Category: Thought Leadership

Aaron Galvin, Founder & CEO of Luxury Living Chicago Realty (LLCR) joins the Real Estate Addicts Podcast to discuss how LLCR is transforming the way luxury apartments are being leased.

Read some of the highlights from the transcript:

HOST(S): So tell us about your firm, ya know, who you are, how you got into real estate, kind of the general background.AARON: Sure. So the name of our firm is called Luxury Living Chicago Realty. We are what I would refer to as a development-focused brokerage working with really two different audiences of people in the multifamily apartment space: so that first audience is people who are looking for apartments in downtown Chicago. So downtown Chicago has a tremendous number of brand new full-amenity high-rise buildings and really has in the entire part of the 12-year history of LLCR and my 16-year career. The other piece of what we do is we work directly with developers to plan and execute marketing and leasing strategy. So that’s become the bigger part of our business over the last 6 years with the proliferation of brand new buildings that have hit downtown Chicago and really hit all the different parts of the country.We get the true renters perspective that we’re able to layer into the development work that we do, you know, we work with people very early on in the cycle of when they’re looking at development deals, looking at pieces of land, and trying to decide if an apartment building or a condo building will work there, and what kind of units they want to put in there. We’re talking about, you know, studios, one-bedrooms, two-bedrooms, what’s going to be the best fit for that demographic. We do a lot with marketing, so we have a fully comprehensive digital and full-service marketing portion of the business where we will do branding and creative services, we create logos, we do identity suites, we build websites, and then that all translates into planning and executing lease-up strategies wherein a typical world, within the apartments space, you’ve seen that people hire a property management property. Typically in some of the larger-scale buildings, you’ll have a property management company on-site, and they’ll have a team of people that are managing the property, and then they’re also leasing the property. In our world, what we do is we work with developers, we work with capital partners, and we partner with property management companies where the property management companies are handling day-to-day operations, so they’re handling tenant requests, they’re coordinating move-ins, they’re working on long term profitability if you will for those assets, and we’re charged with creating a marketing strategy and actually staffing the buildings to be able to lease up those apartments. It’s a very different kind of model, one of the only other places that it actually exists is in New York City. We started this part of the model about 6 years ago and have been able to establish about 40% market share of all the new construction leasing that’s happening in Chicago, so we’ve really carved out a niche within this space.Wwe think it provides incremental value to developers, especially in lease-up, and we’re looking to continue to grow that certainly in Chicago and on a national basis.

HOST(S): What’s the smallest building you will take on or do you typically work in?

AARON: So you know, we have done everything from a nine-unit building, and we’re about to launch a 698 unit building, so it really spans the gamut. Our sweet spot up to this point was really that we’ll call 100-250 unit buildings, in large part because there really wasn’t anyone else who was providing the highest level of service in that asset class. It’s really challenging from a budget standpoint to have enough staff, enough people to handle the amount of demand that comes with what is oftentimes new construction, especially in that lease-up world, when that building is first coming online. So that’s really where we’ve been able to carve out that niche and provide that higher level of service, which is really the foundation of what LLCR was built on. When we started this it was about providing a higher level of service experience for those who were seeking luxury apartments, because it just didn’t exist in the marketplace, and I think you know going all the way back to 2007 and even 2003 when I started in the business, it was all condos, all sales, all the time. Because if you remember the mid-2000s before the world changed in 2008, this was a condo purchase world, and apartments were second fiddle. That is no longer the case, that cache, that stigma, if you will, from renting, is long gone and we’ve been fortunate to be in the right place at the right time. I believe wholeheartedly that luck is where preparation meets opportunity, and that’s how we’ve been able to carve out this niche.

HOST(S): One question – a big feature of a pro forma or underwriting a rental deal is lease-up, so assumptions run about how long we’re gonna hold it for before we reach full occupancy. Can you talk about those timelines, maybe when you start marketing ah as the new construction is evolving, and how long you usually figure before you have the building stabilized?

