Blog

In today’s competitive market, multifamily developers lean heavily on fully amenitized buildings to attract residents—so that means it’s time to talk about the L-word.LUXURY. Of course.But when absolutely everything is labeled “luxury,” what does that really mean?It’s basically become the default way to justify market rents and position properties in the Class A space. But educated, savvy consumers who can afford these rents have figured out that just calling something “luxury” doesn’t make it true—and that upsets them.The fear of dropping the word "luxury" is understandable—we worry our projects will seem second-rate without it. But properties that lean too hard on the L-word often fall short, leaving residents disappointed when the experience doesn’t measure up. They aren’t quiet about it on social media, don’t usually stick around, and often help poison the next batch of prospects.The more we use the word “luxury,” the less it means, and the more confused and frustrated prospects get. So what do we do?Follow M. Scott Peck My logic says we spend a lot of money on amenities, and they appear to be an important psychological as well as competitive necessity, so I say we take the road less traveled to the same destination.A Universal Human Experience What we need to remember is that luxury has always been about more than appearances. Across cultures and time, the visual markers of luxury change, but the experience remains the same—more ease, comfort, convenience, and enjoyment. Less effort and stress, more privacy and personal space.If using superior quality finishes to hit all the visual markers of luxury keeps the project from penciling, what CAN we do better (that we have to do anyway) to provide the time-tested experiences associated with luxury?We research, come up with a strategy, and set specific design goals to intentionally provide the experience of luxury in ways that will resonate with both our target audience AND our budgets, finally making honest people out of ourselves when we use that L-word (over and over and over...and over).On to the F-Words Functionality. We can pay off the promise of luxury with how our spaces function for people by delivering more comfort, privacy, wellness, time, convenience—whatever signals a luxury experience to the target audience. And those expectations have shifted tremendously when it comes to Millennials and Gen Z. So the number one rule remains—know your audience.Next, Form. See what I did there? Form always follows function in architecture, and visual design will always play a key role, but it’s not all about extravagance and trend-chasing. The finishes don’t need to be the most expensive, but they DO need to make sense and show intentionality.Intentionality signals authenticity. Authenticity builds trust. Trust builds reputation. And now we arrive at what we all strive for—5-star Google reviews to help us attract and retain tenants and improve our ROI.So About Those Stories You Don’t Think You Really Need... We all know the numbers have to work. And when premium finishes aren’t in the budget, storytelling becomes our most powerful tool.A compelling narrative gives context to design choices, so they feel intentional, not like cheap substitutions. Without a story, residents judge what they see at face value—and what they see can feel underwhelming. But with a story, those same finishes become meaningful, even necessary, to bring the narrative to life.This intentionality signals authenticity, and authenticity builds trust. When they trust, they’re far more likely to stay, provide positive reviews and recommend our property to others.Delivering on the Experience The way we market and tour the project must also highlight the experience of luxury intentionally woven into the design. Leasing teams need to bring the narrative to life, showing prospects how the space supports their lifestyle—how it makes their daily routines easier, more comfortable, and more enjoyable. It isn’t just a walkthrough—it’s a chance to make the experience tangible and leave residents thinking: “This makes sense— I’ll be comfortable here, and life will feel easier.”So when it comes to the L-word—it’s really all about inspiring our residents to say it back.Author: Vicki Johnston. © 2024. All rights reserved.

The L-Word Can Be Meaningless, But the F-Word Delivers

We all know amenities create that crucial “WOW” factor that certainly helps get leases signed. But here’s the question that keeps me up at night:&nbsp;If amenities are so crucial to leasing, why do 20% or less of residents actually use them? And, if they are moving from another new property, they are AWARE they didn’t use them in their last building, but are still willing to pay a premium for a building with them again.&nbsp;Is it psychological? Maybe it says something about who they are and the success they have achieved to both themselves and others?&nbsp;Or is it the simply the excitement of the POSSIBILITY of using them, the convenience of everything in one place, and/or the perceived value add that’s the draw? What is it that REALLY matters to our end users? Are we creating the “amenity wars” by trying to keeping up with each other, instead of genuinely understanding IF they are all important and WHY?I’m genuinely curious. Are we missing design opportunities? Or marketing opportunities? Maybe not, but inquiring minds want to know, so I’m going to start digging and see what I can find.&nbsp;Author: Vicki Johnston. © 2024. All rights reserved.

The Multifamily Amenity Paradox: Is it Psychological? Because It’s Not Logical…

Change is inevitable in multifamily development, and with change comes risk. After 20 years in the industry, I’ve learned that the best way to mitigate risk is by making projects more marketable. That happens when the built environment, the marketing, and the resident experience are fully aligned with a deep understanding of your target audience.In today's market, where new deliveries are abundant, it’s clear: those who have embraced this approach are faring better, while those who have not, may be feeling the pain.The future of multifamily will be defined by those who not only acknowledge but deeply understand their audience. By leveraging this insight, developers can create spaces that meet today’s needs in a way that remains timeless—ensuring the project stays relevant and marketable, and success is not just immediate but sustained.Author: Vicki Johnston. © 2024. All rights reserved.

What's Your Risk Appetite These Days?

