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Home-Sharing is Creating Value for Multifamily Property Managers

Home-sharing is a multi-billion dollar industry that is gaining momentum with unlikely allies: multifamily property managers. Traditionally, multifamily property managers have made cash off long-term leases and rent costs and prohibited home-sharing because they violated rules and regulations. But a report from the National Multifamily Housing Council (NMHC) estimated that about 65% of recent Airbnb bookings were in multifamily buildings, including apartments, condos and even in-development hotels. It also found that 43% of property managers have had short-term rentals occur without their approval. To legitimately meet the home-sharing demand, companies are bringing their innovations to multifamily property managers. 
Apartments Doubling as Hotels

Among the operational challenges that multifamily managers encounter is what to do during dry leasing periods. Enter companies like WhyHotel and Stay Alfred that take un-leased apartments and convert them into furnished, amenitized hotel units. This pop-up hotel model has been gaining traction. Zak Schwarzman, an investor in WhyHotel, told Forbes, “It’s no surprise that companies in this category with a clear value prop are receiving a warm reception from the multifamily community. WhyHotel offers developers significant newfound revenue by managing their yet-to-be-rented inventory as short-term hospitality during a building’s lease-up period. Who would say no to that?”

Stay Alfred focuses on market rate properties, providing a more upscale, short-term hospitality experience. In addition to furnishing empty units, the company rents them and staffs the buildings.
Legitimate Short-Term Rentals

To eliminate the notion of black market short-term rentals, multifamily managers are taking a proactive approach to the leasee-turns-landlord problem. YOTELPAD in Miami became the first condo community to permit restriction-free short-term rentals. David Arditi, founding principal of Aria Development Group, the developer of YOTELPAD, told Forbes, “We’ve heard many stories of residential buildings having to deal with owners who are trying to skirt local legislation by renting out their units on a short-term basis. They are typically not allowed to do so given condominium association and zoning restrictions. We thought, why not do something that addresses this head on and gives people the option to do what they are asking for?”

Making life easier for multifamily property managers are companies like San Francisco-based Pillow, which provides the tools for property managers to control all short-term rental hosting in their buildings, as well as share in the revenue, ensure local regulatory compliance, and insure against damage.

NMHC/NAA Support

Multifamily home-sharing has the support of NMHC and the National Apartment Association, two of the most influential industry and advocacy organizations. “NMHC/NAA support the right of multifamily firms and other property owners to participate in all aspects of the sharing economy, if they so choose, and if it is done in full compliance with existing law and regulations,” according to an NMHC home-sharing fact sheet. The fact sheet emphasizes that the choice is ultimately up to multifamily property owners, but it encourages the practice as it creates additional revenue streams. “Policymakers at all levels wanting to regulate the short-term rental market should be cautious as to not inhibit the benefits of the sharing economy, while ensuring that the protection of private property rights and contractual obligations between property owners and residents are respected.”

What’s Next?

Multifamily home-sharing is more than a trend and will seemingly continue to evolve. We previously covered Airbnb’s entrée into the multifamily property manager partnership with its Niido brand, which launched its flagship property in Orlando. The program has been so successful that the company is expanding into Nashville with plans to open up to 14 more properties by 2020. This combined with the momentum of short-term rentals positions the home-sharing model to generate more cash and lower operational costs to reduced unit turnover and improved brand awareness for multifamily property managers.

How Millennials are Influencing the Multifamily Housing Market

Millennials are moving out of their parents’ houses in favor of multifamily communities. A strong economy is one factor, and Millennials are renting more than buying. This bodes well for multifamily operators who are seeing an influx of tenants to major municipalities, as well as smaller cities and suburbs. Let’s take a closer look at how Millennials are influencing the multifamily housing market.
Secondary Market Boom

“Maturing Millennials” or those around age 34 are having babies at a higher rate compared to the rest of their generation. As we’ve previously written, they are influencing the urbanization of the suburbs movement by seeking more space in markets they can afford in so-called second tier municipalities. As Building Design + Construction reports, “…while Millennials are moving out of their parents’ houses and into multifamily developments, the developments that they want are in secondary and suburban communities where they can afford larger, more affordable space. This means they’ll be looking for mixed-use suburban locations with a bit of urbanism, as well as transit-oriented developments so they can get to work in urban commercial centers.”