AARON: That’s a great question. That’s where we provide the most value. It’s about the strategic way in which we’re going to lease-up that building when marketing starts, and when can ultimately plan for stabilization. my sense is that it starts the moment you are thinking about building an apartment building, so so the sooner we can get involved the better, so we can identify things that developers and architects aren’t necessarily thinking about as they’re planning those buildings but pragmatically speaking what we find is that as soon as a building starts construction, and you’re actually moving dirt and you know, for the most part, inconveniencing people around the area, it’s really important to start that messaging so that the neighborhood can become an advocate in what you’re actually building to better that neighborhood, so we believe that as soon as you start construction, the ideal setup is that you actually have signage on the property that’s driving to a what we refer to as a pre launch page or a splash page to gather information on interested stakeholders in that deal because there’s a number of different audiences that are interested when you start building an apartment building, certainly perspective renters are one of them, the neighborhoods another, the media’s yet another, and then there are people who are just interested in real estate that are going to become again social media advocates evangelizing what you are building there. so we have a pretty structured program in the way that we roll out that part of it, we refer to it as our awareness phase, and then the nurturing campaigns that go on throughout that you know we’ll call it 6 months to a year ideally 2 year period to get to where what we call the pre-launch phase. that pre-launch phase is equally as important, you know hopefully you’ve been having conversations with the interested parties and stakeholders along the way and you are now able to create some kind of environment where you’re gonna give VIP access to people who want to actually engage in that apartment. people love behind the scenes looks, they love seeing construction happening, you know we live in this HGTV million dollar listing world where there is a real interest in residential real estate and when you can help people be a part of that story that’s gonna become their story early on, you’re gonna get them very early and that’s really important in a compelling way. so we will create the right kind of questions within that VIP form, we’ve created many different programs for how we can execute that VIP launch strategy to the extent that our goal is to be able to pre-release at least 25% of a building before it opens, and we’ve been able to achieve upwards of 100% of preleasing if executed the right way and done in a line strategy. and you know from a stabilization standpoint, it’s gonna depend on the goals of the developer. it’s one of the most important things that we look at and it’s one of the first things that I mention when first talking to developers is that we’re trying to align renter insights to maximize your goals and understanding your clients goals when looking at these properties is of the utmost importance because this is gonna ebb and flow throughout different cycles. you have merchant builders who want to lease up as fast as possible and offer max concessions and get out, you have longtime holders whose speed is not as important but they want to maximize those rents and manage concessions really well and make sure they have the right tenants who are going to stay and that’s going to dictate unit mix, so understanding those developer goals is really really crucial and we’ve been able to adapt our business to have different kinds of lease-up services to match the goals of our developer clients.

HOST(S): one other question that I would have, you’ve kind of mentioned it already is the stigma of an apartment is past us. it’s the late 90s early 2000s, oh you don’t wanna rent, but obviously through both market changes and things getting better just in general with construction, do you think that, and because housing affordability is obviously an option, do you think that the demand has shifted, and I guess another aspect of it is people just don’t want to own things because they want to be more mobile talking about this whole attention lack of attention to anything, people don’t want to settle down anywhere, so do you think that apartments will continue to be dominant and that’ll just continue to grow?

AARON: yes. you nailed it. people want that mobility. nobody who is certainly in that younger generation wants to own anything. they want to rent their clothing, they don’t want to own a car, so that renter mindset is very much here and I think that there is a place for homeownership in this country, no doubt about it, I own my home, I own investment property. I think there’s definitely a place for that and I think that homeownership will continue to ebb and flow as different economic cycles happen, but that’s still the American dream and I think people really want to work towards that, and there’s a real value in homeownership. I think that what renting does is it allows us to have that mobility, it allows you to try different things, and allows us to have different dynamic life experiences. back when I was a broker, and that was my roots, and I was starting this business, i would say “”listen, if you have an opportunity to move to a major metropolitan city and experience what’s it like to live in a full amenity building and have everything that comes along with that in the apartment, in the building, right outside your door, you have to do that at least once in your life”” and that really resonated with people, and i think what you’re seeing now is because there are not so many condo options and the kind of options at least in Chicago are uber-expensive options or they are 15 years old and need a lot of work, so we used to get the person at the end of their rental cycle and their rental cycle has continued on and on and they’re moving into newer and nicer building in multiple neighborhoods around Chicago. and I think that’s happening from what I understand around the country as well, that as the apartment market continues to grow, there are so many neighborhoods that are coming, giving people the opportunity to live in different neighborhoods if you will.

HOST(S): so you seem to primarily work with class A buildings. if for our listeners out there who invest in real estate, rentals, etc, that might have class B or class C building that they’re looking to make upgrades to either get them up to that next level, push their rent, etc. what are some of the things that you know a developer an investor can do to significantly create value in their building and maybe bring them to the next level that’s not going to cost an arm and a leg and they’re not going to have to gut the units etc?

