Panelist Andrew Livingstone, executive managing director of Greystar Real Estate Partners LLC, is in 40-plus of the 50 states and has seen a decent rent growth in urban properties. However, he noted that it isn't as much growth as in the company's suburban properties.

When asked if the strength of the B market is because everyone got outpriced in the A, Livingstone said that there are so many dynamics going on.

“Clearly there are affordability issues on those communities and if you don't have really good demographics,” Livingstone said. “What we find is that the demographic information in the seller's reports usually aren't completely accurate or thorough…You have to have the correct demographics and figure out if you can drive with the existing resident base.”

When Wilder asked how to manage things once rent growth slows and you still have to hit the bottom line, Zettl said he takes a multi-faceted approach and having a vertical platform helps. “We start identifying those properties that might have issues right away to get those stabilized or at least moving in the right direction,” he said. “We are also trying to get a bit more innovative and created in our approach to managing these assets.”

For Livingstone, the focus is immediately on the onsite team that his firm has. “With so many different owners, you have some that are in one bucket where their initial reaction is to slash costs as fast as they can, and they look at the onsite team and ask if they need that extra leasing person or if there is a vacant position, do they need it filled. That isn't how we handle it.”

He continues that, right out of the gate, his firm makes sure the onsite team are focused on task to keep people coming in the door and make sure they are aligned and completely motivated. “In a market where you get a lot of new lease-ups online and with competitors offering huge packages, we really want to make sure they are in for the challenge and aligned in the outcome and success and they benefit from it as well.”

Then, they look at marketing and if they are really in touch with what the demographic is looking for. “We survey our residents for satisfaction and surprisingly, it is something many owners don't do. We turned that on in every one of our assets to really keep in touch, and really know how our residents are doing,” he said. “We want to keep in touch with them and understand what are the things they are looking for today and what amenities to they value.”

For Comer, his company focuses on best practices in all of its managers and applies those practices across the board. “It isn't always easy and it isn't always transferable,” he said. “But that is what we focus on.”

Comer continued that his company is also moving more toward the hospitality industry in how it approaches its properties. “We are also using procurement companies to get us the best possible prices.”

As for what Comer is doing differently now? “We are more focused on valuations where we are seeing rent declines because it affects taxes,” he explained.

Keep checking back with GlobeSt.com for more from the NMHC event.

Several economic factors have resulted in net positives for the multifamily sector and prices in core markets are at an all-time high. But just how long can the market continue on this trajectory? Join us at RealShare Apartments East on Feb. 28 and March 1 for insights on succeeding in the right markets as well as navigating and finding opportunities in the more challenging ones. Learn more.

SAN DIEGO—Interest rates are rising, rent growth is slowing and you bought a property recently. So how do you achieve the pro forma returns you thought you were going to get?

A panel of experts at Tuesday's 2017 NMHC Apartment Strategies Outlook Conference tackled that question and provided insights into how to shift from a top-line rent growth focus to one that maximizes efficiency and asset management to drive bottom-line returns. (For previous coverage on the conference, click here.)

Moderator Scott Wilder, EVP of Lincoln Property Co., first asked panelists on the maximize returns panel what they are looking at in 2017, and the consensus was more of the same. Wayne Comer, managing director of JP Morgan Asset Management, still likes urban and transit oriented properties. And Mark Zettl, COO of Waterton, still plans to be a “sharpshooter” in the firm's target market.

“We are seeing some heavier lifting deals than previously,” Zettl said. “But we are also net sellers and we have sold a significant amount of our portfolio and we are going to continue to do that.”

Panelist Andrew Livingstone, executive managing director of Greystar Real Estate Partners LLC, is in 40-plus of the 50 states and has seen a decent rent growth in urban properties. However, he noted that it isn't as much growth as in the company's suburban properties.

When asked if the strength of the B market is because everyone got outpriced in the A, Livingstone said that there are so many dynamics going on.

“Clearly there are affordability issues on those communities and if you don't have really good demographics,” Livingstone said. “What we find is that the demographic information in the seller's reports usually aren't completely accurate or thorough…You have to have the correct demographics and figure out if you can drive with the existing resident base.”

When Wilder asked how to manage things once rent growth slows and you still have to hit the bottom line, Zettl said he takes a multi-faceted approach and having a vertical platform helps. “We start identifying those properties that might have issues right away to get those stabilized or at least moving in the right direction,” he said. “We are also trying to get a bit more innovative and created in our approach to managing these assets.”

For Livingstone, the focus is immediately on the onsite team that his firm has. “With so many different owners, you have some that are in one bucket where their initial reaction is to slash costs as fast as they can, and they look at the onsite team and ask if they need that extra leasing person or if there is a vacant position, do they need it filled. That isn't how we handle it.”

He continues that, right out of the gate, his firm makes sure the onsite team are focused on task to keep people coming in the door and make sure they are aligned and completely motivated. “In a market where you get a lot of new lease-ups online and with competitors offering huge packages, we really want to make sure they are in for the challenge and aligned in the outcome and success and they benefit from it as well.”

Then, they look at marketing and if they are really in touch with what the demographic is looking for. “We survey our residents for satisfaction and surprisingly, it is something many owners don't do. We turned that on in every one of our assets to really keep in touch, and really know how our residents are doing,” he said. “We want to keep in touch with them and understand what are the things they are looking for today and what amenities to they value.”

For Comer, his company focuses on best practices in all of its managers and applies those practices across the board. “It isn't always easy and it isn't always transferable,” he said. “But that is what we focus on.”

Comer continued that his company is also moving more toward the hospitality industry in how it approaches its properties. “We are also using procurement companies to get us the best possible prices.”

As for what Comer is doing differently now? “We are more focused on valuations where we are seeing rent declines because it affects taxes,” he explained.

Keep checking back with GlobeSt.com for more from the NMHC event.

Several economic factors have resulted in net positives for the multifamily sector and prices in core markets are at an all-time high. But just how long can the market continue on this trajectory? Join us at RealShare Apartments East on Feb. 28 and March 1 for insights on succeeding in the right markets as well as navigating and finding opportunities in the more challenging ones. Learn more.