Specific Amenities
For those Millennials who aren’t ready to start a family, unit space goes by the wayside in exchange for top-notch amenities, especially in market rate multifamily properties. As we’ve previously covered, and according to the National Multifamily Housing Council, Millennials rank the following as the most desirable amenities: rooftop decks, outdoor kitchens, fitness centers, bike stations, yoga studios, and updated package centers.

Millennials also don’t overlook lobbies. “An active, inviting lobby is always important, as it is the first impression that the renter and his/her guests see upon entrance,” says Building Design + Construction. “The lobby should be open and situated like a lounge, evoking the feeling of an extended hangout space.”

Luxuries on a Budget

In lieu of buying a home and paying a mortgage, Millennial renters prefer to allocate those funds toward higher-end apartments offering luxuries that a starter home would not. In addition to the above amenities, these luxuries include security and concierge services, in-unit laundry and dishwashers, and conveniences such as smart controls for HVAC systems, dog parks, pet washing stations, recycling services and electric car charging stations.

Home Sharing Income

The total student loan debt in 2018 was $1.6 trillion, which has made it difficult for recent college graduates to save. With rents increasing in larger cities, Millennials are seeking side-hustle income property opportunities. Traditionally, this has been conducted by property owners, but Airbnb and certain landlords have recognized an opportunity and market for home-sharing for tenants. Niido Powered by Airbnb launched in 2018 and features rentals in Orlando and Nashville. “Rent your couch, a room, or your entire apartment to offset your rent or pay for your next trip,” according to the company website. “By using your apartment to generate extra income, we enable residents to spend their time and money the way they want, while at the same time supporting a global community of travelers and adventure seekers.”

Conclusion
As the largest living generation, Millennials know what they want, and the multifamily housing market is responding. Whether they land in the big cities or surrounding suburbs, Millennials are motivating multifamily operators to provide access, amenities, income opportunities, and modernization.

Medical Office Renovations that Focus on the Patient Experience

Unsightly building exteriors, unwelcoming, cold waiting areas, and dated examination rooms will drive patients away from your medical office properties and give them second thoughts about trusting your provider tenants. The best medical practices are centered around making the patient feel safe and relaxed, and these are achieved by the following medical office renovations that focus on the patient experience:
A More Homey Atmosphere
Patients are more comfortable when a medical office feels like their home and less like a sterile, cold facility. Pediatric practices, for example, recognize this and have renovated their waiting rooms, installing play areas for kids and tablet stations where they can play games. Modifications to lighting and the use of sofas, chairs, and side tables create a living room-style environment. In addition, providing outlets for power and USB cords allows patients to occupy themselves or get work done.

“This trend really helps increase patient satisfaction by improving comfort and mental well-being, “ says CME. “Patients in waiting rooms that are well-designed are often more patient and find average wait times more agreeable.”

Incorporating Technology

Innovative medical practices design spaces that leverage technology to improve patient satisfaction and make it easier for staff to do their jobs. Renovating offices to incorporate digital kiosks, for example, creates many advantages. Patients can check themselves in or out and make follow-up appointments, front desk staff can focus on important tasks, and congestion due to foot traffic is reduced.

All-In-One Spaces
From primary care to specialty and multi-specialty practices, consolidating services or co-locating all providers in the same space can enhance operational efficiency and patient satisfaction. Consult room remodeling is gaining a lot of traction as a way to combine exams and consultations in a more inviting setting. This concept allows for better engagement between patient and provider.

“This current landscape is in large part the result of private physicians joining group practices at large healthcare systems and institutions creating specialty clinics to maximize their service offerings and broaden their reach,” According to Healthcare Design Magazine. “And exactly what shape those efforts take is key to providers differentiating themselves among the competition.”

