2022 Trends Report

2022

Trends Report

W W W.T H E LY S T. C O M

2022 Trends Report Ou r wo rld is en te ri n g i n to a t i m e wh e n t h e p o te nt i al e n d o f COVI D -19 is a n e n cou ra g i n g rea l i ty a n d, t h e re fo re , w i l l affe c t fut u re st ra tegy, p os i t i on i n g , a n d e f fe c t i ve n e ss o f marke t i n g a c ro ss t h e boa rd . Con s u m e r b e h avi or i n t h e Uni te d St ate s has been tested in t h e m os t ex t re m e ways si n ce t h e b e g i nni n g o f t h e pa n demic — a n ew n orm n o on e wa s p re pare d fo r, i n cl ud i n g t h e f i e ld o f m a rket i n g .

Now in t h e m id s t of 202 2 , Ca t a l ys t h a s o b se r ve d a co nt i nui n g wave o f o pt imi s m wh e n i t com e s to m ajo r t re n d s p e r t ai ni n g to ou r fo cu sed rea l e s t a te ve r t i c a l s for m ult i fami l y, se ni o r l i vi n g , stu dent h o u sin g , a n d h os p i t a l i ty. W h e t h e r i t ’s a re f re sh e d t ake on wo rk/ life ba l a n ce , a s u rg i n g i n te re s t i n n ew a d ve nt ure s, o r a fo r wa rd-fo cu s e d a p p roa ch to n ew p l at fo rms an d te chn o l o g y, a n ew sense o f con f i d e n ce a n d h op e f u l n e ss co nt i nue s to b e i nfu sed into t h e i n d u s t r y l i ke b eve r b e fo re .

P h oto by Bro o ke Cag l e on U n spl ash

2 l 202 2 T RE N D S R E P O RT

PANTONE HAS EVEN SET A PRECEDENT OF OPTIMISM FOR 2022 WITH THEIR COLOR OF THE YEAR, VERY PERI: “Di sp l ayi n g a care f re e co nf i d en ce an d a d ari n g curi o si ty t hat ani mate s o ur creat i ve sp i ri t , i n q ui si t i ve an d i nt ri g ui n g PANTO NE 17-3 93 8 Ve r y Pe ri h e l p s us to e mb ra ce t hi s alte red l an d scap e o f p o ssi b i l i t i e s, o p enin g us up to a n ew vi si o n as we rewrite o ur l i ve s. Re ki n d l i n g g rat i t ude for so m e o f t h e q ual i t i e s t hat b l ue re p re s e n t s co mp l e m e nte d by a n ew p e rsp e c t i ve t hat re so na tes tod ay, PA N TO NE 17-3 93 8 Ve r y Pe ri p l a ce s t h e fut ure ah ea d i n a n ew l i g h t .

We a re l i vi n g i n t ransfo rmat i ve t i m e s. PA NTO NE 17-3 93 8 Ve r y Pe ri i s a symb o l o f t h e g l o bal ze i tg e i st o f t h e m o m e nt an d t h e t ra n s i t i on we are g o i n g t hro ug h. As we e m e rg e f ro m an i ntense p e ri od of i s ol at i o n, o ur n o t i o ns an d st an d ard s are chan g i n g , a n d ou r p hys i c a l an d d i g i t al l i ve s have m e rg e d i n n ew ways. Di g ita l d e s i g n h e l p s us to st re tch t h e l i mi t s o f real i ty, o p e ni n g t h e door to a d yn a m i c vi r t ual wo rl d w h e re we can ex p l o re an d create n ew col or po ssi b i l i t i e s. Wi t h t re n d s i n g ami n g , t h e ex pan d i n g p op u l a ri ty of t h e m e t ave rse an d ri si n g ar t i st i c co mmuni ty i n th e d i g i t a l s pa ce PANTO NE 17-3 93 8 Ve r y Pe ri i l l ust rate s t h e fusi on of m od e rn l i fe an d h ow co l o r t re n d s i n t h e d i g i t al wo rl d are b ein g m a n i fe s te d i n t h e p hysi cal wo rl d an d vi ce ve rsa.” h tt ps: //www. p a n to n e .co m /co lo r- o f- th e -ye a r-2022

As con s u m ers sl ow l y g row a ccusto m e d to l i fe g o i n g ba ck to “ n orm a l ,” t h ey w i l l m o st l i ke l y se e k o ut b ran d s t hat h e l p t h a t p roce s s al o n g , w h e t h e r i t ’s e m o t i o nal l y, f i nan ci al l y, o r re c rea t i on a l l y co nn e c te d . A n d t h e p o si t i ve marke t i n g asp e c t to t h i s t ra n si t i o n ri d i n g o n t h e m o m e nt um o f o p t i mi sm i s t h a t b ra n d s an d marke te rs w i l l b e ea g e r to p rovi d e t hi s s u p p or t t h ro ug h a p ro g re ssi ve an d h o p e ful o ut l o o k , w hi ch will u n d ou b te d l y b e p ro je c te d t hro ug h d e si g n, co l o rs, m e ssa g i n g, a n d m ore . “ T h e Fut ure 1 0 0 : Tre n d s a n d C h a n g e to Wa tch in 2022” — Wu n d e rm a n T h om pson In te llige n ce R e p o r t , p a g e 2

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TA B LE O F

Contents

P h oto by B rooke Cag l e on U n s p la s h

T h i s rep o r t i s a co m p i latio n o f tre n d s p ulle d f ro m a varie ty o f cre d ib le, m a rket- rel a ted s o u rce s. Th e re p o r t b e g ins with a g e n e ral ove r view o f t ren d s t h a t w i l l b e p er vasive thro ug h o ut all in d ustrie s in 2022 , an d th en f u r t h er fo cu s es o n t h e in d ustrie s o f m ul tifam ily real e state , se nio r livin g co m m u n i t i es , s t u d en t h o usin g , an d h o sp itality.

Tren d s l i s t cu ra ted a n d e d ite d by Alliso n Musso lin e an d Dana Sle g e r.

L ayo u t a n d d es i g n by H aley Drinkwate r.

A publ i cat i on of G ood M oo d Me d ia . A ll R igh ts R e s e r ve d . Co py rig h t 2022 .

01

GENERAL TRENDS

The Metaverse

08

Augmented Ads

09

Audio Experiences

10

Comfort Commercial and Euphoric Ads

11

Shoppable Experiences

12

B2B Waste Reduction Initiatives

13

Biophilic Design

15

02

M U LT I FA M I LY T R E N D S

Growing Focus on ESG

18

Urban to Suburban and Back Again

19

Rise in Single-Family Rentals

20

Smart Buildings

21

Barkitecture

22

Mail as a Major Amenity

23

Modular Work

25

03

SENIOR LIVING TRENDS

Staff ing Scramble

28

Regional Reset

29

Increase in Middle Market

30

Memory Care Boom

31

Customized Care

32

On-Site Primary Care

33

Occupancy and Pricing Innovation

35

04

STUDENT LIVING

TRENDS

Regional Growth

38

Shifting Demographics

39

Affordability

40

Public and Private Partnerships

41

Graduate Student Housing

42

Desire for Mixed-Use Buildings

43

05

H O S P I TA L I T Y T R E N D S

Post-Pandemic Hospitality

46

Embracing Bleisure

47

Resort and All-Inclusive Destinations

48

Year of the GOAT

49

Back to Business as Usual

51

01

General Trends

The Metaverse M E TAV E R S E I S A P L AY G RO U N D T H AT B R A N D S WA N T TO P L AY O N F O R A LO N G T I M E

“ Th e term ‘ m et ave rs e’ re fe rs to a vi r t u a l rea lity spa ce in wh i ch u s ers c a n i nt era c t wit h a co m p ut er- g en erat ed env i ro n m ent , a s w e l l as w i t h on e a n ot h er. Te ch com pa nies a re ra c i n g to d eve l op t h e potent ia l o f t h e s e d i g i t a l s pa ce s , wi t h e m pha sis o n soc i a l l i fe , c u lt u re , a n d b ran d pre sen ce.” “ 2022 Tren d Repor t : T h e R oari n g 20’s A re Co m in g B a ck” — Tren d H un te r, pag e 26

