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How Proptech Can Help Multifamily Real Estate Owners Overcome Modern Challenges
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How Proptech Can Help Multifamily Real Estate Owners How Proptech Can Help Multifamily Real Estate Owners Overcome Modern Challenges
Aaron Rudenstine is chief executive officer of ButterflyMX, a provider of access control technology for multifamily, By AARON RUDENSTINE commercial, gated communities and student housing properties. He was a co-founder of Citymaps, which was acquired by TripAdvisor in 2016, and is an investor in Reddit, Button, Omaze, Henry The Dentist, Parallel Wireless, Clear Ballot, Pinata and FilmRise.
When many people think of Problem 1: Property Management Turnover real estate, innovation and According to a survey conducted by the National technology usually aren’t Apartment Association (NAA) and ndp | analyttheir first thoughts. In fact, ics, staffing and recruitment are the biggest conreal estate has historically been behind the times cerns plaguing multifamily professionals. Whethwhen it comes to adopting technology. er you have an in-house property management team or work with a third-party company, high But that’s all changing thanks to modern real employee turnover is hurting your bottom line. estate innovators and disruptors. By embracing technological innovations including analytics, Today, multifamily apartment staffing suffers an sensors and smartphones, property technology annual turnover rate of around 33%, which is well (proptech) companies are taking real estate into above the national average of about 22%. What’s the 21st century and beyond. causing property managers to quit? Job-related stress and burnout are perhaps the leading causAccording to the market intelligence platform CB es of turnover. And it’s easy to understand why. Insights, investments in proptech grew from $186 million in 2011 to a whopping $8.9 billion in 2019. Your property management staff handles endUndoubtedly, proptech is the next big thing in less paperwork, facilitates move-ins and movereal estate — and it has the power to help multi- outs, oversees property access permissions, family property owners overcome big challenges. works with vendors, coordinates maintenance requests, manages package deliveries and so Here’s how proptech can help cut costs, im- much more. It’s a difficult job rife with tedious, prove the resident experience, save time and manual processes that lack much-needed automaximize NOI. mation. And turnover is especially concerning considering that management staff keeps the The Problems Multifamily Owners Face Today building running smoothly and contributes sigThere are plenty of challenges affecting multi- nificantly to cultivating the resident experience. family owners these days, but perhaps the three biggest are property management turnover, op- Problem 2: Operational Efficiencies erational efficiencies and revenue growth. On a granular level, building operations encom-
Overcome Modern Challenges
Aaron Rudenstine is chief executive officer of ButterflyMX, a provider of access control technology for multifamily, By AARON RUDENSTINE commercial, gated communities and student housing properties. He was a co-founder of Citymaps, which was acquired by TripAdvisor in 2016, and is an investor in Reddit, Button, Omaze, Henry The Dentist, Parallel Wireless, Clear Ballot, Pinata and FilmRise. W hen many people think of real estate, innovation and technology usually aren’t their first thoughts. In fact, Problem 1: Property Management Turnover According to a survey conducted by the National Apartment Association (NAA) and ndp | analytics, staffing and recruitment are the biggest conpass everything from property access control and maintenance repairs to delivery managereal estate has historically been behind the times cerns plaguing multifamily professionals. Wheth- ment and lease administration. When you zoom when it comes to adopting technology. er you have an in-house property management out to view the bigger picture, you see that these team or work with a third-party company, high processes create the keystone to your success. But that’s all changing thanks to modern real employee turnover is hurting your bottom line. At the end of the day, your NOI depends on estate innovators and disruptors. By embracing smooth building operations. Improving operatechnological innovations including analytics, Today, multifamily apartment staffing suffers an tional efficiencies will boost your bottom line. sensors and smartphones, property technology annual turnover rate of around 33%, which is well (proptech) companies are taking real estate into above the national average of about 22%. What’s You might not be the person handling these daily the 21st century and beyond. causing property managers to quit? Job-related operational tasks, but you should be focused stress and burnout are perhaps the leading causon streamlining them. That means sourcing According to the market intelligence platform CB es of turnover. And it’s easy to understand why. reputable vendors, automating labor-intensive Insights, investments in proptech grew from $186 processes and cutting costs where possible — million in 2011 to a whopping $8.9 billion in 2019. Your property management staff handles endwhich is a tall order, especially now amid labor Undoubtedly, proptech is the next big thing in less paperwork, facilitates move-ins and moveshortages, high turnover and market volatility. real estate — and it has the power to help multi- outs, oversees property access permissions, family property owners overcome big challenges. works with vendors, coordinates maintenance requests, manages package deliveries and so Problem 3: Maximizing Revenue Everyone wants to maximize revenue but increasHere’s how proptech can help cut costs, im- much more. It’s a difficult job rife with tedious, ing NOI and returning a property’s performance prove the resident experience, save time and manual processes that lack much-needed autoto pre-pandemic levels pose big challenges. Of maximize NOI. mation. And turnover is especially concerning considering that management staff keeps the particular concern are mass movements away The Problems Multifamily Owners Face Today building running smoothly and contributes sigfrom many urban areas and a shift in what renters There are plenty of challenges affecting multi- nificantly to cultivating the resident experience. look for in apartments (due to new remote jobs, family owners these days, but perhaps the three changing lifestyles, etc). Generating revenue in biggest are property management turnover, op- Problem 2: Operational Efficiencies these uncertain times feels especially daunting. erational efficiencies and revenue growth. On a granular level, building operations encomMaximizing revenue also means differentiating your building from others. According to RealPage, demand for apartments is espe-