Appealing Outdoor Space
Making use of outdoor green areas can also create a more appealing atmosphere for patients and caretakers. Landscaping green spaces–including easily accessible areas for those confined to wheelchairs or patients that need walkers–invites patients and caretakers to relax. “These green spaces don’t need to be elaborately designed, but rather serve as a small garden setting with purposefully placed shrubs or trees to create a cozy area blocked from traffic or parking lots,” adds CME.
Staff Benefit, Too

The more functional a medical office, the better engagement and productivity are among staff. Care team members benefit from collaborative spaces, compared to dedicated physician’s offices. These onstage/offstage layouts are growing in popularity and place clinical staff in a central core and create group work areas where nurses and physicians work alongside each other.

Conclusion


In many ways, bedside manner extends beyond provider and patient interaction to the way patients feel about the environment of a medical office. Renovations that are patient-centric and cater to their comfort needs will create a winning situation for them, as well as providers, and property owners and managers.

New Package Centers are Making Life Easier for Multifamily Residents

As more multifamily properties make improvements to common areas, one space in particular is receiving quite the makeover: the package room.

Traditional package management is causing headaches for property managers. Boxes from Amazon, groceries, and other deliveries inundate front offices (UPS delivered 800 million packages during the 2018 holiday season, up 50 million from 2017. That’s not including deliveries from the USPS and other shippers.). Staff spend hours logging deliveries, and the additional time and manpower is expensive. Residents are feeling the burden by not being able to claim their packages outside of regular office hours. Additionally, there are the legal liabilities associated with lost or damaged items.

Multifamily property managers are adapting by redesigning package rooms and management systems to accommodate tenants in the following ways:

Dedicated Package Delivery Centers
The traditional mailroom is a dying breed, as apartment and condo buildings have been installing dedicated package delivery centers for the last ten years. “Such facilities have grown in number and sophistication as the flood of packages has risen, and as residents’ reliance on them has gone up exponentially,” according to Building Design + Construction.

Package management system disruptors are playing a major role. Multifamily Executive calls 2018 the “tipping point” of package-management automation. Property managers are taking advantage of the technology to reduce costs and create a more self-sufficient environment. Companies like Package Concierge and Parcel Pending allow deliveries of packages in secure lockers that are accessed using touch-screens. Residents receive text messages with PIN numbers to alert them of package-arrival, and they can retrieve them whenever they’d like. The technology is so popular that the lockers are now being used in retail and grocery locations, corporate campuses, and universities.

Access and Space
Package centers should be highly visible, easily accessible, and available 24/7 so that tenants can retrieve their deliveries on their own time.

“New Package Concierge data shows that 83% of users would prefer 24/7 access to the locker in order to increase utilization of the solution,” according to Multifamily Executive. “Installing automated lockers in common areas or near the mailroom allows residents and carriers alike easy access.”

Renovations to create more physical space for package centers is critical to accommodate self-serving systems. Packages come in all shapes and sizes; therefore, providing enough options for lockers to handle volume is key.
“Don’t limit your potential for using these systems now or in the future – especially since package volume will only continue to rise,” adds Multifamily Executive. “On average, today’s apartment buildings receive up to 50 packages a day, which increases during the holidays, so including plenty of available space to manage this volume is important.”

Creating Community Experience
If tenants are happy, so are property managers and investors. Successful multifamily properties focus on enhancing the resident experience, and designing the right package area helps foster community. Per Building Design + Construction, “Many rental and condominium communities integrate package centers into high-traffic areas. Not only does this make it easier for couriers to find the center and deliver packages, it also makes receiving a package a neighborly event. If planned and designed appropriately, package centers can strengthen community ties among residents. The inclusion of communal tables and recycling bins gives residents the option to open their packages immediately while socializing with their neighbors.”

Conclusion
Renovating package centers and investing in new technology is essential for meeting the demands of today’s delivery volume and tenant needs. The best package-management systems provide secure, 24-hour access, keep package areas neat and clean, and free up time and energy of building staff.

Restoring The Notre Dame Cathedral

“We will rebuild Notre Dame together,” pledged France’s President, Emmanuel Macron directly following the fire that caused widespread destruction to the 850-year-old gothic cathedral in April of 2019. The French and the global community appear unified in the goal to rebuild the NotreDame as $1 billion has been raised so far toward that effort. However, exactly what restoration will look like is a different story.

