CREJ

Page 2 — Multifamily Properties Quarterly — November 2018 www.crej.com Letter from the Editor S taffing is becoming a big- ger problem for multifamily properties across the state, panelists repeatedly told the audience at the Colorado Real Estate Journal fall multifamily confer- ence in October. The problem is requiring owners and management to get creative to woo and keep good employees. One investment panelist said his team regularly reviews salaries to make sure they’re competitive, others said they are offering incen- tives and bonuses. Another said his team has even offered relocation packages to employ- ees interested in moving from other states to assets here in Colorado. Part of the prob- lem lies in the fact that the role of a leasing associate is changing. Today, many potential renters already have looked at a property online before visiting, so their main priorities for on-site visits are changing – meaning knowledgeable staff and excellent cus- tomer service are more critical than ever. As one panelist put it, the role is shifting to a leasing facilitator who helps make the move-in process as painless as possible. As more money is spent to train these employees to meet these expectations, it should not be surprising that some multifam- ily sellers are starting to protect their staff by requiring that they stay with the company when an asset sells. While exceptional customer service is an important leasing component, other amenities certainly help, too. For new and value-add properties alike, package lockers are king. They seem to top the list of must-have amenities these days. Community benefits also are helpful for leasing. Examples pan- elists mentioned included clubhouses with dedicated coworking areas that feature all the bells and whistles; licensed bartenders who serve beer or wine to residents to create a good clubhouse atmosphere; pet-friendly amenities, such as pet runs and dog parks; and the incorporation of local art throughout a property. Technology-based amenities – key- less entry, programming with the leasing office, smart home features, etc. – are growing in demand as well. On Page 25, Kim Duty outlines tips for implementing some of these new fea- tures while taking into account some of the associated risks that come along with it. But technological advances aren’t just for the renter. There are groups using big data to correlate a variety of things with rent growth and site potential, another panelist told the conference attendees. For example, you can examine data on the number of grocery stores within a mile, the distance to high-end restaurants, the number of coffee shops or gas sta- tions, or evenYelp reviews of retailers in the neighborhood. In theory, all of this data can help determine the ideal demographics for a property, if you can make sense of it. Michelle Z. Askeland maskeland@crej.com 303-623-1148, Ext. 104 Staffing as an amenity Contents 4 6 8 10 12 14 16 18 20 22 24 25 26 29-42 Plain and simple: Colorado needs more housing Nancy Burke End-of-year recap of metro apartment market Boomer Beatty and Peter Standley The sustainability of growth for Denver apartments Joshua Manning Colorado Springs: Continued market strength Tatiana Bailey, Doug Carter and Cary Bruteig Northern Colo. builds on success of past few years Jake Hallauer Cap rates vs. interest rates: Should anyone care? Mike McKenzie Despite anticipation, condo growth is stagnant Catherine Hildreth and Jonathan Pray A Q&A about the Denver multifamily market Craig Ratterman New supply provides some relief for Denver renters David Pierce Strong economic, population growth continues Ryan Floyd and Scott Whitfield Denver renters choose affordability over location Philip Martin Opportunities and risks for smart communities Kim Duty Denver residents continue to embrace tiny living Jodi L. Kopke Affordable Housing Spotlight