AARON: that’s where service comes in. let’s talk about the units first right, you have to get the units to a place where they’re going to compete with the class a market. it’s not tremendously expensive, I mean it’s definitely a capital improvement, don’t get me wrong, but it is not tremendously expensive these days to put LVP flooring instead of carpet, put a quartz countertop in, and do some stainless steel and refinished cabinets. those costs have come down so dramatically lately, we see it in the condo deconversion space, there are ways you can do that where you can at least play ball and if you’re not doing that right now, you’re going to get stuck being the sea and never come back. so you have to be willing to do that within a certain subset of units and be able to invest that kind of capital. when it comes to the amenities, that’s really about service and technology, because again those are things that are we’ll call them aspirational for that demographic that wants to rent those kinds of apartments, so they can live in a building that has a nice kitchen, a decent bathroom, but has all the same kinds of tech that a brand new class a does, because that’s not hardware, that’s software, that’s app, that’s you know, can be keyless entry, nest thermostats, if you’re able to make those kinds of changes, they’ll go a long way. and we talked about 1g internet before, you know to upgrade the internet, those are the things that are most important to people when it comes to the aspirational renter who isn’t going to you know to afford the full class a and spend that kind of money but they do want to live in a prime location and have a nice apartment to call home and feel like they have the latest and greatest when it comes to technology.

In luxury apartment buildings, each floor plan attracts a different renter. Whether it’s budget, storage space, household size or current living environment, I have found each unit type needs at least one specific feature to maximize rents. Developers who think about the renter’s perspective when designing floor plans will achieve the most success and the highest rents. Here are the essential features by unit type in luxury apartments:

Studio: Closet Space

Studios are typically rented by single individuals who don’t require a lot of living space. However, their need for storage is critical. A walk-in closet in a studio apartment is the key feature that commands rent premiums. The luxury studio renter is likely budget-conscious and aspirational. This often translates to lots of clothes, shoes and storage needs. If a developer is deciding between a larger kitchen or closet in a studio, opt for the closet every time.

Convertible/Junior One-Bedroom: Separation Of Space

A convertible or junior one-bedroom unit has a definitive separation between sleeping and living space. This renter often seeks a one-bedroom home, but the budget does not allow for a true one-bedroom. When developers creatively make the separation, it helps that aspiring one-bedroom renter appreciate the value of a convertible/junior one-bedroom. Some of the more popular convertible/junior one-bedrooms feature sliding barn-style doors or modular space makers that allow for ample natural light during the day but a good sleeping environment at night. This hybrid unit type often commands high price-per-square-foot rents and leases very quickly. It should also be noted that convertibles and junior one-bedrooms are used interchangeably to describe this type of apartment.

One-Bedroom: Design For Couples

According to comprehensive data on over 1,000 Class A renters in downtown Chicago analyzed by my firm, couples lease over 60% of one-bedroom rentals. These are often couples who start their search seeking a two-bedroom but quickly realize a large one-bedroom to be a better value. While willing to sacrifice the extra bedroom, they will not sacrifice living space or closet space. Thoughtful design is key for appealing to couples when it comes to a one-bedroom floor plan. Corner one-bedrooms are most well-received. Typically reserved for two-bedrooms in most high-rise buildings, corner units can command rent premiums.

Another variation of the one-bedroom is the one-bedroom plus den. A large portion of renters are working from home and appreciate a workspace that provides a separate work area and privacy when taking phone calls or working odd hours.

Luxury Living Chicago Realty (LLCR) analyzed data from the first and second quarters of the year within its portfolio of 18 Class A rental properties where the brokerage firm is the exclusive leasing provider to better understand the dynamics and demographics driving Chicago’s Class A renters.

The data set included demographic information from 936 Class A renters and revealed that Chicago’s Class A renters are 51.7% male and 48.3% female with an average income of $108,214. The top industries of employment include Financial Services, Healthcare, Management Consulting, Technology and Marketing & Advertising. The average apartment in the portfolio is 856 square feet at an average price-per-square-foot of $3.35, up from $3.14 (on an average 821 square feet) in the same period last year. The data also highlighted unique renter profiles, including those relocating to downtown Chicago for new jobs and how couples moving in together are driving rent growth across the city. In addition, the data showed interesting insights by unit type for various demographics.