On May 27, the French Senate passed a bill ordering that the cathedral, which lost its iconic 90-meter spire to the fire, must be restored to exactly the way it was before. The bill also removes a clause giving the government the power to override planning, environmental and heritage protection, and public regulations, which means the Senate and National Assembly must agree on a final version before it becomes law.

How to restore the Notre Dame is the international architectural controversy du jour. We may yet see an even newer bill that will impact the final plans. More than half the French want it rebuilt as it was, with one quarter favoring a more modernist approach.

Here at Mosaic Construction, we believe that if a classic structure could be as faithfully restored as possible, then it should.

“Watching the fire unfold was significant to me,” says Andy Poticha, our Principal and CEO, who spent his honeymoon in Paris in 1991. “Visiting the Notre Dame Cathedral was one of my most memorable events. As someone trained in architecture, it was very difficult to see one of the world’s premiere monuments almost completely burn down to the ground.”

While we’re not cathedral or gothic specialists, we understand first-hand the value of restoring properties to their original form. The Notre Dame Cathedral is an architectural, historical, and cultural feat that deserves a triumphant restoration.

The Challenges Of Restoring Such a Structure

President Macron and Prime Minister Édouard Philippe want the cathedral rebuilt within five years, which critics believe is unrealistic. It’s worth noting the Herculean effort required for the full restoration, including but not limited to archaeological and forensic expertise.

“Evidence for the evolution of that building is in the physical fabric, so you’ll need an army of archaeologists all over it to better understand which parts they’re repairing and what they belong to,” says architectural historian and broadcaster, Jonathan Foyle. “The stripped roof and upper masonry will reveal aspects of the building’s history which probably haven’t been understood. Notre Dame has virtually no building records. We know (that construction) started in 1163 and was basically completed by about 1240, but there are no building accounts.”

John Burton, an architect and a surveyor of conservation, who works at Canterbury Cathedral and Westminster Abbey, predicts a painstaking forensic process of sifting through valuable debris that will require special committees to assess each of the elements, “from stained glass to gold plating. It will then be down to a master architect to bring the overall design together.”

Architect Peter Riddington, who worked on the restoration of Windsor Castle after it was damaged by fire in 1992, refers to these groups as committees of taste. “My guess is they will need to have a committee of taste to make decisions on even the most fundamental things like, what is the cathedral, once restored, going to look like,?” he adds.

Once this preliminary work is completed, the building process can begin but only by the highest level and most specialized of trades.

“A lot of people in the stone industry become sculptors … but cathedral work is very, very different,” according to Christian Frenzel, an Australian cathedral stonemason, who recently restored gargoyles at the Smyth Memorial Chapel located inside Adelaide’s West Terrace Cemetery. “Some people who have worked for 50 years as stone masons would not be allowed to do cathedral work. It is very elite…Tracery windows have to be millimetre perfect and if there are flower ornamentations on there, then that will have to be almost perfectly replicated.”

Controversy Over Modern Design

We’d be remiss if we didn’t mention that the Notre Dame experienced previous restorations. “Notre Dame is not a building that has been fossilized in time, Foyle said. “It has not remained static since the early 13th century.”

For example, it’s prominent spire was the product of a restoration in the 1800’s, made taller and more elaborate by architect Eugène Viollet-le-Duc. The same restoration included profound changes to the facade and interiors. Yet that’s hardly the same as many contemporary proposals.

In the immediate aftermath of the fire, Prime Minister Philippe announced a competition for original ideas for the cathedral, and designers flooded Instagram with their renderings. Some were outlandish, including installing a swimming pool on the cathedral’s roof.

“I believe that Notre Dame should be resorted to what it was. Period,” says Poticha. I don’t understand changing anything or making it different.”
He’s not alone.

“I think the problem is that architects want their intervention to be visible,” says Frank Matero, University of Pennsylvania architecture professor and chair of historic preservation. “They see the creative act as highly visible. But the best restoration is that which is invisible.”

Restore to Its Original Form

Though the specter of additional changes hovers over the current Senate bill, the French and preservationists writ large have spoken, and their voices are loud and clear to restore the Notre Dame to its original form.

