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14C — September 29 - October 12, 2017 — Fall Preview — M id A tlantic
Real Estate Journal
M ultifamily
By Sean Organ, Morgan Properties Multifamily trends to watch for in 2018
A
s we near the fourth quarter of 2017, apart- ment owners are fo-
will never go out of style for apartment owners. For Class B owners/operators in par- ticular, entering high barrier to entry markets where value can be added for both residents and investors will continue to take precedence. We’re bullish on Baltimore and the greater DC metro market, which encompasses histori- cally untapped areas such as Alexandria, Virginia. Other East Coast markets includ- ing Philadelphia and North and South Jersey will remain hotspots for multifamily devel- opment as well, outside of the
New York market. As apartment owners look for the best return on invest- ment when growing in these markets and making major purchase decisions, enhanc- ing interiors in simple but efficient ways and adding amenities will trend. This allows owners to raise rents without excluding current and prospective residents who are looking for some- thing affordable, not luxury. For interiors, this means a shift towards upgraded bath- room, kitchen, and common areas. On the amenity side,
owners will prioritize in-unit full-size washers and dryers, on-site parking, and making accommodations for pets. Renter convenience will also takemore of a priority, as proximity to central locations and access to public transpor- tation becomes increasingly more important for today’s renter. In fact, multifamily owners/operators will find ways to incorporate mixed- uses, such as shopping and dining, into their apartment communities so that renters can get the all-in-one expe- rience. Morgan Properties’
recent acquisition included a retail component, which will surely attract renters and in turn, help boost traffic for the retailers. More isn’t always better While interest rates are at an all-time low and expected to stay low in 2018, creating an opportune time in mul- tifamily development, more isn’t always better when it comes to managing indi- vidual apartment portfolios. In 2018, apartment owners will evaluate quality, in ad- dition to quantity, to gain more control over their as- sets. Take for example our re- cently acquired Mark Center portfolio, which consisted of six separate apartment com- munities. For us to maximize operational efficiencies, we decided to consolidate the properties into four larger apartment communities. This is a trend we can expect others to follow next year as owners/operators look for ways to cut costs and best allocate resources. A focus on digital Roughly 77 percent of Americans own a smart- phone and nearly 69 percent use social media platforms. Heading into 2018, apart- ment owners will get savvier in their web presence, digital access for residents, social media, andmarketing efforts. Apartment communities are already experimenting with tools such as Snapchat geo- filters and Twitter hashtags to help promote themselves. At Morgan Properties, we’re undergoing a rebranding to make our digital presence more modern and stream- lined, and will incorporate visual elements like videos to help elevate our “Experience More with Morgan” tagline. With a busy 2017 for Mor- gan Properties and other owners/operators across the Mid-Atlantic coming to a close, undoubtedly anoth- er active year lies ahead for multifamily. With these trends in mind, are you pre- pared to kick off 2018? Sean Organ is the area vice president at Morgan Properties, the 25th larg- est apartment owner in the U.S. with 139 apart- ment communities and over 40,000 units located in 10 states, primarily in the Mid-Atlantic and Northeast Region. n
cusing their a t t e n t i o n on ways to get ahead of the competi- tion for the u p c o m i n g year. Here are some of the industry
Sean Organ
trends we can expect to domi- nate the multifamily market in 2018. Adding value where it counts Adding value is a trend that
MORE REASONS TO CALL MID-ATLANTIC HOME
EXPERIENCE MORE WITH MORGAN
COMMITTED TO EXCEPTIONAL SERVICE FOR OUR RESIDENTS AND COMMUNITIES. TOP-AWARDED REAL ESTATE DEVELOPER WITH 139 PROPERTIES IN 10 STATES. 25TH LARGEST MULTI-FAMILY RESIDENTIAL LIVING COMPANY IN THE USA.
FOR MORE INFORMATION PLEASE VISIT: mo rganp rope r t i e s . com
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