“ Th e co n cept o f v i rt u a l rea l est at e is get t i ng t rac t i o n wi t h t h e p u b l i c a s t h e pop u la rity o f N F Ts h a s i n c rea s e d a n d c rea ted a sense of c u ri os i ty i n b ot h con su m ers a n d e n t re p re n e u rs .” htt ps: //www.tren dh unte r.com /t re n ds/v i r t ual- re a les tate , para. 1

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Augmented Ads AUGMENTED REALITY IS THE IN-DEMAND F O C U S F O R T H E D I G I TA L S PA C E “Au g m e n te d real i ty (A R) i s hi tt i n g t h e mai nst ream, an d con s u m e rs are sh ow i n g a g row i n g ap p e t i te fo r A R b ran d e n g a g e m e nt . Curre nt l y, t h e re are 1.5 b i l l i o n f re q ue nt use rs of A R , a n d t hi s i s fo re cast to hi t 4 . 3 b i l l i o n by 2025 , a cco rdin g to Au g u s t 2021 re search f ro m St at i st a. An d n o t ab l y, 70 % of co n s u m ers say t h ey want to see m ore A R ad s, a cco rd i n g to a Ju l y 202 1 sur vey.” “ T h e Fut ure 1 0 0 : Tre n d s a n d C h a n ge to Wa tch in 2022” — Wun de rm a n Th o m p s o n I n te llig e n ce R e p o r t , p a ge 93

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Audio Experiences AU D I O E X P E R I E N C E S A R E H E R E TO S TAY , BUT THEY NEED TO BE NEXT LEVEL

“ Wha t wa s rece n t l y con s i d e re d ‘ol d

“Luxur y b ran d s f ro m fashi o n to auto are

fas hio n ed’ is be i n g m a d e n ew a g a i n

al so i nve st i n g i n aud i o hard ware , l ux i f y in g

— aud i o - b ase d co m m u n ic at ion a n d

t h e ex p e ri e n ce … Au di o wi l l b e a key

eng ag e m e nt w i t h co nt ent a re b ein g

ch an n el for l u x u ry bran d s m ovi n g forward

revam p e d w it h a u d i o - on l y op t i on s .”

— an d a cr uci al e l e m e nt to co nsi d e r wh en

“ 2022 Tren d Repor t : T h e R oari n g 20’s A re Co m in g B a ck” — Tren d H un te r, pag e 2 2 1

“ Socia l m edia p l a t form s s u ch a s I n s t a g ram

craft i n g l uxur y ex p e ri e n ce s. “ Th e Fu tu re 1 0 0 : Tre n d s a n d C h a n g e to Watch in 2022” — Wu n d e rm a n Th o m p s o n I n te llig en ce R e p o r t , p a ge s 1 76 – 1 77

have driven a hyp e r- foc u s on vi s u a l e l e m ent s over t h e pa s t d e c a d e . N ow, e specia lly a s di g i t a l p l a t form s m a t u re a n d e n g a gem ent evol ve s , foc u s is s h i f t i n g to m ul t i s e nso ry elem ent s — a u d io, in p ar t i c ul ar , fo r a t ru l y i mm ers iv e exp e r i e nc e.” “ T h e Future 100: Tre n ds an d Ch an g e to Watch in 2022” — Wun d e rm an T h om pson Inte l l i g e n ce R epo r t , page 29

Ph o to by Ty le r N ix o n U n s p la s h

10 l 202 2 T RE N D S R E P O RT

P h oto by Kal Vi sual s on U nspl ash

Comfort Commercial and Euphoric Ads WELLNESS, JOY, AND AUTHENTICITY WILL BE A MAJOR MARKETING FOCUS AS CONSUMERS T R A N S I T I O N TO P O S T- PA N D E M I C L I F E

“As t h e wo rld g ra d u a l l y l i f t s pa n d e m i c-

“Con su m ers are seeki n g au t h ent i c,

rela ted rest ric t i on s , b ra n d s a re i n c rea s in g l y

u pl i ft i n g cont ent, an d b ran d s are m e etin g

prio rit izin g ‘ we l l n e s s ’ to h e l p ea s e p e opl e’s

t h e m o n p o si t i ve p l at fo rms, ai mi n g to

l i n gerin g a nx ie t i e s . Th is in c lu d es a d

g e n e rate joy i n t h e i r marke t i n g st rategies.”

ca mp ai g ns t hat foc u s o n com fort i n g an d re l axi ng t he m es t h at of f er a m ore p os i t i ve ou t l o o k o n t h e f u t u re t h a n wh a t h a s b e e n

“ Th e Fu tu re 1 0 0 : Tre n d s a n d C h a n g e to Watch in 2022” — Wu n d e rm a n Th o m p s o n I n te llig en ce R e p o r t , p a ge 8 6

se en in t h e la s t yea r.” “ 2022 Tren d Repor t : T h e R oari n g 20’s A re Co m in g B ack” — Tren d H un te r, pag e 41

2022 TRENDS REPORT l 11

P h oto by G e org i a De Lot z o n U n s p la s h

Shoppable Experiences L I F E S T Y L E R E L ATA B I L I T Y I S T H E K E Y TO A CONSUMER’S HEART “Consu m ers in c rea s i n g l y ex p e c t t h a t b ran d s match t h e i r l i fe sty les a n d s oc i a l m e d i a con s u m p t i on hab i t s w h e n t r yi n g to rela te to t h e m . T h e s e m ore a u t h e n t ic i nte ra c t i o ns b re e d bra n d loya lty a m on g con s u m e rs … S h op p ab l e ex p eri en ces are th e new e st way t h at com p a n ies a re c urat i n g u n i q u e b ran ded exp e r i e nc e s fo r c u sto m ers. T h e s e ex p e ri e n ce s [can b e e i t h e r i n- perso n o r v i r t u a l a n d ] i n cl u d e eve r y thi n g f ro m sh o p pab l e h o tel ro o m s to cooki n g s h ows .” “ 2022 Tren d Repor t : T h e R oari n g 20’s A re Co m in g Ba ck ” — Tre n d Hunter, page 85

12 l 202 2 T RE N D S R E P O RT

B2B Waste Reduction Initiatives E CO - CO N S C I O U S CO N S U M E R S W I L L G R AV I TAT E TOWA R D M O R E E N V I R O N M E N T- F R I E N D LY B R A N D S

“As con s u m ers b ecom e m ore eco-fri en dl y, t h ey’re p u t t i n g mor e p res s u re on bran d s to do t h e sam e, an d to h e l p t h e m a d apt t h e i r l i fe s tyl e s to re d uce t h e i r p e rso nal i mpa c t . B ran d s t hat ma ke t h e s e a d j u s t m e nt s i n aut h e nt i c ways ap p eal to t h e g row i n g d e m og ra p h i c o f e co - co nsci o us co nsum e rs… As b ran d s l o o k to b e com e m o re e nvi ro nm e nt al l y f ri e n d l y, t h ey ’re i n creasi n g l y t u rn i n g to b usi n e sse s t hat sp e ci al i ze i n waste - re d uc t i o n.