“It still is a Gothic cathedral,” says Frenzel. “To fulfil traditional conservation and restoration guidelines, it has to be rebuilt as it was.”

The silver lining is what survived the fire. Firefighters were able to preserve the cathedral’s main structure, including the outer walls and two bell towers. Artifacts and artwork were saved as well, like the Crown of Thorns, the Blessed Sacrament, and more items.

“This is a 12th century masterpiece,” says Poticha. “I keep thinking about its historical significance.”

How Multifamily Investors are Urbanizing the Suburbs

Baby boomers and millennials have their sights set on dynamic, live, work, and play opportunities in the suburbs. In other words, the urbanization of the suburbs is here, and multifamily investors are responding in kind. In a sense, the suburban market is being turned on its head as investors create a practical transfer of urban-style features–including walkability, access to retail and restaurant amenities, and dense housing–beyond the city limits.

These factors outline how multifamily investors are urbanizing the suburbs.

Determine Your Target Tenants
If Baby Boomers and Millennials are the largest cohort making the transition to the suburbs, it’s important to focus on demographic subgroups. “Maturing” Millennials, for example, are leaving urban communities to give the suburbs a dry run before raising a family. They expect class A market features but at lower rents. Then there are “gray-collar” renters whose household income and education levels and population-growth exceed national standards.

Investors understand that you can’t fit a square peg in a round hole by trying to replicate city-living in the suburbs. “As these sub-hubs multiply across the country, what’s clear is that no single prototype will work since suburbs vary from tiny communities with a single stoplight to large ones considered small cities,” According to Multifamily Executive. “Yet, the locations most likely to thrive share the common denominator of being hybrids that borrow some parts from their lively urban counterparts and retain their bucolic and other suburban advantages.”

Proximity to Jobs and Transportation

Employment opportunities close to residents can be a strong incentive for investors when selecting one suburban site versus another. There needs to be some form of mass transit or highway network to get residents to them. Chevy Chase Lake, for example, is a mixed-use, transit-oriented community in the Maryland suburb of Chevy Chase close to Washington, D.C. with access to the Metro’s Purple Line. Just to the north in Rockville an 1,100-unit multifamily neighborhood is being developed in a 90-acre industrial park along another Metro line.

However, development is proving to be more challenging in Tysons, Virginia, an “edge city” of DC. “The grid of streets planned for Tysons exposes the challenges of transforming suburbia,” according to Public Square: A CNU Journal. “The grid is mostly internal, with few connections to surrounding subdivisions. Three highways interrupt the network. The plan now underway is a huge improvement, yet ongoing retrofit is needed, perhaps decades from now, that connects the downtown to surrounding cul-de-sacs and loop roads.”

“Placemaking, if applied thoughtfully and well executed, provides the soul for our communities through the design of a contextual urban framework of pedestrian friendly neighborhoods, open spaces and a vibrant urban environment created by the layered realm of architecture, landscaping, signage and lighting.”
Gain Buy-In From the Community
Compared to large cities, elements of multifamily renovation can be more difficult in suburban areas, including zoning and acquiring variances. Building trust with the community is an important step in choosing a community location.

Multifamily Executive emphasizes this point, using the example of a multifamily property in Richmond, Virginia: “Richmond, Va., which experienced a boom in Millennials moving downtown after 2010, is now seeing a swing back to the suburbs. Good infrastructure was already in place in Richmond’s suburban counties like Henrico County. But to attract mixed-use, multifamily living, the suburban counties recognized that traditional policies and approaches to land planning needed to adjust. Rather than create big urban-like downtown cores in various suburbs, the goal was to fashion compact, pedestrian-focused projects along existing corridors to stimulate development and rejuvenation that takes advantage of existing infrastructure.”

Locate Near Office and Retail

Retail, office, and residents need each other. The success of a neighborhood relies on the well-planned intersection of commercial and multifamily renovation. Similar to the proximity of communities to transit, everything should be close by. Tenants want to live five minutes from
from coffee bars, grocery stores, and entertainment. Finding the right balance is key, according to Multifamily Executive: “The answer for both suburbs—as well as cities, even large ones—may lie in seeking retailers that have learned the importance of experiential features that consumers seem to find more relevant rather than stacks of merchandise. Entrepreneurial leaders like Apple are rolling out ideas such as workshops and classes.”

