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October 28, 2015
Packages and Problems Pile Up
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As online shopping has exploded, many apartment firms are finding themselves de facto package drop-off, distribution and storage centers for their residents’ deliveries. While some firms consider this service a resident amenity and are experimenting with various solutions to better manage the mounting package deliveries, others are looking to get out of the process together.

Camden Property Trust has taken the toughest stand on package deliveries, announcing management offices would stop accepting parcels at all of its 169 properties nationwide this year. The controversial decision led to news coverage in both local and national media, including on the Today Show and NBC Nightly News and in The Wall Street Journal.

According to a recent NMHC and Kingsley Associates package delivery survey, a typical apartment community can receive as many as 100 package a week—a figure that can double during the holiday season. (Check out the infographic and other takeaways here.)

With this year’s holiday shopping season about to kick off, apartment communities are preparing for another delivery deluge. FedEx expects double-digit gains in holiday shipments this year and three days of double its normal package volume in the wake of Cyber Monday.

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Top News

FINANCE

Senators Warn on Fannie, Freddie Vulnerability

Fannie Mae and Freddie Mac, the leading providers of capital for multifamily loans, remain on shaky ground without permanent housing finance reform. Best-selling author and recent NMHC speaker Bethany McLean added to the calls for lasting fixes for the mortgage giants’ “legitimate problems” in this op-ed. However, economist Dean Baker takes issue with the analysis, citing “serious confusion about Fannie, Freddie and homeownership.”

RESEARCH

2015 Renter Preferences Study Now Available for Presale

Buy now and get a discount on the NMHC and Kingsley Associates’ landmark research report on what apartment residents—a must-have for development, marketing and leasing professionals. With responses from nearly 120,000 renters nationwide, the report offers insights into key community amenities, apartment features and resident trends. Data is available nationally, as well as for 44 cities. Presale ends on Nov. 19.

DIVERSITY

New Report Aims to Spur Women's Advancement in Real Estate

A new report from the Urban Land Institute (ULI), Women in Leadership in the Real Estate and Land Use Industry, offers six strategies to help women advance to executive-level positions within the real estate industry and overcome the challenge of gender inequality. Plus: How one company’s new CEO is making gender equality a priority.

MARKET

Multifamily Keeps Firing on All Cylinders

Apartment demand continues to grow nationally, according to NMHC's most recent Quarterly Survey of Apartment Market Conditions. "The strong apartment industry run-up shows no signs of ebbing any time soon," said Mark Obrinsky, NMHC's SVP of research and chief economist. Dig deeper into the data with Calculated Risk’s Q&A with Obrinsky.

DEALS

Private Investors Dominate So Far in 2015

According to Real Capital Analytics data, private investor groups are getting more aggressive, accounting for 69 percent of deal volume for garden apartments and 49 percent for mid- and high-rise. This strong demand is prompting some REITs to sell. Point in case: Equity Residential is set to sell more than 23,000 apartments to Starwood Capital Group for $5.4 billion
In Case You Missed It
A hand-selected collection of noteworthy articles on a wide variety of issues of interest to apartment executives.
Blackstone Buys Stuyvesant Town-Peter Cooper Village for $5.3 Billion

Millennials’ Top Competition for Condos, Apartments Might Be Mom and Dad

Inside Milestone Apartment REIT’s $1.9B Acquisition

Real-Estate Tech’s Boom Could End in Bust for Some

Rising Construction Share of One Bedrooms

Think Your Rent’s Too Darn High? Just Wait

Millennials: The Forever Renters

NYC Skyscraper Becomes “Unreal” Dorm, World’s Tallest

Designing Your Model Apartment for the Senses

McKinley CEO Makes Case for More Affordable Workforce Housing

Financial Forecast: A Q&A with Willy Walker

City Mulls Building Design Requirements to Reduce Bird Collisions

Multifamily Market Dashboard

Construction Labor Market Lags

Construction employment cratered from 2006 to 2011, losing nearly 2.3 million jobs. Despite economic improvement, the industry’s gained less than half of those jobs back. For multifamily developers, this is leading to construction labor shortages, cost escalations and delivery delays. So, where are all the workers? 

Census Bureau economists Hubert Janicki and Erika McEntarfer recently dove into the agency’s employment data to find out, tracking job-to-job flows among construction workers who became unemployed for more than three months between 2006 and 2009. Here’s what they found:

    1.) About 40 percent stayed in construction, either returning to their former employer or landing with a new one.

      2.) About one-third switched to another industry, often finding work as general laborers, landscapers and truck drivers.

        3.) Few headed off to the booming oil and gas industry, which accounted for less than 5 percent of new jobs for former construction workers.

          4.) Roughly one-quarter of displaced construction workers were still out of work five to seven years after they lost their jobs.


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          About Apartment Wire
          A must-read for top apartment industry professionals, Apartment Wire is a timely review of emerging trends in apartment finance, development, management and technology and more, featuring both exclusive content from NMHC's staff of experts and provocative articles from across the web.
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