Eve r y t h i n g f ro m fo o d waste to tex t i l e waste i s n ow b e i n g a d d re s s e d an d re p urp o se d by e m e rg i n g B 2B b usi n e sse s.” “ 202 2 Tre n d R e p o r t: Th e R o a rin g 20 ’s A re Co m in g Ba ck ” — Tre n d H unter, pag e 43

P h otos by Toa H e f t i b a a n d Ta n a le e Yo u n g b lo o d o n U n s p la s h

2022 TRENDS REPORT l 13

P h oto by Dani st S oh on U n spl ash

14 l 202 2 T RE N D S R E P O RT

Biophilic Design INCREASED GREEN SPACE IN URBAN DEVELOPMENTS AND OFFICE ENVIRONMENTS WILL BECOME MORE COMMON

“A risin g fo cu s on u rba n b i od i ve rs i ty s ee s

“Gard en p l ot s, beeh i ves an d b i rd wat c hing

com m u nit ies a rou n d t h e worl d p l a n t i n g

— t h e l at est offi ce p erks are u pl evel i ng

na t ive fo rest s i n p u b l i c s pa ce s , u n i t i n g

b i op h i l i c desi g n… ‘ Th e ove rarchi n g

peo ple to pro te c t t h e p l a n e t , rewi l d i n g

t re n d o f t h e past f i ve years has b e e n th e

c i t ies, a n d provi d i n g p l a ce s for i n te ra c ti o n…

h o te l i f i cat i o n o f t h e o ff i ce’… O ve r t h e

Cit i e s ar e m akin g ro om for m i c rofo rest s,

n ex t f i ve years, ex p e c t to se e t hi s shi ft

a llow i ng ur b an d w el lers to recon n ec t wi t h

to t h e ‘o utd o o ri f i cat i o n’ o f t h e o ff i ce a s

n at ur e a n d w ild l i fe t h a n ks to t h e s e e d i n g o f

co mpani e s b e t o n nat ure as t h e fut ure of

n ew green pu b l i c te rra i n .”

o ff i ce d e si g n.”

“ T h e Future 10 0: Tre n ds an d Ch an g e to Watch in 2022” — Wun d e rm an T h om pson In te l l i g en ce R epo r t , page 9

“ Th e Fu tu re 1 0 0 : Tre n d s a n d C h a n g e to Watch in 2022” — Wu n d e rm a n Th o m p s o n I n te llig en ce R e p o r t , p a ge 207

2022 TRENDS REPORT l 15

02

Multifamily Trends

Growing Focus on ESG W H E N I T CO M E S TO R E A L E S TAT E , E N V I RO N M E N TA L , S O C I A L , A N D G OV E R N A N C E ( E S G) I N I T I AT I V E S W I L L P L AY A S I G N I F I CA N T RO L E T H I S Y E A R “Impa c t s w ill n ot on l y com e i n t h e form o f l e g i sl at i o n… b ut al s o f ro m federa l re g u l a t i on . Th e S ec u r i t i es an d Ex ch an g e Com m i s si o n (S E C ) is ex p ec t ed to i s s u e ru l es to i m prove ESG re p o r t i ng co ns i st en c y a c ros s va riou s di scl osu res an d rep ort s to inv e sto rs . T h es e r u l e s wi l l tou ch on ea ch o f t h e ESG p ri n ci p l e s, i n clu din g clim a te ch a n g e , h u m a n c a p i t al mana g e m e nt an d b oard di versity… I n rea l e s t a te te rm s , E S G wi l l l ea d to m o re d e man d fo r e f f icient bu ildi n g s a n d re t rof i t s .” “ 2022 U. S . Real Estate M arke t Out l ook” — CB R E , p a ge 9

18 l 202 2 T RE N D S R E P O RT

Urban to Suburban and Back Again N OW T H AT C AU T I O N A RY M E A S U R E S A R E B E I N G MINIMIZED DUE TO A REDUCTION IN COVID-19 CASES, THERE IS A RENEWED INTEREST IN M U LT I FA M I LY H O U S I N G “ D ow ntown m u l t i fam i l y prop ert i es are fi l l i n g b ack u p and o c c u p a n cy rat es are n eari n g pre-pan d em i c l evel s, sp urred by a con fl ue n ce o f fa c to rs: fewe r re st ri c t i o ns o n urban a m e n i t i e s, hi g h e r va cci nat i o n rate s, a g row i n g w i l l i n g n e s s to u s e p u b l i c t ransi t , t h e re o p e ni n g o f co l l e g e camp use s an d m ore worke rs re t urni n g to t h e o ff i ce .” “ 202 2 U. S . R e a l Es ta te Ma rke t O u tlo o k ” — C BR E , p a g e 3 0

I t ’s e s t i mate d t hat “U. S . o ff i ce wo rke rs w i l l sp e n d an ave ra ge of 3 .4 d ays p e r we e k i n t h e o ff i ce g o i n g fo r ward , d ow n a fu ll d ay f rom t h e 4 .4 - p e r-we e k ave ra g e i n 2018 . W h i l e l i vi n g near t h e of f ice m ay n ot b e as i m p ort ant i n t h e fu t u re, i t w i l l still rema in a key con si d erat i on for m any rent ers.”

“2022 U.S. Real Estate Market Outlook” — CBRE, page 32

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Rise in Single-Family Rentals S I N G L E - FA M I LY R E N TA L S A R E N ’ T N E W T O T H E R E A L E S TAT E S C E N E , B U T T H E PA N D E M I C D I D G E N E R AT E A S I G N I F I C A N T INCREASE IN INTEREST DUE TO WANTING MORE PRIVACY

“ Th e sin gle -fa m i l y re n t a l m a rke t wi l l g a i n t ra c t i o n w i t h b o t h re nte rs an d i nve sto rs as m ore mi llennia ls rea ch ch i l d - rea ri n g l i fe s t a g e s. Urban apart m ent operators w i l l rel y m ore on Ge n Z to b ac kfil l t h e res u l t in g va c a n c i es.” “ 2022 U. S . Real Estate M arke t Out l ook” — CB R E , p a ge 32

“ Th e pa n dem ic c rea te d a n u n p rec ed ent ed de m and am o ng rent ers for s p a c e a n d pri vacy, wh ich h o u ses c a n a d d re s s m u ch b e tte r t han apa r t m ent s… Accord i n g to a re ce n t s u r vey of 3 , 30 0 renters on re n tc a fe .com , a s m any as 78% sa id t h ey we re i n te re s te d i n l i vi n g i n a com mu nity o f s i n g l e - fa m i l y h om e s .” htt ps: //www. rentcafe .com / bl og /re ntal - m arket/m a rke ts n apsh o ts/bui lt- to - re nt- si n g l e - fam i l y- h om es - d o u b le in-2022 / — para. 2 an d 3

“ Th e nu mber o f h i gh er- i n co m e Mi ll en ni al s w h o a r e r e nt i ng i nst ea d of b u y i n g a h o m e is o n t h e ri se.” htt ps: //www. rentcafe .com / bl og /re ntal - m arket/m a rke ts n apsh o ts/mi l l en n i al - l i fe sty l e - re n t i n g / — pa ra . 1