pass everything from property access control and maintenance repairs to delivery management and lease administration. When you zoom out to view the bigger picture, you see that these processes create the keystone to your success. At the end of the day, your NOI depends on smooth building operations. Improving operational efficiencies will boost your bottom line. You might not be the person handling these daily operational tasks, but you should be focused on streamlining them. That means sourcing reputable vendors, automating labor-intensive processes and cutting costs where possible — which is a tall order, especially now amid labor shortages, high turnover and market volatility. Problem 3: Maximizing Revenue Everyone wants to maximize revenue but increasing NOI and returning a property’s performance to pre-pandemic levels pose big challenges. Of particular concern are mass movements away from many urban areas and a shift in what renters look for in apartments (due to new remote jobs, changing lifestyles, etc). Generating revenue in these uncertain times feels especially daunting. Maximizing revenue also means differentiating your building from others. According to RealPage, demand for apartments is espe-
TECHNOLOGY
cially high right now, but what will make a renter choose your building over the competition?
How Proptech Can Help
You’re all too familiar with the problems afflicting the industry today. Luckily, there’s a property technology solution for virtually every frustration you’re facing. Boost Resident Acquisition The success of your investment hinges on maintaining a low vacancy rate. And while there are steps you can take to reduce tenant turnover, you can’t eliminate it altogether. So, it’s important to put ample effort into your resident acquisition strategies — and your best bet is to invest in technologies designed to simplify those tasks. Proptech solutions that can boost resident acquisition efforts include: ○ CRM software: Invest in a CRM (customer relationship management) platform to keep leads organized and stay on top of communication with prospects. ○ Self-guided tour technologies: With self-guided tours, prospects can view your building on their own schedule — and staff members don’t have to take time out of their busy days to lead tours. Increase Employee Retention Retaining your staff helps maintain a positive resident experience and reduces expenses associated with recruiting, hiring and training new staff members. The key to retaining property staff is making their jobs easier through automation. Modern proptech makes building automation a breeze, saving management time and hassle. You can automate building processes by: ○ Adding a controlled-access package room to expedite the delivery process and spare staff the hassle of accepting, storing and distributing deliveries. ○ Adopting robust property management software, which streamlines everything from lease administration to rent collection.
cially high right now, but what will make a renter choose your building over the competition? Streamline Building Maintenance Staying on top of building maintenance is vital to keeping your property safe,
How Proptech Can Help
You’re all too familiar with the problems afflicting the industry today. Luckreducing liability, saving money on costly repairs and retaining residents. And ily, there’s a property technology solution for virtually every frustration proptech can help you keep your building in tip-top shape. you’re facing. For example, many property owners have installed smart pipes equipped Boost Resident Acquisition with sensors that can detect potential leaks, exchange information and talk to The success of your investment hinges on maintaining a low va- each other. By analyzing the data, a smart pipe system can notify you before cancy rate. And while there are steps you can take to reduce tenant structural failure happens so you can send in a mechanic before you have a turnover, you can’t eliminate it altogether. So, it’s important to put am- costly problem on your hands. ple effort into your resident acquisition strategies — and your best bet is to invest in technologies designed to simplify those tasks. Another helpful tool is property maintenance software. By automating maintenance workflows with software, you’ll streamline each step of the process. Proptech solutions that can boost resident acquisition efforts include: Automatically, maintenance crews can receive new work request notifications, technicians can be assigned to requests and management or owner○ CRM software: Invest in a CRM (customer relationship management) ship is notified when maintenance is complete — there is no manual work platform to keep leads organized and stay on top of communication with at all. prospects. ○ Self-guided tour technologies: With self-guided tours, prospects Simplify Property Access can view your building on their own schedule — and staff members Believe it or not, ensuring simple yet secure property access can help imdon’t have to take time out of their busy days to lead tours. prove the resident experience, cut costs and save time for staff. In fact, implementing access control is one of the most effective ways to boost your NOI. Increase Employee Retention Retaining your staff helps maintain a positive resident expeThink about it: your residents want an easy way to let in their guests and delivrience and reduces expenses associated with recruiting, ery carriers. Your