Wermers: At present, most apartment developers are focused on high-density wood frame. Also, Millennials, Boomers and empty-nesters are driving the demand for luxury housing. As a developer, we are in the midst of an “amenities arms race” where it is almost a requirement to offer residents the latest and most-innovative, hotel-type amenities. For San Diego residents, this also includes pet-friendly facilities. Bottom line: the market's lifestyle options will dictate how amenities are planned and provided for each development.

GlobeSt.com: How does multifamily development in San Diego County compare to that of other Southern California markets?

Wermers: There are distinct market features unique to San Diego that influence the local apartment market. San Diego has a sizeable military market and relies on key business industries: biotechnology and healthcare, military and defense industries, tourism, trade and cargo, food and beverage. Unique to San Diego's urban planning is the City of Villages concept, which allows for community involvement in planning and developing our projects. San Diego is also unique because of its proximity to Mexico, which provides tremendous development opportunities for both sides of the border.

GlobeSt.com: What else should our readers know about eh San Diego multifamily development market?

Wermers: Presently, San Diego's growth and demographic shifts lead us to believe that we will continue to see elevated rents and low vacancy rates. Over the long run, we also feel there will be an increase in adaptive re-use in areas that are underutilized and will be re-zoned. For example, our project Pacific Highlands Ranch at Carmel Valley maximizes the new urban planning gin high-barrier-to entry markets, creating an “urban node” in an area that was once seen as suburban. Fundamentally, we believe that the development process is constantly evolving year to year. As a company, Wermers always looks to the horizon to see what obstacles and opportunities lie ahead.