Ph o to by Ka ra Ea d s o n U n s p la s h

20 l 202 2 T RE N D S R E P O RT

Smart Buildings T H E PA N D E M I C G E N E R AT E D A D E M A N D F O R S M A RT T E C H N O LO GY T H AT F O S T E R S CO N TA C T L E S S E N T RY “Fro m key less l ocks to s m a r t e l eva tors , i nte l l i g e nt- b ui l d i n g mana g e m e nt sys tems a re like l y t h e f u t u re for m a ny m ult i fami l y d eve l o p m e nt s. [B ri tt De si g n Gro u p] says ‘ po s t- pa n d e m i c con t a c t l e s s e nt r y i s key. We w i l l st ar t to se e this m o re a n d m ore i n m u lt i fa m i l y d e s i g n m ovi n g fo r ward . D evel opers are inco r p o rat i ng h a n d s - f ree ent ry syst em s to g et i n an d ou t of t h e p rem i ses an d pe rso nal l i v i ng s p a c es , rep la c i n g a k ey wi t h t h e wave of a card or key fob.’ ” https: //www. mult i fam i l yexe c ut i ve .com /de si gn - d eve lo p m e n t/d e s ign / 1 0 - d e s ig n - tre n d s s h api n g-multi fam i l y- bui l di n g s- i n-202 2 _o — p a ra . 1 1

2022 TRENDS REPORT l 21

Barkitecture L I F E S T Y L E R E L ATA B I L I T Y I S T H E K E Y TO A CONSUMER’S HEART “ Th e pet ca re in d u s t r y i n N or t h A m e ri ca co nt i nue s to g row, an d peo ple a re p u tt i n g m ore c a re i n to t h e i r p e t s’ l i fe styl e s as th ey t r y to a ccom m od a te for t h i n g s l i ke spat i al sh o r tco mi n g s.

Wi t h m o re peo p l e i n u rba n a rea s a n d l i vi n g i n smal l e r h o m e s an d a pa r t m ent s , i nt egrat ed p et - f rien dl y h om e feat u res are par t i c ul ar l y us ef u l… H om e d e s i g n b ra n d s are a d ap t i n g to t h e n eeds o f pet own e rs wi t h f u rn i s h i n g s t hat are ma d e fo r human use, bu t t ha t h ave p e t- f ri e n d l y fea t u re s t hat al l ow fo r ani mal use to o. T h ese i n cl u d e eve r y t h i n g f rom seat i n g so l ut i o ns to e nter t a inm ent u n i t s .” “ 2022 Tren d Repor t : T h e R oari n g 20’s A re Co m in g Ba ck ” — Tre n d Hunter, page 20 4

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Mail as a Major Amenity W H AT WA S O N C E CO N S I D E R E D TO B E A T R A D I T I O N A L MAILROOM IS NOW BEING CONVERTED INTO DESIGNED AMENITY SPACES “ T h e i n c rea se i n d e l i ve r y- base d co nsum e ri sm i s d i re c t l y i mpa c tin g m u lt i fa m i l y d e si g n, w i t h spa ce s to a cco mm o d ate pa cka g e s of a ll s h a p e s a n d si ze s... ‘Spaci ou s an d m u l t i fu n ct i on i n g m ai l rooms a re a b ig t r en d m ovi n g forward ’… ‘ Th e mai l ro o m i s n o t an a f te r t h ou g ht ; i t i s a majo r am e ni ty.’ M ai l ro o ms are b e i n g d esign ed wi t h l a rg e r l ayo ut s w i t h mult i p l e typ e s o f sto ra g e an d p i cku p a rea s a n d w i t h eye - catchi n g d e si g ns.” h tt ps: //www. mu ltifa m ilyexe c u tive .co m /d e s ign - d eve lo p m e n t/d e s ign/ 1 0 de si g n- t re n d s - s h a p in g- m u ltifa m ily- b u ild in g s - in -2022 _o — p a ra . 5

2022 TRENDS REPORT l 23

24 l 202 2 T RE N D S R E P O RT

Modular Work T H E PA N D E M I C F O R C E D A WO R K- F RO M - H O M E S I T UAT I O N A C RO S S T H E N AT I O N , A N D N OW T H AT I T ’ S B E CO M E PA RT O F A N E W N O R M , D E S I G N O P T I O N S TO A C CO M M O DAT E T H I S F L E X I B L E L I F E S T Y L E A R E I N C R E A S I N G

“Now t ha t wo rk- f rom - h om e c u lt u re i s

“M o d ul ar h o m e o ff i ce syste ms are

l i ke ly to rem a in t h e n orm i n t h e l on g term,

b e co mi n g m o re p o p ul ar as wo rki n g f rom

pe o p l e r e q ui r e at - h om e workst at ion s

h o m e has b e co m e t h e n o rm si n ce COVID -19

th at c at e r to t h eir l if est y les at h o m e.

was d e cl are d a pan d e mi c . Th e se systems

Fea t u res like p ri va cy a n d m od u l a ri ty a re

al l ow for con su m ers to b u i l d offi ces at

i mpo r t a nt fo r p e op l e worki n g f rom h om e

h om e i n ways t h at are si m pl e an d spatially

— pa r t icu la rly for t h os e wi t h fa m i l i e s ,

fu n ct i on al .”

room m a tes, a n d /or s m a l l l i vi n g s pa ce s .” “ 2022 Tren d Repo r t : T h e R oari n g 20’s A re Co m in g B a ck” — Tren d Hun te r, pag e 208

“ 2022 Tre n d R e p o r t: Th e R o a rin g 20 ’s A re Com i n g Ba ck ” — Tre n d H u n te r, p a ge 1 92

2022 TRENDS REPORT l 25

03

Senior Living Trends

Staffing Scramble W I T H I N T H E O V E R A L L H E A LT H C A R E I N D U S T R Y , L A B O R ISSUES WILL CONTINUE TO BE A CHALLENGING ISSUE

“[ T h e] t ra dit io n a l f u l l- t i me em p l oy ee (FT E) wi l l b ecom e a rarer br e e d in senio r l i vi n g com m u n i t i e s a c ross t h e co unt r y.” htt ps: //seni o rh o usi n g n ews.com / 202 2 /01/02 /to p - s e n io r- h o u s in g- tre n d s for-2022 / — para. 42

“ Th e goa l [w ill b e ] to re s p on d to t h e s h i ft i n wo rke r ex p e c t at i o ns an d preferen ce s t h a t h a s occ u rre d d u rin g t h e Covi d pan d e mi c , as p e o p l e hav e reeva l u at ed t h e work- li fe bal an ce t h ey want to stri ke… O t h er p rovi d e rs a l s o wi l l of fe r m o re fl ex i b l e , par t- t i m e an d o n- dem a n d s ch e d u l i n g . Te ch n ol og y w i l l b e key to e nab l i n g th ese ef fo r t s.” htt ps: //seni o rh o usi n g n ews.com / 202 2 /01/02 /to p - s e n io r- h o u s in g- tre n d s for-2022 / — para. 4 6 an d 47

28 l 202 2 T RE N D S R E P O RT

Regional Reset R E G I O N A L O P E R ATO R S W I L L B E G I N TO S H I F T T H E SENIOR LIVING INDUSTRY BY DRIVING OCCUPANCY A N D F O C U S I N G O N WO R K F O R C E S TA B I L I T Y

“ T h e l a s t 12 m o nt hs we re d e f i n e d by t h e ‘ ri se o f re g i o nal s ,’ a s ma ny reg i on al operators rapi dl y g ai n ed scal e t h rou g h a s l ew of acq u i si t i on s an d m an ag em ent t ran si t i on s. Th e n ext yea r wi l l b e ab o ut t h e ‘ re g i o nal re se t ,’ as t h e se p rovi d e rs s t a r t to re shap e t h e i n d ust r y. I n par t i cul ar, re g i o nal s are ex p e c te d to d ri ve o ccupan cy an d wo rk fo rce st ab i l i ty t hro u gh a l oc a l i zed ap p roa ch to sal e s, marke t i n g an d hi ri n g …

