Apartment Industry Pushes Economic Impact Message
Digested From "Apartment Industry Pushes Economic Impact Message"
PRWeek (06/21/13) Lewis, Tanya
Earlier this year, the National Apartment Association (NAA) and the National Multi Housing Council (NMHC) launched a campaign to increase awareness among policymakers of the apartment industry's economic impact. "After the housing collapse people are thinking differently about housing overall and the role rental properties play in the economy," says NMHC's PR Director Jim Lapides. “The apartment industry didn't over-build and face the same collapse that the single-family housing sector did. The apartment industry is a strong, important part of the housing market, and it was time for us to tell that story." The organizations worked with George Mason University economist Stephen Fuller to create a report highlighting the economic impact apartments bring to communities nationwide. Trade, business, finance, and real estate reporters and bloggers were targeted in 12 markets that have large apartment footprints and are home to key members of Congress. National outlets were also targeted. The reporters were given localized economic information for each market. Messaging drove audiences to www.weareapartments.org, which publishes research findings and state-by-state data. The campaign was also promoted on NAA's national and local affiliates' social media pages. Between February 12 and March 31, the website got 5,000 visits, 14,300 page views. By mid-June, those numbers increased to 22,000 visits and 44,000 page views. More than 150 stories ran in all 12 markets. The campaign will continue with a spotlight on telling stories related to the economic impact data.
Market Trend Insights
Silicon Valley Apts Offer Luxury, 'Connected' Lifestyle — at a Price
Digested From "New Silicon Valley Apartments Offer Luxury, 'Connected' Lifestyle — at a Price"
San Francisco Chronicle (06/12/13) Said, Carolyn
After a long lull during the recession, California's Silicon Valley is experiencing a wave of apartment and condominium construction similar to that in San Francisco. Approximately 8,000 such units are now in various stages of development throughout Santa Clara County and another 1,700 in San Mateo County, reports Cassidy Turley. Builders are targeting Generation Y/Millennials with such amenities as wireless Internet, on-site fitness centers, and even dog washing stations. In Foster City, for instance, The Plaza from Sares Regis Group of Northern California recently finished construction in January. Amenities range from a brand-new gym to sauna facilities to a movie-theater room. Asking monthly rents range from about $2,600 for a one-bedroom apartment to as much as $5,000 for its highest-end three-bedroom unit.
Manhattan’s Biggest Community Agrees to Drop Some Rent Increases
Digested From "Manhattan's Biggest Apartment Community Agrees to Drop Some Rent Increases"
New York Times (06/19/13) Bagli, Charles V.
A significant rent increase at Manhattan's largest apartment communities raised the prospects of an exodus from a historically middle-class community that has been in turmoil for years. On May 14, Stuyvesant Town and Peter Cooper Village slipped the notice of a sudden rent increase under the doors of 1,100 residents, raising the rent up to 49 percent for some in two weeks time. But the June 1 start of the rent increase was postponed, and on June 18, State Attorney General Eric T. Schneiderman announced that the firm that controls the community, CW Capital, would rescind the mid-lease increases for residents who had been told by agents that they would never occur. CW capital is requiring residents to submit affidavits stating that the agent misled them about a clause in the lease that allows for mid-lease changes. "I'm hoping that this will end the residents' latest struggle to keep Stuyvesant Town and Peter Cooper Village a haven for the middle class," said Schneiderman. "The agreement we reached ensures that residents are treated fairly, provided they can describe how they were misled by leasing agents."
Balancing Occupancy and Rents in Tampa Apartments
Digested From "Balancing Occupancy and Rents in Tampa Apartments"
Property Management Insider (06/18/13) Willett, Greg
While the majority of individual apartment markets across the nation have seen occupancy recover fully from the recession, there are still a few spots where occupancy needs improvement. Additionally, some areas are struggling to get the rent positioning just right. Tampa is one of those places. While overall statistics for the metro area show modest progress in both occupancy and rents over the course of the past year, results in only a few individual submarkets actually moved in the right direction. There were significant occupancy increases in neighborhoods where little rent occurred; and flat to declining occupancy registered in neighborhoods where rents were raised at comparatively aggressive levels. When it came to occupancy improvement during the year ending in the first quarter, South St. Petersburg, University, Temple Terrace, and West Pasco County/Hernando County submarkets were the big winners. Meanwhile, Carrollwood/Citrus Park, Largo/Seminole, Central Tampa, and Town & Country/Westchase were on the opposite end of the spectrum.
