This cycle, most developers in most markets are focusing the majority of their attention on Class A properties. Rents have been climbing precipitously in recent years, but new developments come on line frequently, giving renters more options on where to spend their money.
On the final morning of the 2016 Multifamily Executive Conference, Justin Alanis, co-founder and CEO of Rentlytics, moderated a session in which a panelist of industry professionals shared their tips and experiences with regard to turning a profit in the crowded Class A space.
CEO of LYND Mike Lynd detailed a few of his company’s projects and was adamant about having green features and amenities in order to retain millennial renters. But being as some of his properties are expensive to live in, most millennials can't afford their rents, which means older generations typically make up most of the population.
Regardless of which generation ends up in a high-end apartment, the luxury renter in general is looking for several features, said Andrea Humanic, assistant director of VG Preferred, including home-office capability and pet-friendly environments.
Christina Lee, vice president at Trammell Crow, spoke of the amenities arms race that’s been taking place in recent years and shared how her company sets its properties apart in crowded markets. Becoming an active part of the community by hosting events and offering tenant promotions goes a long way in attracting and retaining renters, she noted.