Ad d i t i on al l y, ow n e rshi p g ro up s ap p ear to b e i n creasi n g l y awa re of t h e n e e d to m o re cl o se l y al i g n i nte re st s w i t h op e ra tors an d e nsure t hat t h ey are we l l - cap i t al i ze d e n o ugh to i nve s t i n te chn o l o g y.” h tt ps: //se n io rh o u s in g n ews .co m / 2022 /01 /02 /to p - s e n io r- h o u s in gt re n ds- for-2022 / — p a ra . 22 , 23 , a n d 25

Accord i n g to a sur vey co n d uc te d by Lum e nt an d Se ni o r H ou s i n g News, 19% o f par t i ci pant s b e l i eve re g i o nal o p e ra tors wi l l b e t h e majo r b uye rs o f se ni o r h o usi n g asse t s. “ 202 2 S e ni o r H o u s in g O u tlo o k S u r vey R e p o r t” — Lu m e n t a n d S e n i or H ousi n g N ews , p a ge 8

2022 TRENDS REPORT l 29

Increase in Middle Market Th e t ren d fo r 202 1 re f l e c te d “ t h e ra p i d g row t h tra jec to r y o f t h e 75 + m i d d le m a rk et [was] mor e d ram at i c t h a n t h e g row t h of l owi n co m e elderly for t h e f i rs t t i m e i n m e m o r y…

Governm ent-su b s i d i ze d p rog ra m s h e l p prov ide a lterna t i ve s for l ow- a n d ve r y l owi n co m e fa m ilie s , a n d t h e re a re L i fe P l a n Com m u nit ies for u p p e r m i d d l e - a n d u p p e ri n co m e elders, b u t t h e 5 6% of ol d e r a d ult s tha t a re in t h e m i d d l e m a rke t a re fa l l i n g between t h e cra cks .” “ Seni o r Ho usi n g Tre n ds: 202 1” — Love & Com p a ny, p a ge 20

However, t h e t re n d t h i s yea r i s s h i f t i n g to wh ere “m o r e se n i o r l iv in g p rov id ers w i l l m ake go o d o n t he i r p la n s to s erv e m i d d le- m arket cons um e rs i n 2 0 2 2 .” Accord i n g to t h e Se ni o r Li vin g N ews 202 2 S e n i or H ou s i n g O u t l oo k Sur vey Repo r t , m ore 4 0 % of p rovi d e rs pl an to repo sit io n ex ist i n g m a rke t ra te com m uni t i e s to ser ve t h e mi d d l e m a rke t , wh i l e 26% p l an to develo p n ew m i d d l e - m a rke t u n i t s . https: //seni o rh o u si n g n ews.com / 202 2 /01/02 /to p s e ni o r-h o usi n g- t re n ds- for-202 2 / — para. 18 “ 2022 Seni o r Ho u si n g Out l ook S ur vey R e por t” — Lum ent an d Seni or H ousi n g N ews, pag e 10

30 l 202 2 T RE N D S R E P O RT

Memory Care Boom THOUGH MEMORY CARE PROGRAMS HAVE E X P E R I E N C E D D I F F I C U LT Y T H E PA S T F E W Y E A R S , THEY ARE NOW POSITIONED TO THRIVE

“Mem o r y ca re a d d e d t h e m os t occ u pa n cy o ut o f any se nio r h o u sin g typ e b e twe e n t h e s e con d an d t hi rd qu a r ters o f 202 1 … In n ovat ion i n mem ory care al so i s playi ng a ro l e in at t ra c t in g res i d ent s . De sp i te — o r d ue to — t h e cha lle n g e s t h a t m e m or y c a re has fa ce d , so m e prov iders have i nve s te d t i m e a n d m on ey i n re ce nt years i n reva mpin g t h e i r m e m or y c a re of fe ri n g s, an d t h ey are poi sed to be rewa rd e d .” htt ps: //seni o rh o usi n g n ews.com / 202 2 /01/02 /to p - s e n io r- h o u s in gt ren ds- fo r-2022 / — para. 6 5 an d 74

2022 TRENDS REPORT l 31

Customized Care and Personalization I N A N A G E O F P E R S O N A L I Z AT I O N , I T W I L L B E I M P E R AT I V E T H AT S E N I O R L I V I N G CO M M U N I T I E S C R E AT E C U S TO M I Z E D E X P E R I E N C E S F O R R E S I D E N T S

For exa m ple, M a t h e r — a l a rg e s e n i or l i vi n g p rovi d e r d e d i cate d to perso na liz a t i on — c rea te d a n ew we l l n e ss f ram ewo rk base d o n this qu est io n: “ ‘At a t i m e wh e n vi r t u a l l y eve r y t hi n g e l se aro un d us ca n be cu stom i ze d , s h ou l d n’ t ou r wel l n e ss p l an b e as we l l ? ’ Mat he r ’s ‘ p e rso n - c ent ric w el ln es s m odel ’ i s m eant to rep l ace th e t yp i c al ‘s i x d im en s ion s of w ell n es s’ t h at m any provi ders u se to o r g ani ze t h eir res id ent ex p erien c e p rog ram s. To d ri ve t h e m ore in div idu a l i ze d a p p roa ch , Ma t h e r i s d eve l o p i n g a we l l n e ss assessm ent to ol a n d i s e n g a g e d i n a we l l n e ss coa chi n g i ni t i at i ve , e nv isio nin g t ha t s u ch coa ch e s wi l l p l ay an i mp o r t ant ro l e i n wo rkin g w it h re s i d e n t s on t h e i r u n i q u e we l l n e ss p l ans.” https: //seni o rh o u si n g n ews.com / 202 2 /01/02 /to p - s e n io r- h o u s in g- tre n d s for-2022 / — para . 81, 84 – 86

32 l 202 2 T RE N D S R E P O RT

On-Site Primary Care Is a Must THERE IS A SHIFT FROM ON-SITE PRIMARY CARE SERVING AS AN OPTIONAL AMENITY TO BEING A N E E D E D H E A LT H C A R E A S S E T I N C O M M U N I T I E S

“ I n 202 2 , on - si te pri m ary care w i l l reach a t i ppi n g poi nt , g oing f rom a ‘ n ic e -to-h ave’ to a ‘m u st h ave.’ Th e t i p p i n g p o i nt wi l l a rri ve for seve ral reaso ns. O n e i s t h e co nt i nual g row t h of Me d i c a re Ad vant a g e (M A) w i t hi n t h e se ni o r l i vi n g se c to r.” h tt ps: //se ni orh o u s in g n ews .co m / 2022 /01 /02 /to p - s e n io r- h o u s in g - tre n d s for-202 2 / — p a ra . 5 4

“ Con s u m e r ex p e c t at i o ns al so w i l l d ri ve m o re se ni o r l i vi n g p rovi d e rs to o ffe r o n- si te p ri mar y care . Re si d e nt s an d t h e i r l ove d on e s are m o re att un e d to h ealt h care o ffe ri n g s i n l i g ht of Covi d -1 9, an d l i mi t i n g ex p o sure to crowd s i n d o c to rs’ o ff i ces a n d h os p i t a l s has n eve r b e fo re b e e n such a hi g h p ri o ri ty… As t h e s en i o r l i vi n g provi der becom es a care coordi n ator, i t als o st a n d s to reason t h at sen i or l i vi n g com m u n i t i es i n creasi n gly b eco m e h u bs for a vari et y of servi ces, n ot j u st p ri m ary care.