Relocating to Chicago

Of the 936 renters, 30.4% were moving into Chicago from one of 36 states. Some of the nation’s largest states, California, New York and Texas, brought the most renters to Chicago followed by neighboring midwest states Indiana and Michigan. The average income for all people relocating to Chicago was $132,372 per year a 22% increase, or $24,215, more than the portfolio at large.

“We are frequently asked about who is renting these luxury units and how they can afford them. People moving to Chicago for high paying jobs in the urban core are driving this absorption,” said Aaron Galvin, Founder/CEO of Luxury Living Chicago Realty. “As long as jobs continue to abound in Chicago and companies keep investing in this world-class city, we are going to continue to absorb the Class A apartment inventory.”

Collective thought has always been that “Big 10 graduates” and other Midwestern schools are a large population of renters in Chicago. While that is true, this data shows trends where other large metros such as Los Angeles, San Francisco and New York City are relocating talent to Chicago.

“In comparison, rents are still attainable here compared to the coasts and Chicago has nearly everything you can get in those other major cities,” said Galvin.

Couples Renting Luxury Apartments

Couples occupy 61.1% of the apartments in the data set compared to singles at 26.3% and roommates at 12.6%. More notably, couples also rented 66.5% of all of the one-bedroom units in the 18 properties.

“Couples are driving the rents in Class A apartment buildings as their combined income can afford the largest units with the best views,” said Mark Ziemke, Leasing Strategy Manager at LLCR. “Moving in together is an exciting step for couples coming together. More often than not, they start their search looking for a two bedroom apartment but quickly realize they are not going to save money if they go that route. Instead, selecting a one-bedroom unit with enough living space and storage is the better choice.”

The average rent for a one-bedroom apartment in the LLCR portfolio is $2,587 as compared to a two-bedroom unit at $3,663 per month.

“On average, selecting a one-bedroom apartment saves couples over $1,000 a month. Couples combined incomes average nearly $200,000,” said Ziemke. “They are choosing to live in smaller, brand new units in the most prime location with the best amenities and views.

The LLCR data shows it’s essential for developers to build a healthy mix of unit types. Couple-friendly one-bedroom units featuring walk-in closets and double sinks in the bathroom are vital to attracting the large base of renting couples.

“Combined incomes will allow for higher rent prices and increases upon renewals,” said Galvin. “Couples are also more likely to remain in their unit versus an individual renter.”

Unit Type Demographics

The gender wage gap also plays a part in how Chicago Class A apartments are being rented. While the average income of renters in the data set is $108,214, there is a significant difference between the income of male and female renters. The average male renter earns $125,096 a year, while the average female renter makes $87,948. The income disparity leads to more females leasing studio units (57% female versus 42% male) and more males leasing two-bedrooms (62% male versus 38% female). The data has many implications for how to market specific unit types to the right demographic.

“Understanding who is renting our apartments is crucial to our marketing efforts and helps us inform our developer partners.” said Kaitlin Brewer, LLCR Director of Marketing. “This insight is a key differentiator in our process from the beginning and carries through online with messaging and imagery that speaks directly to our renters’ values”

In 2019, LLCR will help over 3,000 Chicago renters find a new home in the newest Class A apartment buildings, nearly 40% market share of all new construction leasing in downtown Chicago.

A condo deconversion is a real estate transaction in which a savvy investor acquires an entire condo building through a bulk sale to turn into rentals. This investment trend has been seen in Florida and California for a number of years and is picking up steam in other coastal metros and even in the Midwest. In Chicago, where my firm consults, markets and leases condo deconversion transactions, we have seen an increase in international investor groups exploring these opportunities. Condo deconversion is a great alternative to ground-up new construction or repositioning an already existing multifamily asset.

The majority of condo deconversions are in prime locations with great access to neighborhoods, nightlife, dining and cultural attractions.

The biggest hurdle in converting a current condo building to an apartment building is securing enough votes from a condo association to approve the conversion. These are complicated and challenging deals, often taking years to close. However, the payoff can be significant with a sound business plan and team to help execute.

Here are five key elements to consider when planning a condo deconversion leasing strategy:

Respectfully Rebrand

Often, a large-scale condo has a storied history, possibly involving a notable architect, recognizable exterior or catchy name. When rebranding and repositioning the property, it’s important to find a balance between the old branding and new identity. For example, at one well-known property in the growing South Loop market of Chicago, we kept the original building’s name but modernized the logo. The property’s branding and messaging were far ahead of its time, and we wanted to honor the original vision. This kind of acknowledgment is well received, especially if your building’s current residents take great pride in their home and never planned to be tenants. Having them as allies through the process is helpful. By not changing the name or identity too dramatically, you will have a better chance of helping current residents feel like they are part of the process.

