Economic fundamentals and tenant preferences continue to drive change in the multifamily sector. The upcoming “Connect Midwest: Multifamily & Adaptive Reuse Trends” will address these and other issues. Recently, AMILI Residential’s founder, chairman and CEO Gregory Mutz was asked about some of the issues impacting residential rentals.
What are some of the trends and challenges that Chicago’s multifamily owners and operators face today? It is a mixed bag; job growth is solid in Chicago for those aged 20-35 but inflation has impacted everything from wages to insurance costs, making affordability an issue for tenants. Additionally, deal flow has declined significantly since March 2022 with transactions totaling just under $13 billion this quarter – lower than during even the Great Financial Crisis – as values have dropped year over year leading many owners to take a wait-and-see approach before selling their properties.
How is technology enhancing apartment operations? Business intelligence (BI) data can be used to reduce overhead while improving resident experience while artificial intelligence (AI) systems allow immediate connectivity when someone emails or calls with questions on unit size or pet deposits being answered within seconds instead of hours by what appears like a live human being on both ends due its sophistication level . Robust connectivity with high internet speeds are also essential as residents now prefer streaming services over traditional television sets without landline home telephones .
What’s going on with multifamily construction and adaptive reuse in the Chicago area? Rent levels currently sit at 60%-80% replacement cost meaning it doesn’t make sense financially develop new apartments yet however adaptive reuse projects may be more successful outside city limits where converting empty office buildings into residential units could prove more viable than downtown due Lori Lightfoot’s proposed $165 million TIF district which hasn’t been able to make numbers work so far .
Meet Lee Golub alongside other experts at “Connect Midwest: Multifamily & Adaptive Reuse Trends,” taking place June 13th 2023 at W Chicago! Click here for further information regarding registration details
