Sell for More News is a weekly blog series with interesting information from the world of commercial real estate.
This year millennials are expected to drive some of the most noticeable shifts we’ve seen in the apartment industry in quite some time. This group of Americans between the ages of 23 and 38 has some of the biggest spending power in America.
Here are four apartment trends to watch:
Developers are finding that they can get more revenue for the same general construction cost by fitting more rental units into a building. They do it by clustering them in a “co-living” configuration around shared spaces like kitchens and dining rooms. (It should be noted that residents don’t want to share bathrooms)
Co-living could present a viable way to get more relatively affordable housing units into otherwise too costly markets.
We even foresee “buildings within buildings” with various tiers of co-living units, luxury units and other types of apartments geared to young professionals, all in the same property.
Apps that allows residents to schedule maintenance. Amazon package delivery lockers. App-based concierge services where residents can get help with grocery shopping, dry-cleaning trips and package pickups. You get the idea.
Concierge services almost feels like every resident has an executive assistant which really resonates with many people.
Apartments are increasingly being planned as part of walkable mixed-use developments. Look for ground floor retail to include services residents want like coffee shops, yogurt/smoothie places, quick-service eateries, gourmet grocers, a fitness studio, or a useful service business such as a dry cleaner.
Keep in mind, many cities require ground-floor retail for apartment project approval. Those spaces can sit empty for a while because retail tenants usually want the residents in place first before they’ll commit to opening a location in a new building. So this is easier said than done.
Millennial Demand Continues
Unemployment among young adults age 20 to 34 fell to a 48-year low of 4.5% in 2018. Two-thirds of this millennial group lives in rental housing, and that contingent will continue to be a big driver of apartment demand, as long as the strong job market continues to allow those young consumers to move out of their parents’ homes.
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About Beau Beach, CCIM
Beau is a tenacious Commercial Real Estate Broker, author and adoring father of four. His clients appreciate his no-nonsense demeanor and his legendary work ethic.
Beau leads Prowess IRES which is a commercial real estate broker for sellers in the Nashville, Milwaukee, South Florida and Chicago markets.
He’s the author of the books The 3 Reasons: Why Most Commercial Properties Don’t Sell and True Wealth: What Every Seller Should Know About 1031 Exchanges.
Beau can be reached at 414.324.4938, 615.603.9770, click to schedule a call or Beau@ProwessIRES.com