Energy Corridor Powers Local Apartment Sector
Digested From "Apartment Buildings Rise in Energy Corridor"
Houston Chronicle (01/17/14) Baird, Annette
In Houston, hundreds of new apartments are on track to open over the next year to meet the demands of a growing workforce in the metro area's Energy Corridor District. Single-family housing inventory is at a record low locally, and prices are expected to continue to climb in and around this district. Ann Knoche of Heritage Texas Properties states, "As  progressed, we've seen less inventory and more buyers." There aren't as many houses to select from, and those that are up for sale don't stay on the market for very long. Thus, an apartment boom has taken root. Among the most aggressive developers in the market have been Alliance Residential Co, Trammell Crow, and locally based Allen Harrison Co. Clark Martinson, the Energy Corridor District's general manager, states, "What's unique about what's happening today is that there are so many new apartments, and they are really desirable."
Philadelphia Apartment Market Ends Year on High Note
Digested From "Philadelphia Metro Apartment Market Ends Year on High Note"
Philadelphia Business Journal (01/13/14) Kostelni, Natalie
The Philadelphia metro area's apartment sector ended 2013 on a strong note despite more rental units coming onto the market in both Center City and the suburbs. The city's apartment market saw asking rents increase 2.6 percent and its vacancy rate dip slightly to 3.3 percent, reports Reis Inc. Average monthly rent is now $1,092. Of the 79 U.S. markets Reis monitors, Philadelphia placed 24th in its vacancy rate. The average vacancy rate across the country was 4.1 percent as of Dec. 31. Analysts are curious to see how Philadelphia's apartment sector will fare in the new year as additional units are added to the market.
Where There's a Wilmington, There's a Way-Cool Apt. Boom
Digested From "Region's Apartment Bonanza Rolls On"
Greater Wilmington Business Journal (01/14/14) O'Neal, J. Elias
According to a recent report by Multifamily Realty Advisors, more than 1,200 apartments are currently under construction throughout the greater Wilmington, N.C., area, nearly double the number of rental units being built at this time last year. The firm reported 1,260 new apartments currently under construction in and around Wilmington -- an increase from just 690 units completed by this time in 2013. A large number of these new units are located near the University of North Carolina Wilmington campus and in suburban Mayfaire and Landfall. Also seeing increased development activity is Northern New Hanover County, particularly in the Porters Neck and Ogden areas.
Deals and Transactions
A Landmark Close-Out to 2013
Digested From "Landmark Apartment Trust of America Fuels Growth with $443 Million Investment"
Business Wire (01/14/14)
In the last three months of 2013, Landmark Apartment Trust of America acquired 13 apartment communities and seven joint venture ownership interests in apartment communities throughout the U.S. South for a total investment of approximately $443 million. The firm's total 2013 acquisition activity includes 50 communities with 15,868 rental units, making up about $1.04 billion in transaction value. "This year marks one of the strongest in our operating history," said CEO Stanley J. Olander. "Our success has been driven by the experience of our management team and our straightforward acquisition strategy that focuses on select sunbelt metropolitan markets poised for sustained economic growth. We are pleased to end the year on a positive trajectory and remain focused on expanding our portfolio in 2014."
In What Three States Did Timberland Acquire Four Apt. Communities?
Digested From "Timberland Acquires Four Properties Totaling 818 Units"
Multi-Housing News (01/14) Stribling, Dees
In December, Timberland Partners acquired a total of four apartment communities in three states -- Michigan, Kansas, and Florida. Together, the four communities contain 818 rental units. The Minneapolis-based company currently owns more than 8,300 apartments and 541,000 square feet of commercial space nationwide. It plans to acquire more multifamily housing assets throughout 2014. According to Matt Fransen, Timberland Partners' vice president of investments, the firm is not ruling out the pursuit of Class A assets in secondary and tertiary markets. However, its primary focus in 2014 will be value-add Class B apartment communities of 150 or more units located in the secondary and tertiary markets of the Midwest and Sunbelt. He concludes, "We believe there's more opportunity in this product type for longer term at this point in the real estate cycle, especially sustained rent growth. Also, prices seem to be in balance for Class B properties in these markets and have yet to become overly bid up. There's still value that can be realized in this space."