Amenities, Amenities, Amenities

Amenities are significant considerations for multifamily living. We’ve written previously about the importance of amenity upgrades to attracting new tenants. To avoid the risk of trying too hard and unrealistically to mimic vibrant cities, investors are taking advantage of neighborhood natural amenities in their backyards, like parks, lakes, and trails. We recently renovated multiple units and hallways, as well as the package room and pool-area restrooms of a multifamily, student-centered apartment building in Evanston, an edge city of Chicago. Students also have access to the Clark Street beach and trails along Lake Michigan.

Conclusion


There is a shift afoot in which investors are attracting renters from the big cities. We’ll give the last word to Jose Sanchez, retail and mixed-use design leader at DLR Group, who told GlobeSt.com, “Demographic shifts illustrated that we are becoming a society that values main streets more than backyards. Walkability, density, sense of community, mixed uses and a diverse population are bringing new life to the suburbs. Placemaking, if applied thoughtfully and well executed, provides the soul for our communities through the design of a contextual urban framework of pedestrian friendly neighborhoods, open spaces and a vibrant urban environment created by the layered realm of architecture, landscaping, signage and lighting. It is also vital to understand that these new town centers should be developed in a way to attract multiple demographics and economic classes through inclusive design and programming.”

Real Estate Investing for Cash Flow – Kevin Bupp Podcast with Ira Singer

 

Expanding a Successful Construction Company from the Culture Up – with Ira Singer

Speaker 1: You’ve been searching for the best way to generate passive income in your life, and heard that real estate is a great way to do it. But you’re tired of all the so-called gurus, who are all talk and no substance. Get ready to celebrate because Kevin Bupp has spent 14 years successfully making it happen.

This is the Real Estate Investing for Cash Flow podcast. Now, here’s Kevin Bupp.

Kevin Bupp: Hey, guys. Kevin Bupp here. I want to welcome you to another episode of the Real Estate Investing for Cash Flow podcast. Our mission is to help you build and maintain massive amounts of cash flow through income-producing real estate investments. Now, our guest for this week’s show is real estate investment and construction expert, Ira Singer. Ira has been a principal of Mosaic Construction since 2005 and currently leads new business development, estimating, construction production, project management, and the management of trade partner and vendor relationships for Mosaic Construction.

Kevin Bupp: Guys, now, without further ado, I’d like to welcome our guest for today’s show, Ira Singer. Ira, how are you doing today my friend?

Ira Singer: Kevin, doing great. Thank you. Appreciate time on the phone and the introduction, so I’m looking forward to the conversation.

Kevin Bupp: Yeah. Looking forward to having you here. You bring a breath of knowledge and experience on the construction trade to this call, which is … Your expertise is one that we haven’t necessarily had on the show before. It’s interesting because we’re going to take it from a little bit of a different angle today. We interview many different investors that specialize in different types of asset types. We’ve had, I don’t know, probably 100 multifamily guys on the show over the years. We’ve had retail guys, office guys, student housing guys, senior housing guys on the show, and gals. I shouldn’t just say guys. Guys and gals that are in the investment side of the space.

Kevin Bupp: Well, those folks are basically your clients. They hire your team, your construction firm, which is on a national scale, to help them with their projects. Whether it be rent large scale renovation projects, new builds and probably everything in between. Real excited to take it from this perspective and dive into your business and what it is you guys do over there at Mosaic. But before we do, Ira, maybe if you could take a few minutes. I gave you a very brief introduction. Your background’s much more extensive than that. Take a few minutes and tell our listeners a little bit more about yourself and really how you got started in this business.

Ira Singer: I’d be happy to. All of those different asset class owners are potential clients for Mosaic Construction. We’ve had a breadth of experience that didn’t start that way.

Ira Singer: I was in the window business, straight out of school in 1990. In 1993, I started my first window, siding, roofing company that was catering to homeowners. Was successful at that, had a partner in that. Learned trade by residential work. Going in and picking up clients one at a time. That led to some business introductions of real estate owners. A couple of years into business we were working on multifamily construction doing window replacements on a large scale basis, 300, 500, 600 windows, either vinyl or aluminum.

