Pub. 3 2018 Issue 6

14 www.ctaahq.org what’s going to be ultimately done with that space. John Jeter, Post Investment Group, SVP Asset management, says being choosy about what amenities require “hard construction” and focusing on spaces that can be easily refitted is a more prudent approach. He suggested a basic space uti- lization plan that provides leasable space to service providers rather than invest in equipment for something like do-it-your- self bike repairs or doggie grooming. A repair technician would lease the area, bring in his equipment and fix bikes for residents for a fee. The property gets a little extra rent, the repair tech builds a clientele and the residents utilize a service without having to leave the property. “I’ve made it more convenient for my resident to walk to his bike and get it worked on and develop a relationship,” Jeter said. “Two years from now it might be some- thing totally different.” Forecasting Two or Three Years Out For What Space Looks Like Williams, however, said making a case for a need when it really hasn’t fully devel- oped takes a lot of work. Three years ago, when home food delivering was starting to sprout, she wanted to invest in cold storage lockers. She worked on a plan for a large refrigerator that could store delivered food and be picked up by residents, similar to the package locker craze that took the industry by storm around the same time. “I recommended getting a room with a commercial-grade refrigerator,” she said. “I was visionary at the time wondering what we were going to do, now there’s all these products that do that, so we’ve been able to adjust. But it’s taking those ame- nities that we’ve been planning for these communities that are being developed two or three years from now, trying to fore- cast, but it really has to be these flexible spaces that can evolve.” One of CF Real Estate Services’ most suc- cessful amenities of late is utilizing small spaces for co-sharing of office space – one and two-person offices that can be leased monthly to residents. The rooms are about 10-feet by 10-feet and offer a place for res- idents quietly work remotely all day or for a few hours. Singles rent for $275 a month for two-person spaces $375. Hatfield said spaces are booked for close to a year. “I’m going to tell you if you haven’t done it, do it,” she said. “You’ll get a return on your investment. It’s been a great amenity.” Putting Data to Work to Determine Amenity Value RealPage is using its vast network of lease transaction data to pinpoint amenity value so operators can realize true impact. In a recent webinar, company representatives said that lease prices and time on market can dictate what residents ultimately think about the amenity. Lease time and rents for like units with varying amenities are compared to deter- mine whether or not they are an attractive option. For example, a unit with a balcony that leases quicker and for a few bucks more than one without would indicate a winner. Rich Hughes, head of RealPage’s data science team, says the data is particularly relevant in this day and age considering the volume of amenities on the market. “The data we’ve seen shows there comes a point too much amenity load on a unit is bad for it,” he said. “As with most things, being in the middle of a pack in terms of amenity structures seems to be fairly safe. Trying to be the maximal value-add sort of leader comes with its own sets of problems.” CF Real Estate Services periodically surveys residents to see what amenities are on their minds but doesn’t believe the fate of a lease rests solely on how much bling the community offers. “At end of day, people are leaving for basic reasons and it’s not necessarily amenities,” Hatfield said. “It’s because we didn’t deliver on our promise, we didn’t provide service that we were going to and they got a better price. The struggle is to continue to find ways to balance that and override other things, and make sure we’re providing the service. I don’t think there is a scientific way to absolutely tie a move-out to an amenity.”