Can Bike Parking Lots Attract Millennials?
Digested From "Apartment Buildings Add Bike Parking Lots To Attract Millennials"
PSFK (01/12/14) Chu, Serena
Bicycles are becoming an increasingly popular alternative to cars in many markets. Consequently, it is only logical that more and more apartment communities should be thinking about adding bike parking lots to their list of amenities. A 657-unit apartment community now rising in Portland's Lloyd District will boast a massive parking facility that can hold up to 1,200 bikes. Looking to appeal to the young, urban professional demographic, the architects of this project report that each apartment will receive one bike parking spot. Portland is an ideal test market as it ranks as one of the most cycle-friendly cities in the country.
Do You Know Your Hidden Work Biases?
Digested From "Bringing Hidden Biases Into the Light"
Wall Street Journal (01/09/14) Lublin, Joann S.
More employers are offering training programs that help staffers recognize unconscious biases, such as a preference for certain groups, and overcome their influence in workplace decisions. The defense contractor BAE Systems Inc., for instance, requires all middle managers and executives to take a two-hour class covering unconscious bias, which the company says is at least partly responsible for its increased promotions of women and people of color. The training program can uncover biases against introverts, short or overweight people, those with arm tattoos, and workers from a particular generation, among others. However, experts say unconscious-bias training must also be accompanied by changes in workplace practices, such as requirements for a more diverse selection of candidates or initiatives to advance more women and minorities.
Fortune Favors Camden Property Trust
Digested From "Camden Property Trust Named One of Fortune Magazine’s “100 Best Companies to Work For”"
Camden Property Trust is ranked No. 11 on Fortune Magazine's newly released 17th annual "100 Best Companies to Work For" list. "We are honored to be recognized for the seventh consecutive year as one of the best workplaces in America," said Keith Oden, president of the apartment REIT. Each year, the publication partners with the Great Place to Work Institute to make its conclusions. Two-thirds of each company's score is based on the results of the Institute's Trust Index Survey, which is sent to a random sampling of employees. The other third is based on the firm's responses to the Institute's Culture Audit. "Our inclusion on this list is a tribute to the hard work and dedication of our 1,800 Camden associates," said Oden. Nationwide, Camden Property Trust has ownership stakes in 170 apartment communities containing 59,899 rental units, with another 12 properties in various stages of planning and development.
Multifamily Factors in New Fed Growth Numbers
Digested From "9 Federal Reserve Districts Post Moderate Economic Growth"
Housing Wire (01/15/14) Swanson, Brena
In the Federal Reserve's latest Beige Book, nine out of the 12 Fed districts posted moderate economic expansion. Most districts reported "slight to moderate" increases in residential construction. Dallas, though, cited a slight decline even as it reported elevated construction levels for multifamily housing units. Similarly, three districts -- Atlanta, Cleveland, and Chicago -- posted robust multifamily construction. Eight of the 12 districts said their contacts expect overall residential building to pick up in the near term, including Chicago, Minneapolis, Kansas, St. Louis, and San Francisco. Eight districts also reported gains in commercial real estate sales and leasing activity.
Legal/Legislative Did You Know
A Whole Lotta Shakin' Goin' on in the L.A. Mayor's Office
Digested From "L.A. Vows to Take Big Step in Earthquake Protection"
Los Angeles Times (01/14/14) Lin II, Rong-Gong; Xia, Roxanna
Los Angeles Mayor Eric Garcetti recently announced an ambitious plan to tackle earthquake safety, including a new effort to strengthen vulnerable buildings. Garcetti said the city will partner with the U.S. Geological Survey to better protect private buildings as well as telecommunications and the water supply during a major quake. The announcement comes as the City Council is considering several seismic safety initiatives, including creating inventories of potentially dangerous concrete and wooden soft-story buildings. Together, the measures mark the most significant effort to improve earthquake safety in Los Angeles. The partnership with the U.S. Geological Survey is unusual, but one that the federal government believes is important in reducing the country's earthquake risk. Garcetti has laid out a timeline for the next year's goals: first, identify the problems, talk to building owners, and tenants throughout the spring, then consult with technical experts about possible solutions.