Ira Singer: That, of course, continued into interior renovation work because while we’re there, a trusted contractor, which is an important component of an investment in real estate, to have a trusted GC. They ask the question. They’re happy with our window work, so we got started on doing all kinds of different makeovers, and all kinds of different multifamily projects. Whether it was senior housing, and it was in units, or whether it was market rate apartments in with amenity spaces, or common area spaces. The senior housing market is all about safety and accessibility. There’s all kinds of different value adds and different projects that we’ve been involved in.

Continue reading “Real Estate Investing for Cash Flow – Kevin Bupp Podcast with Ira Singer”

Keys to a Successful Office Renovation

Property owners and tenants seeking office renovations want to improve the look, feel, and functionality of their buildings. After all, your office is a reflection of your business, and the right renovations can have a direct impact on your bottom line. The proper design-build company will apply the following keys to a successful office renovation:

Create a Clear Renovation Strategy
Renovations should be carefully planned in order to maximize the return on investment as well as the long-term success of the business. The first step is to lay out the estimated renovation budget. Include the expenses of development, required materials, new furnishings, work, and so on, as well as a reserve budget for any unexpected costs.

Renovation with minimal disruption is key, which is why you’ll need a solid communication plan. Inform current tenants on the work schedule so they’ll know how to best manage employees during the renovation. Teem recommends the following approach: ”Do you have vacant areas or swing spaces you can put them in? If not, you’ll need to find some. In terms of office renovation design, keep in mind the current number of employees, future growth, technology, functionality, how employees prefer to work, and office design trends.”

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The idea of an office renovation is exciting for any business. It implies a new beginning, a renewed character, and a refreshed style.

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Assess the Building’s Strengths
You may find that you can capitalize on the building’s existing features. An office with good bones can be preserved or fortified. At the same time, systems and features may require updating. According to Building Design + Construction, “If mechanical units, system controls, and lobby lighting have recently been replaced or updated, investigate the possibility of seeking an Energy Star rating, which signifies that the building’s energy consumption is below the standard for buildings of its type and size. This tells potential occupants or tenants they can expect generally lower utility expenses than in a conventional building.”

Improve Curb Appeal and Entrances
First impressions are everything, and they inspire property-owner and tenant confidence alike. Investing in landscaping, new exterior paint, updated concrete work, and entranceways creates value and a more inviting atmosphere. There should be continuity when entering the lobby or reception area of an office, as this space serves as the face of your property and should accurately depict a tenant’s company-brand and culture.

Plan for Sustainability
Create a plan for sustainability that considers space and energy-consumption and the lifecycle of materials. Examples include, energy-efficient HVAC units, durable furnishings and finishes, and creating multi-functional spaces. As buildings.com states, “Ideally designers renovating a workplace with sustainability in mind will aim to excel in all three of these areas, and in doing so will provide a functional workplace that will meet the needs of employees for years to come without any unnecessary reconfigurations.”

 

Research Financial Incentives
For contractors, it’s a good faith gesture and certainly good for business to discover and pass along any savings you can to your clients. Second generation buildings can have the benefit of being offered local tax or financial incentives. In addition, enterprise zones may offer concessions, infrastructure incentives, and reduced regulations.

Conclusion
The idea of an office renovation is exciting for any business. It implies a new beginning, a renewed character, and a refreshed style. A carefully planned approach is critical to the success of any office renovation. While it’s understandable to want to get the job done quickly, it’s important to allow the process to run its course. Building Design + Construction adds, “Don’t try to do everything at once. Consider a multi-step, phased redesign, rather than tackling the entire property at once. A phased plan provides flexibility in cash flow and financing and greater variety in lease agreements, which can reduce financial risk to the owner or developer.”

Apartment Building Upgrades that Increase Value

The multifamily housing market has been growing steadily in recent years. According to Housing Wire, sales increased by 44% in 2018, accounting for 31% of the total U.S. real estate investment sales. A primary factor is that apartment building owners and managers recognize that they can increase value by upgrading and renovating functionality and the overall aesthetic appeal of common areas, amenity spaces, and unit rooms.