H ea lt h sys te m par t n e rshi p s t hat b ri n g co n ci e rg e - styl e care into s e n i or l i vi n g are re sp o n d i n g to t hi s i mp e rat i ve .” h tt ps: //se ni orh o u s in g n ews .co m / 2022 /01 /02 /to p - s e n io r- h o u s in g- tre n d s for-202 2 / — p a ra . 5 9 a n d 6 2

2022 TRENDS REPORT l 33

34 l 202 2 T RE N D S R E P O RT

Occupancy and Pricing Innovation N E W P R I C I N G S T R AT E G I E S W I L L A N C H O R A C RO S S T H E INDUSTRY AS PROVIDERS SEEK TO INCREASE OCCUPANCY

“In recent yea rs , m ore p owe r f u l b u s i n e s s i nte l l i g e n ce (B I ) capab i l i t i e s have st a r ted to e n a b l e a n ew a p p roa ch to se ni o r l i vi n g p ri ci n g … [ Prov iders] a cros s t h e i n d u s t r y a re p u s h i n g to re g ai n o ccupan cy w hi l e al so pro tec t in g m a rg i n s t h a t a re u n d e r i n cre d i b l e p re ssure … [ Th e n ew B I ca pa bili t i e s ] wi l l e n a b l e p rovi d e rs to ‘unb un d l e’ t h e i r p ri ci n g , w hich sh o u ld d ri ve s a l e s by a l l owi n g ope rato rs to o ffe r p ro sp e c t s m o re c usto mized pa cka g e s , wh i l e a l s o e n s u ri n g t hat o p e rato rs’ reve nue cl o sely a ligns wi t h wh a t t h ey a re d e l i veri n g to re si d e nt s. Dat a-dri ven , unb und l e d p r i c i n g a ls o w il l g a i n im p ort an ce as m ore m i ddl e-m arket pro d uc t co m e s to m a rk et. S e tt i n g ra te s at t h e ap p ro p ri ate l eve l an d offerin g so m e a l a c a r te s e r vi ce s a re e s p e ci al l y i mp o r t ant i n t h e se em ergin g m o d e l s , wh i ch a re roote d i n ti g ht ex p e nse mana g e m e nt w hile o f ferin g a p rod u c t t h a t re s i d e n t s se e as a g o o d val ue .” htt ps: //seni o rh o u si n g n ews.com / 202 2 /01/02 /to p - s e n io r- h o u s in g - tre n d s - fo r-2022 / — para. 32 , 34–36

2022 TRENDS REPORT l 35

04

Student Living Trends

Regional Growth A C C O R D I N G T O T H E N AT I O N A L M U LT I FA M I LY H O U S I N G COUNCIL, STUDENT HOUSING IS SET TO EXPERIENCE SIGNIFICANT GROWTH

NMH C est im a te s t h a t “ t h e s t u d e n t h ousi n g marke t w i l l g row f rom a to t a l o f 8 .5 m i l l i on b e d s i n 2020 to 9. 2 mi l l i o n by 203 1 (an i n c rea se o f 734 ,0 0 0 b e d s ) , or a n av era ge an n u al i n crease of 0 . 8% pe r ye ar, a n d t h a t m os t of t h a t g row t h w i l l t ake p l a ce i n p ub l i c fou r-yea r u nive rs i t i e s .” “ T h e Future o f U. S . S t ude n t H ousi n g De m an d ” — N MH C W h ite Pa p e r, J u ly 2021, page 5

However, lo ca t i on wi l l b e a c ri t i c a l fa c to r to co nsi d e r w h e n i nvest in g: “Re gi o n a ll y , h a l f of t h e 18 - to 2 4 -year-ol d popu l at i on [cu r r e nt l y] r e s id es in t h e So u t h At l a nt i c, Paci fi c an d East Nort h Cent ral ar e as of t h e U.S.” “ T h e Future o f U. S . S t ude n t H ousi n g De m an d ” — N MH C W h ite Pa p e r, J u ly 2021, page 23

“Texas , by far , h a s t h e la rgest u p com i ng you n g p op u l at i on — t h e pop ul at i o n i n t h at a ge ra n g e is ex p ec ted to i n crease by 3. 6% , or m o r e t han 10 0 , 0 0 0 p eo p l e. S i m i l a rl y, Neva d a, Washi n g to n an d M inn eso t a a re ex p e c te d to ex p e ri e n ce si g ni f i cant g row t h.

In co nt ra st , seve ra l N or t h ea s te rn s t a te s have o l d e r, l owg row t h po pu la t i on s . A b s e n t i n - m i g ra t i on, t h e 18 - to 24 -yearol d po pu la t io n wi l l s h ri n k i n N ew York , M assa chuse tt s an d Pe nnsy lva nia . I n te re s t i n g l y, t h e s e s t a te s are h o m e to so m e o f t h e hi g h est qu a lity p os t- s e con d a r y e d u c a t io nal i nst i t ut i o ns i n t h e wo rld.” “ T h e Future o f U. S . S t ude n t H ousi n g De m an d ” — N MH C W h ite Pa p e r, J u ly 2021, page 24

38 l 202 2 T RE N D S R E P O RT

Shifting Demographics T H E I N C R E A S E O F P O P U L AT I O N F O R CO L L E G E -A G E STUDENTS WILL CONTINUE TO BOOST THE NEED FOR STUDENT HOUSING “ 4 6 mi ll ion peopl e wi l l reach col l eg e ag e i n t h e U. S. over t h e n ex t 10 years. Thi s d e m o g rap hi c t re n d p re d i c t s t h e d e m a n d fo r st ud e nt h o usi n g w i l l re mai n ro b ust , si n ce t his is on l y a s l i g ht d e cl i n e f ro m t h e p eak d e ca d e o f t h e p revi o u s g e n e ra t i on. Howeve r, t h e d e m o g rap hi c p ro f i l e o f st ud e nts wi l l ch a n g e co nsi d e rab l y, so st ud e nt h o usi n g ow n e rs w i l l n e e d to be m o re d i sce rni n g .” “ S t r uc t ura l C h a n g e s in S tu d e n t H o u s in g D e m a n d ” — N MH C W h i te Pape r, J ul y 2021 , p a g e 7

“ G e n Z i s m o re d i ve rse t han p ri o r g e n e rat i o ns. O n e i n fo u r m e m b e rs o f t hi s g e n e rat i o n are Hi spani c , 14% are B l a ck an d 5% a re Asi an. Over t h e n ex t fi ve years, al l n et g row t h i n the co l leg e- a g ed p op u l at i on w i l l b e from peopl e i d ent i fyi n g as H i s p a n ic an d Ot h er races.” “ S t r uc t ura l C h a n g e s in S tu d e n t H o u s in g D e m a n d ” — N MH C W h i te Pape r, J ul y 2021 , p a g e 9

2022 TRENDS REPORT l 39

Affordability AFFORDABILITY WILL CONTINUE TO BE A PRIMARY FOCUS F O R S T U D E N T H O U S I N G TO A C CO M M O DAT E T H E D I V E R S I T Y O F H O U S E H O L D I N CO M E S A N D P O S T- PA N D E M I C I M P L I C AT I O N S

