Ben Schall, the current president and CEO of AvalonBay Communities, may be a newcomer to the multifamily sector in comparison to other senior leaders at similar companies. He joined AvalonBay in late 2020 as president and took on the role of CEO just a year later. This marked a shift from his previous experience in retail-oriented companies such as Rouse and Seritage Growth Properties.
In an interview with Walker & Dunlop CEO Willy Walker on this week’s Walker Webcast, Schall shared that one of the main reasons he was drawn to lead AvalonBay was because of its longstanding core values. These values include caring for others, integrity, and continuous improvement – all qualities that resonated with him as a leader. He also noted that these values were similar to those he had instilled during his time at Seritage.
At the time Schall joined AvalonBay, there was uncertainty due to post-pandemic changes within the multifamily sector. However, he stated that their focus on expanding into gateway suburban markets had already begun.
Schall explained how they have been continuously evolving their business strategy based on changing market conditions: “Our goal is always about how do we need evolve our business given what’s happening around us.” The company’s expansion into these suburban markets has proven successful over time: “Our portfolio is now better positioned for rental demand over next 10 years compared to last 10 years.”
Despite this success in gateway suburbs rather than Sunbelt markets like many competitors have focused on recently,Schall emphasized their desire for further evolution within their portfolio composition: currently consisting mostly (90%)of suburban coastal properties but aiming towards having only (75%) by acquiring or developing properties through various channels including acquisitions,funding developers,and investing proptech startups such as EliseAI which provides AI-based solutions for customers’ first interaction with them.Schallsaid,”We try find relationships where we can have both strategic and financial benefits.”
One key area of evolution for AvalonBay is their operating model, which has increasingly shifted towards technology-based solutions. Schall mentioned that they were early adopters of EliseAI (now valued at over $1 billion), providing feedback to tailor the product to their needs. He also noted that they invest in proptech startups with similar potential for strategic and financial benefits.
To learn more about Ben Schall’s insights on AvalonBay’s constant evolution, you can watch the full replay of his interview on Walker Webcast through various channels such as YouTube, Spotify,and Apple Podcasts. Don’t forget to subscribe for future episodes featuring industry leaders every week.