U.S. Apartment, Home Construction Rises 6.8 Percent in May
Digested From "U.S. Apartment, Home Construction Rises 6.8 Percent in May"
Associated Press (06/18/13) Crutsinger, Martin
Encouraged by more buyers and a scarcity of houses for sale, builders began construction on more single-family homes and apartments last month. The overall pace of homes started rose 6.8 percent in May to a seasonally adjusted annual rate of 914,000, according to the Commerce Department. Apartment construction surged 21.6 percent to an annual rate of 315,000, after a big drop in April. Applications for building permits fell 3.1 percent in May to a seasonably adjusted 974,000, remaining close to a five-year high seen in April.
L.A. King of Down-Market Offices Bets on Apartments: Real Estate
Digested From "L.A. King of Down-Market Offices Bets on Apartments: Real Estate"
Bloomberg (06/18/13) Brandt, Nadja
David Lee, Founder and President of Jamieson Services Inc. and arguably the largest private office owner in Los Angeles, is converting five of his roughly 60 L.A. office buildings to multifamily units to take advantage of the city's surging demand for rental properties. Many of these soon-to-be-converted properties are located in the Koreatown neighborhoods, though he is also seeking opportunities with ground-up development. Dwindling demand for corporate space has driven vacancies at Lee's properties up to an average of 25 percent, more than triple what they were in 2009. Meanwhile, apartment demand is rising as areas of the city including downtown, Hollywood, and now Koreatown undergo a renewal, industry watchers say. Throughout Los Angeles County, office vacancies averaged 16.8 percent in the first quarter, up from 5.8 percent during the market's latest peak, according to brokerage CBRE Group Inc., which noted that gross monthly rents dropped to $2.58 a square foot from $2.84 over the same period. Nationwide, apartment vacancies fell to 3.2 percent in the first quarter from their latest high of 5.5 percent in early 2010, according to New York-based research company Reis Inc.
Many Apartment Communities Still Not Recycling
Digested From "Many Apartment Communities Still Not Recycling"
Riverside Press-Enterprise (CA) (06/17/13) Rodriguez, Nelsy
The Renters Right to Recycle Act, which requires apartment communities in California to provide recycling opportunities to their residents, will be one year old on July 1. However, many communities are not yet in compliance with the law. According to the recycling law, only 40 percent of apartment residents have access to recycling. Recycling receptacles are not on many properties throughout southwest Riverside County. According to Dale West, a Temecula senior associate in charge of the solid waste recycling program, said Temecula rolled out its oversight of the law by focusing first on commercial businesses. It will begin to focus more on multi-family housing in the coming fiscal year, he said. With the first year off the calendar, property managers are likely to face concerns that have preventing them thus far from providing the service. Apartment communities have two years to comply with the law.
Deals and Transactions
Mixed Use Community Near Dallas Galleria Sells to Crow Holdings
Digested From "Apartment and Shopping Community Near Dallas Galleria Sells to Crow Holdings"
Dallas Morning News (Texas) (06/19/13) Brown, Steve
A high-profile apartment and retail community near the Dallas Galleria shopping mall has been sold to an investment firm established by Crow Holdings. Crow Holdings purchased the Broadstone Parkway project, a 333-unit luxury rental community with more than 39,000 square feet of retail space. The community was sold by San Antonio-based insurance investor USAA Real Estate, which acquired the property in 2009.
Downtown Apartment Project Could Get Nearly $3 Million From City
Digested From "Downtown Apartment Project Could Get Nearly $3 Million From City"
Green Bay Press Gazette (06/18/13) Ryman, Richard
The Redevelopment Authority could provide almost $3 million in assistance to a developer building apartments on East Walnut Street in downtown Green Bay. A development agreement approved by the authority recently, and by the Green Bay City Council on June 18 would result in a $14.8 million project that includes 93 residential studio, one-bedroom, and two-bedroom apartments, as well as 3,316 square feet of retail space. The Redevelopment Authority plans to sell the land to Dermond Property Acquisition of Milwaukee for $500,000, but the cost will decrease to just $200,000 if the developer owns it for 10 years or it reaches an assessed value of $10,000 million. The developer will get the property for free if the assessed values reaches $11.5 million. Additionally, the RDA pledged at least $2.48 million in tax-increment finance district assistance to the Metreau building project.