Who Is Responsible for Apartment Fire Escapes in Philly?
Digested From "Philadelphia: Building Owners Responsible for Fire Escapes, Not City"
Newsworks.org (01/13/2014) MacDonald, Tom
After a fire escape collapse at a Philadelphia apartment building killed one person and hospitalized two others on Jan. 12, city government is making it clear it is not obligated to inspect fire escapes. According to Rebecca Swanson of Philadelphia's Department of Licenses and Inspections, it is up to building owners to maintain these emergency escape routes. She notes, "Under the property maintenance code, they are required to keep the fire escape free of snow and ice free of debris because it's is a means of egress in case of emergency. It is up to the property owners to maintain and keep them in good working order."
Mayor Michael Nutter's administration is now reviewing the incident. New buildings in Philadelphia are required to include enclosed fire tower stairways to provide alternative means of leaving during an emergency. However, the building where the fire escape collapsed is more than 100 years old. An unnamed spokesperson for the Apartment Association of Greater Philadelphia says the group supports periodic inspections of the fire escapes, enforced by the city. The association adds that any responsible owner should maintain all parts of a building properly.
Seth Mattison, Chief Movement Officer at FutureSight Labs, Personally Invites You to Register for the 2014 NAA Student Housing Conference & Exposition
Seth Mattison, internationally renowned expert on workforce trends and generational dynamics and Chief Movement Officer of FutureSight Labs, will entertain attendees with his presentation, “When Generations Connect,” from noon to 1:30 p.m., Wed, March 5 at the 2014 NAA Student Housing Conference & Exposition, March 3-5 at the ARIA Resort in Las Vegas.
Where it concerns generational differences in the workforce, it used to be that veteran employees were in sole possession of all the answers, with less-seasoned colleagues following orders. My how things have changed, says Mattison. He personally wants to invite you to attend the 2014 NAA Student Housing Conference & Exposition: Watch his brief message to you.
Whether you’re an accomplished multihousing industry professional managing younger co-workers, a skilled Gen Xer up-managing or a Millennial new to the workplace, Mattison’s insights will aid you develop a working knowledge of the generations operating in today’s workplace; diagnose critical generational gaps that can lead to conflict and challenges; overcome key roadblocks to creating stronger engagement with each generation; and apply a variety of solutions to more effectively communicate and collaborate to increase innovation and productivity. Want more? Have a look at Mattison’s interview with units Magazine in the January issue.
Awaiting you is actionable intelligence and turnkey solutions perfect for helping you achieve your personal and professional goals. Register today and keep checking www.naahq.org/shc for schedule, housing and the latest announcements. And remember to use the official hashtag #NAAStudentConf to engage, discuss and follow the conference.
2014 NAA Education Conference & Exposition General Session Speakers: Because NAA Said You Can Swim With the Sharks in Denver
Despite there being no oceans in Colorado (plenty of beautiful mountains, though!), there will be no shortage of sharks during the 2014 NAA Education Conference & Exposition, June 18-21 in Denver.
NAA is proud to announce that Barbara Corcoran and Daymond John, two of the stars of ABC’s hit TV show “Shark Tank,” will be the Friday General Session speakers, June 20, from 9:45 a.m. to 11:15 a.m.
Corcoran, who started her real estate business with a $1,000 loan and then built the largest and most successful company in New York City, will share her personal advice, insights and anecdotes on creating a powerful brand. John, regarded as one of the most sought-after branding experts and keynote speakers in fashion and business today, will share his knowledge and business genius with NAA Conference attendees.