staff is sick of spending hours vetting visitors or organizing hiring and training new staff members. The key to retainmountains of delivered packages. Even if you have a staffed front desk, their ing property staff is making their jobs easier through automation. Modern proptech makes building autime is better spent offering personalized services to residents. And outdated tomation a breeze, saving management time and access solutions like physical keys, key cards and fobs are a nuisance and an hassle. unnecessary expense. You can automate building processes by: Proptech solutions like smartphone-powered video intercoms and access ○ Adding a controlled-access control systems save you time and money by empowering residents to manpackage room to expedite the de- age access for themselves and their visitors right from their smartphones. livery process and spare staff the These systems offer a convenience and versatility that many residents are hassle of accepting, storing and finding hard to live without — in fact, residents will even pay more for them. distributing deliveries. According to a study by Wakefield Research, 86% of millennials are willing to ○ Adopting robust prop- pay more per month to live in a smart apartment — which gives wise property erty management soft- owners the chance to ride a market trend while streamlining building operaware, which streamlines tions and reducing operating expenses. everything from lease administration to More multifamily properties are investing in smart technology by the day rent collection. — and with good reason. As you’ve seen, proptech today can help you overcome the challenges of inefficient building management, employee turnover, resident acquisition and lackluster NOI. Who knows what it can help you overcome in the future?
Streamline Building Maintenance Staying on top of building maintenance is vital to keeping your property safe, reducing liability, saving money on costly repairs and retaining residents. And proptech can help you keep your building in tip-top shape. For example, many property owners have installed smart pipes equipped with sensors that can detect potential leaks, exchange information and talk to each other. By analyzing the data, a smart pipe system can notify you before structural failure happens so you can send in a mechanic before you have a costly problem on your hands. Another helpful tool is property maintenance software. By automating maintenance workflows with software, you’ll streamline each step of the process. Automatically, maintenance crews can receive new work request notifications, technicians can be assigned to requests and management or ownership is notified when maintenance is complete — there is no manual work at all. Simplify Property Access Believe it or not, ensuring simple yet secure property access can help improve the resident experience, cut costs and save time for staff. In fact, implementing access control is one of the most effective ways to boost your NOI. Think about it: your residents want an easy way to let in their guests and delivery carriers. Your staff is sick of spending hours vetting visitors or organizing mountains of delivered packages. Even if you have a staffed front desk, their time is better spent offering personalized services to residents. And outdated access solutions like physical keys, key cards and fobs are a nuisance and an unnecessary expense. Proptech solutions like smartphone-powered video intercoms and access control systems save you time and money by empowering residents to manage access for themselves and their visitors right from their smartphones. These systems offer a convenience and versatility that many residents are finding hard to live without — in fact, residents will even pay more for them. According to a study by Wakefield Research, 86% of millennials are willing to pay more per month to live in a smart apartment — which gives wise property owners the chance to ride a market trend while streamlining building operations and reducing operating expenses. More multifamily properties are investing in smart technology by the day — and with good reason. As you’ve seen, proptech today can help you overcome the challenges of inefficient building management, employee turnover, resident acquisition and lackluster NOI. Who knows what it can help you overcome in the future?
What’s Happening in The West Village in a Post-Pandemic World?
By Nathaniel Mallon
Nathaniel Mallon managing partner, Verada Retail
Although New York City suffered immensely during the COVID-19 pandemic, the West Village has rebounded nicely. Businesses continue to open, while the residential real estate market outpaces the competition. However, as we transition into a post-pandemic environment, locals question their community’s future. Will these trends continue? Or will the real estate market bust, and will retailers be forced to vacate due to growing economic concerns?
Taking a closer look at both trends — a booming real estate market and thriving food and beverage scene — it appears that West Village residents, landlords and businesses can continue comfortably knowing there is no immediate downturn foreseeable in their future.
About the West Village
With its gorgeous blend of 19th-century brownstones, cobblestone streets and treelined sidewalks, the West Village has become a popular setting for contemporary film and television. Because of its inspiring atmosphere, the neighborhood attracts artistic visionaries and features an abundance of small art galleries, quaint bookstores and charming cafes. With an endless number of activities, premier shopping, access to transit and the world’s most sought-after restaurants, the West Village is considered one of the most coveted neighborhoods in New York City.
Post-Pandemic: The West Village
True to its history, the West Village continues to be a site of change and evolution within the city, even in a post-pandemic era. Over the past year, both residents and small businesses have enjoyed a sort of renaissance following two years of social distancing during the pandemic. Gentrification has brought a new generation of restaurateurs and retailers, enhancing the scene the area has already established.
