Bock & Clark’s Jim Brown and Tim Kidd attended the fourth annual BMAC (Bisnow’s Annual Multifamily Conference) West on July 20th in Los Angeles, CA. The conference featured a variety of speakers who are some of the nation’s leading multifamily and mixed-use executives, including keynote speaker Scott Croul, Managing Regional Director of Freddie Mac.
This year’s conference was packed full of informative content. If you were unable to attend, see below for a few of the event’s highlights.
The State of the Multifamily Industry
Multifamily properties in southern California are still in demand. CityView CEO Sean Burton discussed the influence of Millennials on the multifamily market. New industry findings show that Millennials are the driving force behind much of the continued activity, as they are 2.5 times more likely to rent a home than any other generation. This is changing the landscape of offered amenities, which now includes luxuries such as yoga studios, pet spas and bike parking along with new and different layouts for units and complexes to accommodate the Millennial lifestyle and allow access to features such as electric vehicle charging stations – no longer considered a luxury. Millennials often require living environments that tie more frequently to a rental property rather than purchasing a home. Rental properties are more typically found within walking distance of jobs, transportation, shopping, dining and entertainment.
After his analysis of the state of the industry, Burton challenged the multifamily professionals in the room to take leadership roles in order to shape the industry with decisions that are not only good for the industry, but also “good for the communities in which we work.”
Other Industry Findings
Construction on new multifamily units continues, as well as the acquisition of existing properties for investment and/or renovation. While some investors are concerned about the ramifications of the outcome of the 2016 election, many industry leaders are still optimistic about the economy for the next 6-9 months.
New Changes to Industry Standards
Industry leaders have recognized the shortage of affordable housing. Panelisth3s also discussed the need to create buildings that are more sustainable and “green” than those prior, with initiatives like using recyclable building materials and designing systems to recapture water.
Bock & Clark
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In addition to seminars, detailed educational materials related to commercial real estate due diligence can be found on our website. Visit our commercial due diligence resources page. We are always updating our resources based on industry updates and the needs of our clients and contacts.