“The i nc r e as e d d i v ers it y of t h e st u d ent po p ul at i o n co u ld m a k e af fo rd a b il it y more imp o r t ant sin ce t h e m e d i a n i n com e i s o nl y $5 1,4 0 0 fo r H ispa n i c h ou s e h ol d s a n d $ 41, 3 61 for B la ck h o u se h ol d s , com pa re d to n on Hi spa nic w hite h ou s e h ol d s ($70,6 42 ) a n d Asia n h o u seh ol d s ($ 8 7,1 9 4 ) .” “ Struc tural C h an g e s i n S t ude n t H ousi n g De m a n d ” — N M HC Whi te Pape r, J ul y 202 1, pag e 10

“[ T h e] COVI D ‐1 9 pa n d e m i c wi l l [a l s o] l i ke l y have lo n g‐la st i n g i m p l i c a t i on s on t h e s t ud e nt h o u sin g m a rke t , p rim a ril y i n t h e fo rm of re d uc e d st at e b u d g et s fo r p u b li c s c h ool s, th e m ost co nsi st ent gen erators of st u d ent h ous i ng d e m an d. T h i s wi l l l i ke l y p u t u pward pre ssu re o n t ui t i on ra te s , wh i ch wi l l c reate hi g h er dem a n d for a f ford a b l e h ou s i n g .” “ Struc tural C h an g e s i n S t ude n t H ousi n g De m a n d ” — N M HC Whi te Pape r, J ul y 202 1, pag e 2 5

40 l 202 2 T RE N D S R E P O RT

Public and Private Partnerships P U B L I C- P R I VAT E PA RT N E R S H I P S , A L S O K N OW N A S P 3 S , M AY B E T H E A N S W E R TO B R I N G I N G A D D I T I O N A L FUNDING TO THE STUDENT HOUSING SECTOR

“ While t h e lo n g - te rm i m pa c t of t h e

A re nt Fox — a D.C .- base d l aw f i rm t hat

COVI D -19 pa n d e m i c on on - c a m p u s h ou si n g

re p re se nt s e d ucat i o nal i nst i t ut i o ns,

occ u pa n cy a n d d e n s i ty i s ye t to b e s e e n,

i nve sto rs an d un d e r w ri te rs i n e d ucat i ona l

a r e d uc t i o n i n rev en u e f rom t h e c u rrent

f i nan ci n g t ransa c t i o ns — p redi ct s t h i s P 3

re c e ss i o n w i l l m a k e it d i f f ic u l t fo r s c h ool s

p art n ersh i p t ren d wi l l cont i n u e as co lleges

to i m p l e m e nt s p en d i n g p rog ra ms fo r

d eal w i t h con st ru ct i on cost i n creases and

h ousi ng w hich m ay b e n e e d e d to i m p rove

l ab or sh ort ag es.

th e h ea lt h qu al i ty of b u i l d i n g s a n d to att ra c t n ew st u d e n t s . T h i s m ay i n c rea s e t h e n eed fo r u nivers i t i e s to i m p l e m e n t p u b l i cpriva te pro gra m s .”

h ttp s : //www.s tu d e n th o u s in gb u s in e s s .co m / h e a lth - co m fo r t- a n d - a ffo rd a b ility- a re - to p - ofm in d - fo r- s tu d e n t- h o u s in g- d eve lo p e rs - a n dre s id e n ts / — p a ra . 1 3

“ T h e Future o f U. S . S t ude n t H ousi n g De m an d ” — NMHC Whi te Pap e r, J ul y 202 1, pag e s 27 – 2 8

2022 TRENDS REPORT l 41

Graduate Student Housing NOT ALL STUDENTS WHO ENTER COLLEGE ARE FRESHMEN, AND PLANS NEED TO BE IN PLACE TO MEET THE INCREASE FOR AGE 25-PLUS ENROLLMENT

“Gi ven a n in crea s i n g d e m a n d for e d u c a te d jo b s an d t h e l arg e mi llennia l po p u l a t i on n ow a g e d 24 to 40, a reaso nab l e arg um e nt cou ld be m a de for f u rt h er i n c rea s i n g en rol l m ent i n post bac c al aur e at e p ro g ra ms.” “ T h e Future o f U. S . St ude nt H ousi n g De m an d ” — N MH C W h ite Pa p e r, J ul y 2021, page 26

NMHC pro jec t s u n d e rg ra d u a te b e d s a t p ub l i c fo ur-year i ns t it u t io ns “to i n c rea s e by 4 4 8 , 0 0 0 f rom 2 0 2 0 t h rou g h 2 0 31, wit h anot he r 112 , 0 0 0 n eed ed fo r g ra d uat e st u d ent s,” w h e reas at priva te fo u r-yea r u n i ve rs i t i e s , t h e re i s an ex p e c t at i o n t hat “ th e dem a n d fo r n ew b e d s [ wi l l ] p ri m a ri l y co m e f ro m g ra d uate progra ms, w h e re a n a d d i t i on a l 9 6 ,0 0 0 b e d s w i l l b e n e e d e d .” “ T h e Future o f U. S . St ude nt H ousi n g De m an d ” — N MH C W h ite Pa p e r, J ul y 2021, page 5

42 l 202 2 T RE N D S R E P O RT

Desire for MixedUse Buildings TO S TAY I N L I N E W I T H CO M P E T I TO R S A N D K E E P U P WITH THE DEMAND OF RESIDENTS, FACTORING IN MIXED-USE WILL BE A PREFERRED AMENITY

“ G oi n g for ward , t h o se l o o ki n g to d eve l o p o r a cq ui re st ud e nt h ou s i n g m ust i n creasi n g l y an d p roa c t i ve l y m e e t t h e d e man ds of tod ay ’s s t ud e nt s fo r conven i en ce t h rou g h am en i t i es, d esign a n d a d va n ced t ech n ol og i es. Fur t h e r, as an ex te nsi o n o f t h e g rea te r t re n d i n real e st ate , st ud e nt h o usi n g i s i n creasi n g l y b e i n g p os i ti o n e d at t h e ce nte r o f mi xe d - use d eve l o p m e nt s tha t a l s o fea t u re a co mb i nat i o n o f co mm e rci al , o ff i ce , h o sp i t al i ty a n d ot h e r u s e s . B y nat ure , mi xe d - use p ro je c t s are p e r fe c t l y sui ted to s t u d e n t h ousi n g , b e cause st ud e nt s — e sp e ci al l y t h e curre nt Gen Z g e n e ra t i on — d e si re to have t h e wo rl d at t h e i r f i n g e r t i p s a n d b e i n t h e m i d d l e o f t h e a c t i o n. h tt ps: //www. n a a h q .o rg /n o d e / 3 6 8 1 2 /a r ticle /m ixe d - u s e - m a ke s - s e n s e st ude n t- h ous in g — p a ra . 1 3 – 1 5

2022 TRENDS REPORT l 43

05

Hospitality Trends

Post-Pandemic Hospitality CONSUMER BEHAVIOR WILL CONTINUE TO BE IMPACTED F RO M T H E P E R S P E C T I V E O F W H AT WA S E N D U R E D DURING THE PANDEMIC “As co nsu m ers l ook to re s u m e t h e i r n ormal l i ve s p re - pan d e mi c , th e psych o lo gi c a l i m pa c t f rom ex p e ri e n ci n g t h e wo rst o f t h e pan dem ic w ill s t i l l a f fe c t t h e i r con s u m p t i o n b e havi o rs. Th ese ind i v i d ual s ar e t u rn in g to b ra n d s t h at pri ori t i z e safet y as m u ch a s t hey d o exp eri en c e a n d s erv ic e, s o t h ey can feel com fort ab l e i n t h e pro cess of re s u m i n g eve r yd ay l i fe.”