Popular standbys like Dimes Square, Clandestino, Metrograph and Coming Soon are being joined by new retailers such as Susan Alexandra, Colbo, Desert Vintage and Le Dive. Additionally, in anticipation of increased tourism, Nine Orchard, a 14-story hotel featuring 116 guest rooms, is opening. The hotel is transforming an existing landmark, the former Jarmulowsky bank building, “into an elegant hotel and culinary destination … Originally built in 1912, [the hotel] has been lovingly restored and reimagined for travelers and locals alike. [It] is surrounded by cultural institutions, animated neighborhood streets, and some of the city’s most exciting shops and restaurants,“ according to the building’s website. This exciting new establishment also features three new restaurants, including a grill, a corner-tavern-style bar and a cocktail lounge.
In addition to these hot spots, several new restaurants have opened in the West Village, including Bella Dea Wine + Raw Bar, an innovative concept specializing in sustainable seafood and low-intervention wines. Originally a pandemic pop-up, Bella Dea is the East Coast outpost of Santa Monica-based Crudo e Nudo and is transforming the local restaurant scene by meeting the newest
New restaurants have come to the neighborhood.
demands of local consumers. The restaurant currently shares its West Village home with Breakfast by Salt’s Cure, an American diner recognized as one of the hottest breakfast spots in the West Village.
Real Estate in the West Village
The continuation of new retailers in the area has increased demand for residential units, attracting some of the top developers in New York City. Whether it is just coincidence or a direct correlation is insignificant — the critical fact is that the residential market in the West Village has seen a drastic transformation since the onset of the pandemic, with housing prices soaring as demand surpasses supply.
According to recent data from Redfin, “In April 2022, West Village home prices were up 14.4% compared to last year, selling for a median price of $1.9 million. On average, homes in West Village sell after 60 days on the market compared to 120 days last year. There were 86 homes sold in April this year, down from 124 last year.” Sale prices are not the only aspect of the residential market that spiked; West Village rents also soared. Redfin revealed that the average for a 1-bedroom in the West Village is currently renting for $4,495, a 22% increase compared to the previous year. Furthermore, “Over the past month, the average rent for a studio apartment in West Village increased by 14% to $3,995. The average rent for a one-bedroom apartment remained flat, and the average rent for a two-bedroom apartment increased by 8% to $6,800.”
One of the most recently closed transactions making headlines in the West Village is the sale of a mixed-use building at 35 Bedford St. A pair of limited liability companies tied to Abby Modell, sister-in-law of Mitchell Modell, the former CEO of the now-defunct Modell’s Sporting Goods, purchased the commercial asset for $31 million. This six-story building is in the heart of the neighborhood and includes 33 apartments and three retail units.
Responding to rising prices and ongoing supply, developers are taking action. A joint venture of 15 Central Park West developers plans to build a $1 billion luxury tower in the West Village. Having recently purchased 570 Washington St., a 1.3-acre vacant lot between Houston and Clarkson on the West Side Highway, developers plan to erect a $1 billion-plus, 36-story, super-luxury condo tower featuring open river and skyline views. Apartments will be priced in the $5,000-persquare-foot-range, which is unprecedented in the downtown area. While the vacant parcel traded for $350 million — an extreme price for even New York standards — developers are optimistic that this new development will attract some of the wealthiest people in the tech industry.
Installation is also nearing completion on 76 Eighth Ave. Located at the intersection of West 14th Street, this 120-foot, 10-story commercial structure features a decorative steel façade and borders the Meatpacking District, Chelsea and West Village neighborhoods. With 30,000 square feet of office space and ground-floor retail, the building is close to several restaurants, bars and retail spaces and offers quick and easy access to Chelsea Market, the High Line and Hudson River Park. Furthermore, attention to newer amenities within the West Village has also been at the forefront of local developers. For example, construction on Gansevoort Peninsula Park, a new, 5.5-acre public recreational space on the Hudson River waterfront, is progressing nicely. Located next to Pier 53, directly across from the Whitney Museum of American Art, the park will feature a public beach, a soccer field, a children’s playground, kayak slips, a salt marsh and a dog run, as well as viewing platforms and verdant landscaping. The park’s southern edge will be home to David Hammons’ Day’s End, a skeletal outline of a pier shed built over the Hudson River on the former site of Pier 52.
What Does the Future Hold?
The West Village offers something for everyone, including lush parks for kids and the outdoorsy type, trendy restaurants for foodies, and celebrity sightings for pop culture fans. Increasing property values and recent real estate developments continue to attract and support new residents and businesses.
Whether the real estate market drove the food and beverage scene or vice versa, the question is a moot point. The reality is that whatever prompted this shift in the historic West Village has catapulted a transformation that residents, both current and prospective, can look forward to.
The eternal Village Vanguard Small boutiques draw shoppers
