How Adaptable Multifamily Owners Thrive
During a View from the Top panel at the GlobeSt. Multifamily Conference on Monday, multifamily owners talk about challenges in remaining profitable today and the importance of flexibility.
LOS ANGELES– Multifamily owners today have encountered unprecedented challenges in recent years, yet they remain adaptable, profitable, and poised to react swiftly to ongoing disruptions. This was the consensus among the panelists during the “View From the Top” discussion at the GlobeSt. Multifamily Fall Conference on Monday.
Angela Kralovec, GVP Asset Management of Essex Property Trust, discussed the company’s approach to reinvestment and opportunities, stating, “We are exploring strategies to increase property density and potentially add ADUs to our properties.”
Noah Hochman, Co-Chief Investment Officer and Head of Capital Markets at TruAmerica Multifamily, highlighted a key perspective on the current national landscape, noting that rent growth has been slow and decelerating in many markets. He emphasized the importance of a strategic renovation approach, saying, “We are no longer renovating for the sake of renovating.”
In some markets, he added, “we have scaled back renovations and put them on hold. Instead of completing 10 renovations per month, we now focus on three or four, primarily on units in poor condition. The key is avoiding over-renovation. Today, we are more thoughtful about property turnovers.”
According to panelist Jeff Gleiberman, President of MG Properties, their company is revising its strategy for value-add properties. “Some of the newer properties we’ve acquired have performed better than those undergoing value-add renovations.”
Larry Scott, Senior Vice President of Development at Fairfield Residential, pointed out supply chain challenges related to appliances and insurance as significant issues in the current landscape.
Kralovec emphasized Essex’s commitment to tenant retention, stating, “We are striving to strike a balance between maximizing rent increases and fairness within the context of the market, rather than pushing for the highest possible increases.”
Scott also noted retention being an issue in some markets with supply coming in but it is fairly limited.
Check back with GlobeSt.com for more coverage of the Multifamily Fall Conference.