We turned to Jeff Margolis, partner at Berger Singerman and co-manager of the Business, Finance & Tax Team, to get some answers.
By Jennifer LeClaire (GlobeST.com Article) — How is the multifamily real estate market evolving? What trends are prevalent in the Southeast? We turned to Jeff Margolis, partner at Berger Singerman and co-manager of the Business, Finance & Tax Team, to get some answers.
“Although the velocity of multifamily products being sold nationally has dropped 4.5% from 2015, the Southeast multifamily real estate market continues to outpace the national average,” Margolis tells GlobeSt.com. “With development going hand-in-hand with job growth and population growth, the continued growth in the Southeast is fueled by job growth, population growth, and a dynamic and robust economy.”
Margolis also reports capital is coming to the Southeast at a record pace. As activity and transactions in other regions are beginning to slow down, he says, investors are flocking to markets throughout the Southeast.
“A big issue for the multifamily real estate market is mobility,” Margolis says. “Several developers and investors will not consider a project unless it is centered around or in close proximity to transit centers. Projects are being designed to provide residents with the choice to walk, bicycle or take public transportation to meet their daily needs.”
What’s more, he continues, multifamily projects are focusing on the walking experience to enable and encourage high levels of walking and biking by providing a high-quality, pedestrian friendly environment. The combination of buildings and public spaces, he explains, define a community, with the public spaces becoming the “living rooms” of the community.
“A mix of uses in close proximity creates synergy and diversity, activity, and forms the basis for a complete community,” Margolis says. “This is the new urbanism or new urban style.”
Margolis also points to an emerging trend: amenities are evolving with technology and lifestyles. He reports technology which allows connectivity with smartphones and other devices is being integrated into multifamily projects to allow for easy access, deliveries, work orders and other interactions with property management. He says projects are also being designed with flexibility so that spaces can be converted and adapted as residents’ wants and needs change.
“Overall, a major trend in the multifamily real estate market can be summarized as ‘ease of living’ and convenience, catering to residents needs and wants in a work, live, and play environment,” Margolis says. “Developers are creating, and investors or looking for vibrant, livable, sustainable communities that are great places for people to live, work and play and, in turn, are financially successful.”