Community openings can be a time of excitement and great reward, the culmination of years of planning and construction. As new units are claimed and the property reaches stabilized occupancy, developers, investors and management alike share a sense of well-earned accomplishment.
But, getting there isn’t always easy. As you prepare for lease-up of your new communities, consider these common hurdles:
Market assumptions are assumptions! The market will talk to us from day one if we will listen. Demographic and market studies, data on employers, and other sources, are used to define the target market. In turn, construction-phase and pre-leasing marketing and outreach plans are built on this data. Real-time assessment of inquiries and conversions is how we test these theories. For example, one property, intended to attract young, single, urban professionals, garnered significant interest among young families early in the leasing period. By reassessing market assumptions and adjusting communications during the leasing process, the community was able to more clearly articulate how it addressed the needs of families ultimately taking advantage of a broader market for faster lease-up.
It’s about the Residents, not the amenities! Too often, properties focus their messaging on the amenities they offer, rather than focusing on the Resident experience. Prospective Residents want to know what it will feel like living in their new community, not what they can do. Can they visualize themselves enjoying the experience that the property promises? Our job is to ensure that the depiction of the experience is authentic – so Residents remain happy with the choice of their new apartment home.
The “I can’t sign until I see it” objection. We want to begin executing leases as early in the development process as practical. We want to catch those Prospects who are renewing their lease or planning their move. How do you sell air! Negotiate a phased demonstration plan with all stakeholders that includes hard deliverable dates. Start with detailed renderings, finish boards, and sample materials to touch and feel in the earliest stages, then move to hard-hat tours that show unit layouts in the actual building, and finally offer a professionally-furnished model, where prospective Residents can “see” themselves living. If it’s at all feasible, a sample unit accessible from the ground floor exterior or close to an entrance that is furnished as a mini-model is exponentially more effective than sample boards or hard hat tours!
Units are being delivered when? Despite the best planning possible, there will unexpected occurrences that change the construction delivery schedule – delays leading to later than expected delivery or coming online earlier than planned. Have a contingency strategy for both. Changes will happen; how flexible and prepared you are to handle them will be critical to a successful lease-up.
The challenges of lease-up communities, whether ground-up new construction or repurposed, is what makes these assignments stimulating and fun. Our best advice is to have a trusted team onsite, and an executive management team capable of quickly and effectively dealing with issues as they arise, bringing thoughtful and creative solutions.
-Brent Gratton, CPM® Candidate
Multifamily Real Estate Director
of Multimedia Marketing & Communication