Investors and developers in the multifamily industry understand the importance of analyzing every aspect of a new potential investment or development opportunity. In order to be successful in this highly competitive market, industry leaders have to consider dozens of various factors when building their portfolio. While these factors may vary slightly from professional to professional depending on their individual needs and goals, many of these aspects remain relatively consistent across all markets. Here are our top three factors investors and developers should consider when deciding to invest in or develop a new community:
City Center or Rural Area
Whether you are a developer or looking to invest in a community, location is a major factor when looking to develop your portfolio further. However, finding a prime location no longer means simply being in the hub of a city. Often times, many prospective residents are searching for a place that isn’t too far from the excitement of it all, but far enough away that they can get a break from the traffic, nightlife and noise. Prospective residents are often looking for a community that offers easy access to the major freeways so they can explore the surrounding areas with ease. For communities that aren’t near the buzz of the city, prospective residents value the ability to have quality dining, shopping and entertainment nearby so they can enjoy the same qualities of a downtown area without having to actually live near the city. Our community, The Residences on High Street, is located right by a variety of popular restaurants, shops and venues so residents can experience the same feel of city-life.
Residents and prospective residents expect top-notch amenities from their community. With an abundance of competition and the amenities arms race, not only do multifamily communities need to perfect the basics, such as pools and fitness centers, they also need to think outside of the box and make sure they have enough property/land to implement these amazing amenities. Currently, a major trend for residents includes pet-friendly amenities. This can include pet parlours and dog parks, if you have enough land. One of our P.B. Bell communities, Arista at Ocotillo, offers both a Pampered Pooches Pet Wash, as well as a Paws Playground Dog Park. These amenities help residents enjoy a comfortable apartment lifestyle along with their beloved pets.
With online shopping continuing to grow in popularity, another major amenity that is becoming a norm across the multifamily market is parcel lockers. Several of our P.B. Bell communities include this amenity, including Noria Robson. This addition to the community helps to keep residents’ packages organized and accounted for.
Projected Growth of the Market
On top of the other factors, it’s important to evaluate the projected growth of the multifamily market within each city when considering growing your portfolio. The Valley continues to be an appealing location for families and individuals to settle down. Phoenix is even leading the nation in rent growth going into 2020. Investing in existing communities or building in the Valley will have greater success compared to expanding your multifamily portfolio in other cities or states that are struggling to fill apartments.
Whether you are looking to invest in a community or start fresh and develop, there are a number of factors that will impact the overall success of your multifamily community. Before making deals or breaking ground, it’s imperative to carefully evaluate all of these aspects in order to create and maintain prosperous communities.
Are you ready to take the plunge, expand your investment portfolio and hire an experienced property management team to manage the community? Check out our services and give us a call today at (480) 951-2222.