 

Common Areas
Particularly in urban areas, Building Design and Construction says apartment sizes are shrinking while common areas are expanding. Tenants, especially Millennials, are willing to sacrifice living space for larger common areas that provide functional spaces for social activities and ad hoc work environments. Buildings are equipping common areas with more robust technology like USB ports, reliable WiFi connections, iCafes, and other web-access. Common areas are also being renovated with more durable furniture and flooring to handle increased usage.

 

 

Amenity Spaces
The National Apartment Association’s Adding Value in the Age of Amenities Wars report notes that rooftop decks are the most valued outdoor amenity. In mid and high-rise buildings, rooftop decks and terraces are in high-demand with desired features like outdoor kitchens, grills, sound systems, big-screen televisions, and comfortable seating. The report also reveals that fitness centers rank at the top of the list for community-wide amenities. Fitness centers have evolved in only the past few years from workout rooms to including space for classes like yoga, resistance training, and wellness.

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Multifamily housing sales increased by 44% in 2018, accounting for 31% of the total U.S. real estate investment sales.

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Building owners are accommodating the needs of bike and pet-owners, as well. The high cost of parking spaces means more bike-usage, and multifamily owners have responded by providing bike stations for parking, storage, and in some cases, parts and repairs. Pet-owners represent a large demographic of residents, and they expect amenities such as grooming, sitting and walking services, parks, and sometimes spas. “Many apartment communities today are going above and beyond for their residents and pets by offering awesome accommodations,” according to Apartments.com.

 

Kitchens
Kitchens renovated for style and functionality are a value-add for multifamily living. Kitchens are trending toward incorporating mixed materials like wood, metal, stone, and glass. In larger units, multifunctional islands are used for dining, entertaining, and workspaces. Additionally, multi-use countertops feature butcher blocks, wireless charging areas, and food scales.

 

Conclusion
If the upward trends hold, and as municipalities continue to swell in population, multifamily housing construction must keep pace with demand. Building owners and managers will gain a competitive advantage and realize better return on their investment by creating the upgrades that attract prospective tenants.

Read more about How to Attract Tenants With Your Lobby Design.

Heat Your Building While Saving Energy With These Strategies

As winter advances, hitting some areas with polar vortexes, it’s important to ensure that your building systems are producing the right amount of heated air. While space-heating is a large expense, building owners, facility operators, and managers can uphold occupant comfort and health while consuming energy efficiently.

Maintain Consistent Temperatures

Building temperature variations can cause health and financial issues. It’s uncomfortable for occupants to move back and forth between warm and cold spaces. Leaving a heated office for a cold restroom, for example, is unhealthy, and research shows that productivity drops when work space temperatures fall outside the thermal comfort zone of 69 to 73 degrees Fahrenheit. Additionally, temperature swings and uneven distribution of heat–caused by dividers, furniture, walls, and other obstructions–also waste energy and increases utility costs.

Use Programmable Thermostats

Using a programmable thermostat can conserve energy while keeping your building comfortably heated. You have the option to adjust the times you turn on the heating, following a pre-set schedule. You can program these thermostats to store and repeat multiple daily settings, which you can manually override without impacting the set schedule.

Insulate Heated Air

Heat will find the smallest places to escape. Therefore, to help retain your building’s heat and achieve better HVAC energy  efficiency, it’s a best practice to trap in all the heated air. Add insulation to walls and windows, and wrap pipes, ducts, and outlets in insulation as well to preserve energy.

Detect Heat-Loss

Targeting heat-loss with diagnostics is critical and economical. Utilizing infrared thermography identifies causes and sources of heat-loss, such as cold air leaking through windows or doors, walls and roofs, and gaps around building envelope openings, including pipe penetrations, and HVAC ductwork. Infrared thermography can also detect water leaks, moisture intrusion, and construction defects.

Energy efficiency does not have to come at the expense of occupant health, comfort, and productivity. Applying any of these tips will make a difference, but taken together, you can achieve optimal building performance regardless of weather conditions.