Build Excitement

Once you have rebranded, it’s important to build excitement with the right audience. This includes the current residents who may become your long-term tenants as well as potential residents who are often looking for an alternative to a cookie-cutter new apartment building. It’s important to find the unique features of the property: larger square footage, unique duplex layouts, custom finishes. Renters do still gravitate toward renting a condo over an apartment because they want something unique; however, when renting from an individual landlord, the level of service is an unknown. A condo deconversion provides renters with the best of both worlds. They can enjoy the size and location of a deconverted condo building with a professional multifamily management company. Capturing this audience early in the process with sneak peek renderings or a “VIP resident event” will get the buzz going slightly ahead of leasing.

Developers are always looking to maximize the price per square foot of each apartment unit to strengthen their multifamily investment. This is one of the reasons why micro units are so appealing to developers, as they command a very high price per square foot in many markets across the country. Larger, ultra-luxe units also command a similarly high price per square foot, yet are less frequently deployed in new developments. To know which is a better unit to build, we must first look at the renter profile of each apartment type.

Who is renting micro units?

As rents have increased in metropolitan areas, renters are making a conscious choice to live in smaller apartments to be in the most desirable neighborhoods. Being centrally located to work, restaurants and nightlife is important to luxury apartment renters. Typically ranging from 250-400 square feet, a micro unit lifestyle is not for every renter. This renter profile is often a business professional who is splitting their time between cities and who prefers not to stay in hotels, or someone looking to pare down and live clutter-free. Budget-conscious renters who value location above all else are also attracted to micro living.

Often, for the same rental price in an alternative location in a city, a micro-unit renter could live in an updated, larger apartment. However, the mindset of a micro-unit renter is quality over quantity, and community-building amenities are crucial to micro apartments. When units get smaller, the common space becomes more important. Micro renters are seeking spaces to work and socialize. The most successful micro-unit developments offer great community-building amenities like full-service gyms, on-site food and beverage and co-working spaces.

Who is renting large, ultra-luxe units?

These apartment units range from 1,800 to 3,500-plus square feet and have a unique renter profile. The most common renter demographics for this unit type are empty-nesters coming from affluent suburbs, high-end professionals who want to retain anonymity by renting versus owning or families looking for larger space in an urban environment. Regardless, income levels are high, and this is a renter by choice.

To appeal to these renters, minimize the need to “upgrade” upon move-in. White-glove service is essential, along with custom-designed finishes, high-end chef’s quality kitchens and abundant living space. The empty-nester renters are typically coming from 5,000-plus-square-foot homes. Developers need to utilize the space to amplify the living room with dining area and include a master suite. The master suite must accommodate larger-scale furniture and provide impressive closet space and a “wow” factor master bath. Ideally, at least two bedrooms will comfortably accommodate a king-size bed.

This renter will pay for curated programming and service that allows them to have a hassle-free living experience. Building amenities are important, but the service provided by the management team, including concierge, resident service coordinator and highly professional door staff, is an attribute this renter demographic seeks.

In the multifamily industry, marketing and leasing are typically executed by two different teams from two different companies. With advancements in digital marketing and customer relationship management (CRM) tools, taking a lead through the sales funnel to a signed lease is much more effective when marketing and leasing are under the same roof. Multifamily developers need to modernize their marketing and leasing to improve an apartment’s overall leasing success. From brand consistency to lead generation to workflows, multifamily developers can integrate marketing and leasing from before construction begins through after a property is fully stabilized.
Brand Consistency

Luxury apartments are a competitive asset class, and today’s renters have more options than ever when selecting an apartment. Whether the prospective renter is visiting the property website, looking at Instagram posts, being greeted by the leasing team, smelling the signature scent of the lobby or selecting a snack from the model unit kitchen, it is critical that everything connects and reflects the same messaging, tone and other brand characteristics.

Marketing must share the brand guidelines and the development’s story and vision with the leasing team to create a consistent brand experience from start to finish. The leasing team needs to understand why branding choices were made, and the marketing team should share the process that was taken to develop the branding and how that connects back to the property. These details are what makes an authentic voice and identity that a prospective renter can align with. Similar keywords and themes must be shared across marketing and sales platforms as well. Consistency is critical for building a strong brand identity for the apartment.