Learn more about Corcoran and John, and be sure to stay tuned for an exciting announcement about what these two incredible entrepreneurs have in store for three lucky Conference attendees (Hint: Start getting your pitch ready!).
In addition, the Saturday NAA Awards Breakfast will feature Special Guest Speaker Alex Sheen, Founder of Because I Said I Would, a fresh inspiring and powerful message of bettering humanity through the power of a promise and one that will resonate with all NAA Conference attendees. Learn more about Sheen and make sure to get a great seat up front for his presentation, June 21 from 8:45 a.m. to 11:30 a.m.
Find and follow NAA and NAA Education Conference on Twitter and like NAA on Facebook to keep up with the latest, up-to-the-minute announcements from the National Apartment Association.
Invest in your company and your career today. Register now and remember that the largest discounts go to those who sign-up early. Have four friends? Register as a group to take advantage of even more savings!
And, make sure to book your housing as soon as you register—rooms will go fast and you will be unable to book without first registering. Visit the Education Conference website for information and reservations for all official NAA Education Conference hotels.
Former Sen. Alan Simpson to Speak at NAA Capitol Conference
Former U.S. Sen. Alan Simpson (R-Wyo.) will provide a candid look on politics, the economy and the hard choices that America’s leaders face during the 2014 NAA Capitol Conference’s keynote luncheon on March 11. His address is entitled “The Moment of Truth: Confronting Issues in America.” Known for his quick wit, Simpson addresses controversial topics on the national agenda with honesty and provides sensible solutions for moving the country forward.
Invest in your political capital by participating in the 2014 NAA Capitol Conference – the only national event focused on apartment industry advocacy. The annual conference will be held on March 11 in Washington, D.C., followed by the industry’s Lobby Day on Capitol Hill on March 12 (The spring NAA Board of Directors and committee meetings precede the conference on March 9 and 10.). Registration is now open.
The NAA Capitol Conference will prepare you to carry your message on major industry issues as an informed, effective, confident advocate. This year there will be a new special event, expert national speakers on policy and politics, and more training and educational sessions for new and long-time attendees alike.
Be Part of the 2014 Get Reel Video Challenge
In honor of Apartment Careers Month in February, The National Apartment Association Education Institute (NAAEI) is calling for video submissions for it's 2014 Get Reel Video Challenge. Aimed at promoting careers in the apartment industry in Management, Leasing and Maintenance, videos should highlight a day in your work life and show what you love about your job and the industry. A panel of industry experts will judge all entries and choose the winner who will receive a trip to the NAA Education Conference in June in Denver! View more details on rules and how to enter on the NAA website.
IROP Class Starts on Wednesday, Jan. 22
The Independent Rental Owner Professional (IROP) designation program is offered to the rental owner who manages their personally-held multifamily property or properties. The independent rental owner serves several roles in property management, public relations specialist, administrator, chief financial officer, marketing director and operations manager. Independent rental owners who take the IROP course will learn the many business practices of professional property managers and can now earn the IROP designation after completing the course of study and passing the online exam. With the help of other independent rental owners who devoted their time and expertise to this program, you will receive an "insider's view" of property ownership and management practices.
The Independent Rental Owner Professional (IROP) course will be offered as a webinar series from 1 - 4 p.m. ET on the following days:
Don't wait, register today.
NAAEI Designation Courses Offered Near You!
Apartment Association of Greater Omaha & Lincoln
March – April, 2014
Apartment Association of Greater Omaha & Lincoln
March – April, 2014
Columbus Apartment Association
January – February, 2014
Austin Apartment Association
February – March, 2014
Rental Housing Association of Boston
April – May, 2014
Chicagoland Apartment Association
May – June, 2014
Apartment Association of Southeast Texas
May – June, 2014
Chicagoland Apartment Association
Apartment and Office Building Association of Metropolitan Washington
Find more courses in your area on the NAA website.
For more information about any of the classes listed, please contact Kimberly McCrossen at 703/518-6141 ext. 121.
Abstract News © Copyright 2014 INFORMATION, INC.