Post Brothers Make Apartment Sale
Digested From "Post Brothers Make Apartment Sale"
Philadelphia Business Journal (06/17/13) Kostelni, Natalie
A 92-unit apartment community in Philadelphia called Copley Manor has been sold by Post Brothers for some $6.3 million, or about $68,000 per unit. "It's a huge number," says Mark Thomson, who joined Zachary Pierce and Steven Rutman of Marcus & Millichao to arrange the transaction. The number is significant because 62 of the 92 units are studios measure approximately 400 square feet each, says Thomson. The property is 96 percent occupied. The property is the first apartment community sold by Post Brothers, which purchased Copley Manor in 2007 for $2.9 million and invested $1.75 million to upgrade it. The company has frequently made gutting projects to convert existing locations into shells. The brokers gave 40 property tours of Copley Manor to investors and had 17 qualified offers, indicating a strong local apartment market. "We're getting a lot of interest in Philadelphia from investors from New York and Washington D.C. because of the returns," Thomson says. The New York-based buyer is making its first acquisition in Philadelphia.
Veterans Connected To Jobs In Apartment Industry
Digested From "Veterans Connected To Jobs In Apartment Industry"
KPBS.org (CA) (06/19/13) Anderson, Erik
The National Apartment Association Education Institute reports that its members employ 700,000 people from across the country, and they want to hire thousands more. Apartments owners from around the country are meeting in San Diego to reach out to Veterans looking for jobs. The booming apartment industry is one reason the association held a military job fair recently. Approximately 15,000 veterans transition out of the service in San Diego County each year. "They are resilient. They know how to adapt and overcome," said Quintin Pollard, who still works closely with the military. "So, I think just being part of the military family if you're a vet, active duty or a military spouse, you have that built in yourself so you're more productive. And you're more of an asset to any company that wants to hire you. The group donated $25,000 to the National Veterans Transition Services, which aims to help 3,000 to 4,000 vets each year.
NAA Panel Discusses Ways to Help Affordable Housing
Digested From "How Can Affordable Housing Survive?"
San Diego Union Tribune (06/21/13) Leung, Lily
A panel of industry experts at the National Apartment Association Education Conference & Exposition on June 20 discussed new proposals that could generate money in California for low- to moderate-income families. Greg Brown, who heads government affairs for the National Apartment Association, notes many of those solutions involve policies developers tend to dislike, including linkage fees, which developers must pay to underwrite affordable housing. One proposal is to tack on a $75 fee to record certain real estate paperwork. That proposal would not apply to documents related to sales but would apply to documents tied to refinancings, liens and quit-claim deeds. "Unfortunately, I think it's one of those 'stick' measures," said Ann Kern, senior director of housing finance and program development for the San Diego Housing Commission, an affordable-housing organization in San Diego that receives public funding. The proposal is part of a bill before California legislators that would generate enough money to fund 10,000 apartment and single-family homes annually throughout the state, Kern said.
Another state bill, AB 1051, would put aside money to pay for affordable-housing projects near public transit, part of the an effort to reduce greenhouse-gas emissions. Brown, of the National Apartment Association, said states and municipalities will have to do more to fend for themselves to keep affordable housing, leading to "more creativity" in the sector.
NAA Special Report: How Apartment Companies Make Buying Decisions
Digested From "NAA Special Report: How Apartment Companies Make Buying Decisions"
Multi-Housing News (06/13) Foong, Keat
Panelists at the National Apartment Association 2013 Education Conference and Exposition held in San Diego in mid-June pointed out that product and services procurement decisions are made at different company levels depending on the organizational structure of the apartment companies. Speakers at the "Selling to Different Ownership Entities" session provided advice to products and services suppliers regarding how to successfully approach, and obtain business from, apartment companies. Moderator Susan E. Weston, principal of Susan Weston Co., outlined the various ownership structures that could affect the product procurement processes of the apartment company, including owner/managers, who are investor-owners; REITs, who are third-party managers; LLPS and corporations, who have institutional clients; and private owners who are involved in joint ventures. While suppliers often assume that "if they start at the top, they are exposed to all levels of the company," noted Joe Greenblatt, president and CEO of Sunrise Management, "the reality is that I do not have time to dig into every product and service. I am probably the worst guy to speak to." An effective way for vendors to "get their foot in the door" is to offer free trials. Melise Balastrieri, vice president, property management, of MG Properties, said that 30- or 60-day trials in some cases worked very well. Balastrieri added that email was an effective way to reach her, and that one of the most outstanding ways a supplier caught her attention was to email a point-by-point comparison of the product she was using versus the product they offered.