Lead Generation

I believe there needs to be a shift in mindset about leads. Instead of asking, “How many leads were generated from the campaign?” strive to know how many qualified leads went through the sales funnel. It is important to set goals and strategies for both the marketing and leasing teams to generate leads. The leasing team should be converting a strong majority of existing leads, generated by marketing, instead of focusing on looking for more new contacts. Marketing should be developing a website that’s optimized for conversions, not only aesthetics. The integration with a CRM and ease of “”schedule a showing”” functionality contributes to a significant source of leads. Marketing should also be focused on driving traffic to the website by streamlining internet listing services (ILS). These platforms are huge traffic drivers, and the attention that goes into specific platforms and listing strategy is critical to lead-generation success.

As an example, the leasing team is usually present in directing photo shoots and then determines the order of the photos on an ILS sites. The marketing team should also be involved in this process to help keep the brand consistent and to optimize the listings. Marketing and leasing need to be on the same page about pricing and availability so that unavailable units are not being advertised. Marketing should also be optimizing paid search campaigns on Google and social channels to improve conversion rates. The leasing and marketing teams should also share information back and forth about what is driving leads and what features are closing sales to continue to improve on the messaging and effectiveness of both groups.

Once an apartment building reaches 90% occupancy, it is considered a stabilized asset and no longer in lease-up. Whether the investors who own the building are developers hoping to sell once it has been stabilized or long-term investors, renewal percentage and stabilized rent trends are key ingredients to the financial health of a building. One thing every investor has in common is that they are all looking to bump rents, and the renewal strategy sets the stage for how much the rent can be increased year over year. Investors should continuously evaluate their methodologies and consider the most innovative ways to manage the renewal process to bump rents and minimize vacancies. Following are the most effective strategies I’ve seen for renewal at a multifamily property.

Analyze The Lease-Up

Before venturing into renewals, take a step back and look at the lease-up. Which units were the hardest to lease? Plan to allocate concessions to these units and consider not bumping the rents as much on these floor plans as others. Then, ask what concessions really drove leases. Were renters more interested in a $100 “look and lease” gift card or one month of free rent? Knowing which concessions worked best will help you budget for concessions moving forward. Looking back at the lease-up process will help you better forecast and strategize how you will manage renewals.

Set Goals For Renewals

Are you looking for a 3% average rent increase? Are you hoping to never have occupancy drop below 95%? As the market continues to become more competitive and stabilized buildings compete with new lease-ups, understanding your goals becomes even more important.

Whether you need to lease-up a 100-unit building or 500 units of new construction, a successful preleasing campaign brings in more move-ins and revenue than the developer and owner may have originally projected. Preleasing helps a property lease units before they have “turned,” or finished with construction. And when managed properly, the leasing team can ensure heavy occupancy during a property’s first 30 days of operation to generate income much sooner and maximize revenue, in large part due to earlier compounding rent payments.

However, there is a balancing act involved in a rapid lease-up campaign. Accurate pricing and leasing strategy are critical. If preleasing is slow, it could mean the rents are too high, additional concessions are required or the team simply doesn’t have the tools to instill confidence with prospective renters. If preleasing is too fast, it could mean demand is higher than expected, pricing is too low, concessions are not necessary or the leasing team has everything they need to get the application submitted. It’s equally important to lease apartments as it is to ensure dollars are not being left on the table.

Developers and owners need to find the balance of achieving solid velocity while maintaining the highest possible price per square foot. Here are four tips to a more successful preleasing campaign.

Engage The Most Interested Renters

There is always going to be a group of potential renters wanting first access to the property and/or willing to apply for an apartment even before seeing it. This starts with a thoughtful and engaging preleasing marketing campaign seeding renderings, photos and insider information about the property. There is often an opportunity to launch a pre-leasing campaign with an event, especially for those who have shown their commitment and excitement for the property. This is also a great way to gauge potential tenants’ pricing tolerance and which units will be most in demand.

‘Seeing’ Units Drives Leases

The average renter is significantly less likely to sign a lease from seeing a rendering than they are from seeing high-resolution photography and/or a 3D walkthrough. If showings during construction are not possible, expedite at least one model for actual unit photography and 3D Matterport virtual-reality walkthroughs, replacing renderings. This gives prospective residents the confidence to lease an apartment without physically seeing the space. A rendering of an apartment does not tell the full story of the textures and finishes. It is critical that the leasing team has enough information to lease an apartment without a potential tenant having to set foot in the space.