“2022 Trend Report: The Roaring 20’s Are Coming Back” — Trend Hunter, page 59 “ Th e h o spit a lity i n d u s t r y wi l l t a ke s om e t i m e to ful l y re cove r f rom t h e eco n o m i c h i t s i t ’s t a ke n a s a re sult o f t h e COVI D -19 pan dem ic , bu t [ i t ’s ] g ea ri n g u p for a n u p t i ck i n d e man d a nyway. N ew m ea s u res a n d p ro d u c t s t hat p ri ori t i z e safet y a nd s ani t i zat i o n a re in c rea s in g ly im p ort ant to b usi n e sse s an d c us to m ers in t h i s s pa ce .”

“2022 Trend Report: The Roaring 20’s Are Coming Back” — Trend Hunter, page 59

P h oto by Si m on Kare m an n o n U n s p la s h

46 l 202 2 T RE N D S R E P O RT

Embracing Bleisure B U S I N E S S A N D L E I S U R E T R AV E L W I L L C R E AT E BLEISURE OPPORTUNITIES WITHIN THE H O S P I TA L I T Y A N D T R AV E L I N D U S T RY

“ B u s i n e s s an d co nve nt i o n t rave l w i l l sl ow l y re b o un d , w i t h ‘b l e i s u re’ b e co mi n g m o re co mm o n as b usi n e ss t rave l , st i ll l e s s f re q ue nt , w i l l i n cl ud e addi t i on al l ei su re t ravel d ays.”

“2022 U.S. Real Estate Market Outlook” — CBRE, page 36 “ Th e a b i li t y to work from h om e i s profou n d l y, an d p erm a n e nt l y, ch an g i n g t h e way w e t ravel . M o re l e ni e nt of f i ce p o l i ci e s m ean many wo rke rs can t rave l any t i m e , even d u ri n g b usy wo rkwe e ks, as l o n g as t h ey can hi t d ea d l i n e s f rom fa r af i e l d . That , i n t urn, has ma d e i t easi e r fo r p e o p le to t rave l m o re f re q ue nt l y an d fo r l o n g e r am o unt s o f t i m e .” htt ps: //www.b lo o m b e rg.co m /n ews /a r ticle s / 2022- 02- 07/ h ow-wo rki n gf rom - h om e -w ill- p e rm a n e n tly- ch a n g e - th e -wa y-we - tra ve l — para. 3

“ B e c a u s e re m o te wo rke rs re p re se nt a w h o l e n ew marke t for t h e t rave l i n d ust r y to cap t ure , accom m odat i on s p rovi d ers w il l b e ra ci n g to m eet t h ei r n eed s — i f t h ey have n’ t d o n e s o a l rea dy. Fo r l ap to p l ug g e rs, h o m e re nt al s have t h e u p p e r h a n d … b e cause t h ey o ffe r spa ce to sp rea d o ut an d to s e pa ra te wo rk f ro m p l ay.” htt ps: //www.b lo o m b e rg.co m /n ews /a r ticle s / 2022- 02- 07/ h ow-wo rki n gf rom - h om e -w ill- p e rm a n e n tly- ch a n g e - th e -wa y-we - tra ve l — para. 19

2022 TRENDS REPORT l 47

Resort and All-Inclusive R E S O RT A N D A L L- I N C LU S I V E D E S T I N AT I O N S W I L L CO N T I N U E TO TO P T H E L I S T A S T H E M O S T I N - D E M A N D LO C AT I O N S A S T R AV E L P I C KS U P

Th o u gh t ravel i s ex p e c te d to i n c rea s e t hi s yea r, “[t h e] ben e f i t s wi l l n ot b e u n i form .

R eso r t s a n d al l - in c lu s i v e d est in at i o n s wi l l cont i nue to b e st ron g p erfo rm ers in 2 02 2 as trave l e rs se e k s im p l ic it y a n d p ri c e c er t ai nt y…

Ha rder-hit ma rke t s l i ke S a n Fra n c i s co a n d New Yo rk , w it h R evPA R [ reve n u e p e r avai l ab l e room ] st ill down 6 1 % a n d 5 6% , re s p e c t i ve l y, com pa red w it h 201 9, m ay b e n e f i t m ore i n 202 2 .” “ 2022 U. S . Real Estate M arke t Out l ook” — CB R E , p a ge 35

P h otos by J ay We n ni n g to n a n d C h e ls e a Ga te s o n U n s p la s h

48 l 202 2 T RE N D S R E P O RT

Year of the GOAT AFTER EXPERIENCING LOCKDOWNS, CANCELED TRIPS, T R AV E L R E S T R I C T I O N S , D E L AY E D C E L E B R AT I O N S , A N D M O R E , CO N S U M E R S A R E LO O K I N G F O R G OAT- S T Y L E VA C AT I O N S Acco rdin g to Ex p e d i a’s 202 2 Trave l Tre n d s Re p o r t , t h ey are d e cl ari n g t hi s year wil l b e f ul l of t rav el p u rs u it s in t h e G OAT cat eg ory — Great est of A l l T ri ps — tha t inv ite “ t ran s form a t i ve a n d m ea n i n g ful t rave l ex p e ri e n ce s.” https: //n ewsro o m.ex pe di a.com / 202 1-11-3 0 -T h e - GOAT- m in d s e t- Ex p e d ia - reve a ls -2022s b iggest- travel - tre n d

In a n Ex pedia - con d u c te d s u r vey of 1 2 ,000 t rave l e rs i n 12 co unt ri e s, re sult s sh owed t ha t 6 8% of re s p on d e n t s a re p lan n i n g to “ g o bi g ” on t h ei r n ex t t ri p, wi t h 4 0 % w illin g to s p l u rg e on f u t u re t rave l s. As a re sult , Ex p e d i a nam e d t h e desire fo r excit i n g a n d ex t rava g a n t t ri ps t h e b i g g e st t rave l t re n d o f 2022 . https: //n ewsro o m.ex pe di a.com / 202 1-11-3 0 -T h e - GOAT- m in d s e t- Ex p e d ia - reve a ls -2022s b iggest- travel - tre n d — para. 1 an d 6

2022 TRENDS REPORT l 49

50 l 202 2 T RE N D S R E P O RT

Back to Business as Usual N OW T H AT T H E H O S P I TA L I T Y I N D U S T RY I S R E T U R N I N G TO A PRE-PANDEMIC FLOW, THE FOCUS WILL BE ON R AT E S I N S T E A D O F O C C U PA N C Y “ For h ote l s t hat have b e e n l i mi t i n g o ccupan cy l eve l s an d a m e n i t i e s to st ay o p e n, w e ex pect to see l ow er operat i n g ma rgi n s b u t st ron g cash fl ow g rowt h , as a cce l e rat i n g to p l i n e t re n d s w i l l b e par t i al l y o ffse t by wa g e p re ssure s an d t h e re s u m p t i on o f n o rmal am e ni ty an d se r vi ce l eve l s. O ve ral l , h otel own e rs wi l l wo rk to d ri ve rate s i nstea d o f chasi n g o ccupan cy.” “ 202 2 U. S . R e a l Es ta te Ma rke t O u tlo o k ” — C BR E , p a g e 3 6

2022 TRENDS REPORT l 51

W W W.T H E LY S T. C O M

1 1 0 Wi l d B a s i n R oa d , Sui te 35 0, Aust i n, TX 78 746 P h o n e: (5 1 2 ) 579 - 5 460 E m ail: co nt a c t @ t h e l yst .co m