Micro-Apartments: The Anti-McMansions
Digested From "Micro-Apartments: The Anti-McMansions"
CNN Money (06/21/13) Christie, Les
Tiny apartments ranging from 180 to 300 square feet are growing in popularity for young and single individuals, as well as retirees seeking affordable living spaces in the nation's costliest cities. Nowhere is the trend hotter than in Seattle, which has seen the construction of more than 40 micro-apartment developments in the past three years. Other emerging micro-apartment hotspots include San Francisco, Boston, Providence, New York, and Portland. While some residents of such spaces say it requires a lifestyle adjustment, many modern micro-apartments have innovative, efficient designs marked by flexible features, such as dining room tables that turn into beds.
Apartment Energy Use Drops Nearly 40 Percent
Digested From "Apartment Energy Use Drops Nearly 40 Percent"
GreenTechMedia (06/19/13) Tweed, Katherine
While apartment dwellers use significantly less energy than single-family homes due to the smaller size, they also typically have fewer windows and outside walls. Even without substantial energy efficient upgrades in multifamily buildings, the per-household energy use in larger apartment communities has fallen 38 percent since 1980, according to the U.S. Energy Information Administration. The change in energy for heating is even more significant for this housing class, with a drop of nearly 50 percent. While multifamily facilities are not quite the same beast as single-family properties, for those that can crack the nut, it could be a $3.4 billion energy efficiency opportunity, according to the American Council for an Energy-Efficient Economy. There will be many winners and losers in home energy management in coming years, but tailored solutions for the increasing number of apartment dwellers are a niche only a few have tackled.
Legal/Legislative Did You Know
Panel Approves Rent Increase for New York's Rent-Regulated Apartments
Digested From "Panel Approves Rent Increase for New York's Rent-Regulated Apartments"
Wall Street Journal (06/20/13) Barbanel, Josh
Despite calls to freeze rents in New York City by three Democratic candidates seeking to succeed Mayor Michael Bloomberg, a panel appointed by the mayor voted for a rent increase of at least 4 percent for nearly a million city tenants in rent-regulated apartments. The Rent Guidelines Board approved an increase of 4 percent for one-year leases that take effect on or after Oct. 1, or 7.75 percent increase in two-year leases. In testimony and written statements to the panel, City Council Speaker Christine Quinn, City Comptroller John C. Liu, and Public Advocate Bill de Blasio joined tenants groups in calling for a complete freeze on rents. But the board followed the lead of a staff report showing that owner costs rose by 5.9 percent in the year that ended in March. Apartment owners said the increase makes up for some of the paltry increases in past year, but noted it did not address their needs in buildings where residents pay very low rents that do not cover expenses.
Federal Study Finds Gay Couples Face Rental Discrimination
Digested From "Federal Study Finds Gay Couples Face Rental Discrimination"
Los Angeles Times (CA) (06/18/13) Lazo, Alejandro
A HUD study concludes that apartment owners nationwide are discriminating against same-sex partners looking to rent a home together. Homosexual couples received fewer replies from rental agents than heterosexual couples when responding to online ads, based on roughly 7,000 inquiries in 50 U.S. metropolitan areas from June to October of 2011. For each rental unit included in the research, two separate inquiries were sent, with the sexual orientation of the interested couple being the only distinguishing factor between the messages. Not only were straight twosomes given preferential treatment over gay male partners and lesbian couples 15.9 percent and 15.6 percent of the time, respectively, the rental discrimination against homosexual couples was most prevalent in markets where bias based on sexuality is against the law.
