One size does not fit all when it comes to multifamily development, especially with variations in geography and demographics. The Mark-Taylor Companies Executive Vice President Chris Brozina will lead a discussion on the latest news and impactful trends in the multifamily sector at Commercial Real Estate Conference 2016, Sept. 26-28 in Scottsdale, Arizona. We caught up with Brozina for a look at what to expect from this multidimensional session.
NAIOP: What types of multifamily buildings are proving most popular for developers, and does this vary geographically?
Brozina: Geography is the single most important factor influencing product type, both nationally and within metro areas. There has been a profound shift toward high-rise, mid-rise or generally dense development since 2011, as data in many markets has indicated that mixed-use and highly convenient locations are a driving force in attracting residents. Drawing conclusions about the permanency of this shift is a key focus of our industry.
NAIOP: What is the impact of current generational demographics on multifamily trends?
Brozina: In regards to demand, the most publicized generation by far has been the millennials, and for good reason, but the 55+ generation should also continue to create significant demand going forward. This scenario prompts questions such as: “Are these two groups on the opposite ends of the age spectrum attracted to fundamentally different product? Is there any overlap? Is there such a thing as universally attractive product?”
NAIOP: What considerations should investors keep in mind for the multifamily sector?
Brozina: Outside of the industry, there’s a misconception that all multifamily generally operates the same way regardless of product type. That’s far from the truth. The divergence in product type post-recession has brought along variation in development costs and operating metrics as well. Shrewd investors will spend considerable effort identifying the appropriate product type to match the demographic fundamentals of a given location.
Join Brozina and other commercial real estate thought leaders for fascinating insights on this topic and more at Commercial Real Estate Conference 2016, September 26-28, in Scottsdale, Arizona. Visit the conference website for the full agenda, and get a preview of the innovative development projects on the pre-conference tours.
Marie Ruff is Communications Senior Manager at NAIOP.