Save the Date for the 2014 NAA Education Conference & Exposition in Denver
The largest and most anticipated industry event of the year, the NAA Education Conference & Exposition, will convene June 19-21, 2014, in Denver.
Make plans now to experience the Mile-High City like never before—with more than 6,300 attendees, over 40 education sessions, at least 350 exhibitors and surprises around every corner, the NAA Education Conference & Exposition is the must-attend event each year for any multifamily housing professional who is serious about bettering their organization’s performance and enhancing their own career. Stay tuned for the latest information.
Hyatt Executive to Keynote 2013 Apartment Revenue Management Conference
Greg Cross, Senior Vice President of Revenue Management and Pricing for Hyatt Hotel Corporation, will keynote the 2013 Apartment Revenue Management (ARM) Conference®, September 23-25 in Miami. In its third year, the ARM Conference® remains the apartment industry’s sole event dedicated to staying ahead of the ever-changing operational curve.
Interested in strategies and tactics to improve revenue generation? Are you responsible for ancillary income? You’re not alone. The ARM Conference® is the place to be for revenue managers, operations executives, marketing directors, risk managers, rental housing business intelligence experts, pricing managers, investors, asset managers and anyone else who understands (or wants to learn about) the value inherent in revenue management.
Learn more about the ARM Conference® and register today!
Be Kind, Please ‘Rewind’
Couldn’t attend the 2013 NAA Education Conference & Exposition in San Diego, or missed a great session? Don’t despair—you still can enjoy the best education sessions in the apartment industry, including video!
NAA’s Education Institute (NAAEI) is once again presenting its “Rewind” program, offering 21 recorded video sessions and 20 PowerPoint-synced audio sessions from the 2013 NAA Education Conference & Exposition—all for just $299!
Don’t Miss Your Opportunity for Year-Round Networking on NAA Connect
Can’t make it to the NAA Education Conference & Exposition this week? Don’t miss your opportunity for year-round networking and peer-to-peer education on NAA Connect—the new hub for networking and collaboration.
NAA Connect is home to eight industry-related communities for you to connect with like-minded professionals and discuss common issues and questions. Connect also features a multitude of topical libraries with ready-to-download materials to help you get things done with having to reinvent the wheel.
So what are you waiting for? Get connected today!
Supplier Success Webinar Series
NAAEI will offer the course for apartment industry supplier partners, Supplier Success, as a series of 3 webinars.
The Supplier Success course is designed to offer an overview of the apartment industry and recommends ways that suppliers can maximize partnerships with apartment owners, apartment management companies and apartment association members.
The advantage of this live webinar format is that students can participate from wherever they are, even while traveling on business. Students also have the opportunity to ask questions, share experiences and learn not only from the instructors, but from each supplier partner taking the course.
The course is available via webinar series July 16, 18 and 23 from 2 p.m. to 4 p.m.
Registration Fee: $99 for members; $129 for non-members
Group pricing available for 10 students or more, contact Shana Treger. Each webinar will be recorded in the event you miss a class.
Join NAAEI, Apartment All Stars and Multifamily Insiders for Webinar Wednesdays
Join NAAEI, Apartment All Stars and Multifamily Insiders for Webinar Wednesdays, the largest premium webinar series in the industry to provide state and local association members with access to industry thought leaders to discuss innovative ideas, best practices and emerging industry trends. These webinars will give participants the tools they need to become industry superstars in their own right.
- will cover industry trends and timely topics that benefit both on and offsite staff
- are available at a one-time or subscription price
- offer NAAEI Continuing Education Credits (CEC)
Cost: The webinar series averages two webinars per month, and for a limited time, we have discounted this subscription rate to $39.99/month, a discount of 17%.
NAAEI Designation Courses Offered Near You!
Nevada State Apartment Association
Roanoke Valley Apartment Association
Chicagoland Apartment Association
July - August, 2013
Central Iowa Apartment Alliance
September - October, 2013
Hampton Roads Apartment Council
September – October, 2013
Greater Charlotte Apartment Association
October - November, 2013
Apartment Association of Greater Los Angeles
November - December, 2013
Nevada State Apartment Association
Roanoke Valley Apartment Association
Greater Charlotte Apartment Association
Roanoke Valley Apartment Association
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.
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