As developers, we literally spend millions of dollars to fill our stable full of thoroughbred design professionals who are ready to run hard for us. But a race requires more than just an exceptional thoroughbred, it requires a good jockey with the experience, leadership and temperament to bring out the best in them.Orchestrating an effective creative process, managing the required collaboration, constantly translating between stakeholders and creative teams and ultimately ending up with something engaging to prospects that is also in budget, isn’t something they teach you in real estate school. Often times, it simply takes one to know one. Either way, we need to understand the value of creative management in the development process and all the benefits it brings. From funding pitches, project approval presentations and investor updates, to smart, creative “value engineering” that takes the entire end user experience into account.So why aren’t experienced Creative Directors part of most development companies? I’m not sure. But I am sure brains that are great at underwriting, financial modeling and proformas work a little differently from brains that intrinsically understand and thrive in creative environments. Find one that is a pro at leveraging creative talents for your business purposes, and now you have a competitive advantage.The point is, you can open a beer on a hot summer day with a borrowed horseshoe, but a bottle opener in your flip flop is a game changer. &nbsp;Creative people appreciate being led by creative people and they will work harder for you. Hire someone that speaks their language and then you are off to the races.So get out there and find yourselves a good horse whisperer and stop leaving money on the table due to untapped potential in your stable.Author: Vicki Johnston. © 2024. All rights reserved.

Stable of Multifamily Thoroughbreds, But No Jockey in Sight?

Just as Neo discovers a deeper reality obscured by code in "The Matrix”, we meticulously craft proformas, setting goals and targets that dictate the course of our projects. But beneath all those complicated matrices lies the reality of the actual products we build.A solid location goes without saying, and the latest amenities are necessary, but at the end of the day, no one moves into cell E17. No one lives in an “average square footage”, and everyone knows the difference between a 1+ Den and a true two bedroom, no matter what we call it to make the mix work, or how we choose to market it. People are smart, and if you aren’t fully aware of the reality of the products you’re delivering, it’s much harder to accurately predict their actual marketability or adjust your rents accordingly in real time.Don’t get me wrong, proformas are necessary. They are our business plan and road map to success. They help us estimate and track costs, revenues, returns and risks but, spreadsheets can rarely account for the impacts of site constraints, building codes and fair housing on the three immutable pillars of location, unit mix and floorplans.A well-designed floorplan is the difference between a unit that sits and one that leases quickly. Do you have enough of the “good ones” to hit your goals and maintain the velocity you need? Factors like spatial flow, functionality, flexibility and overall livability play a crucial role in attracting and retaining tenants.After 10 years of branding and marketing for builders and developers, followed by a decade of touring thousands of people through multifamily floorplans during both the boom AND the bust, I have also owned and lived in multiple multifamily products for the last 23 years. I’ve now been lucky enough to spend the last 10 years tying all of that knowledge together to contribute to the design and marketing of a better multifamily experience.All that is to say that I don’t come to these conclusions lightly, but from a true full lifecycle perspective. Nothing gives you clarity on what “good” is, like a commission only gig that can take anywhere from two to five years to pay out depending on the quality of the product you have to work with and the market conditions.We need to create multifamily spaces that meet financial goals to be successful, and the only way to do that is to always look beyond our spreadsheets to the tangible reality of the tenant experience we are providing.Simply put, take the Red Pill.And remember, "Denial is the most predictable of all human responses." – The Architect, “The Matrix Reloaded”Author: Vicki Johnston. © 2024. All rights reserved.

“The Matrix” and Multifamily Are You The One?

Often attributed to the legendary writer Ernest Hemingway as one of the shortest stories ever written, those six words, in a specific order with specific punctuation, give you all the feels. The narratives and stories we create for our multifamily projects also need to be short and elicit emotion, but as a result of experiencing a built environment. Get it right, and the people you are trying to attract will get all those feels about moving in, approving, or investing in your project.But we all know the realities of “VE,” value engineering—the task of cutting or modifying our end product due to budget issues. So, let’s do a few quick VE exercises for Mr. Hemingway.First, let’s just cut it back by 50% across the board, it should be fine, right? “For Sale: Baby” Hmmm. That’s a completely different story and probably not something we would be proud to put our names on. Alright, let’s just keep what we think is most important. “Baby shoes.” Now the compelling story is watered down to nothing but a tiny pair of cute shoes. And if we don’t VE details like punctuation correctly, we could end up with,&nbsp; “Baby, shoes.”&nbsp; Is that a request for my significant other to fetch my shoes? Who knows, but it doesn’t make much sense or elicit any emotion.What if the author were around to help? He created the compelling narrative, and that means he probably has more ideas to solve the problem AND preserve the core idea of loss. The goal is to find a compromise that retains the core emotional impact of the story while reducing costs.“First kiss, final goodbye.” Compelling, emotional, and slightly less painful to lose a potential relationship than a child, but painful nonetheless, message received.VE is difficult and even more so without a strong narrative to guide you in making the right decisions to preserve your core concept. It isn’t just a “nice to have”, it’s a workhorse that serves you in a variety of ways. Design teams of all disciplines will get there faster, more accurately, and do better work than you expected. VE decisions happen more quickly because you know what you can cut and where. And creative people get much more creative about saving money when they are saving a narrative they helped create and are therefore committed to and proud to work on.&nbsp; How do I know this is true? Because I’m lucky enough to work with people like Andres Rubio, Rebecca Ferrara, Daniel Schlossberg, Travis N. Hampton, Jennifer Crosby, Shannon Stewart, Starr Ashcraft, Tammy Lippman, Emily Rickman, Josh Bethea, Colin McCann and their teams.The key is to always do it holistically. Look at everything together, site, structure, systems, skin, and finally, interior fit out and finishes. Don’t silo your decisions into budget categories or timeframes and always, always include your authors.If you don’t, you risk throwing the baby out with the bathwater. Author: Vicki Johnston. © 2024. All rights reserved.

INSIGHTS

The L-Word Can Be Meaningless, But the F-Word Delivers

The Multifamily Amenity Paradox: Is it Psychological? Bec...

What's Your Risk Appetite These Days?

Stable of Multifamily Thoroughbreds, But No Jockey in Sight?

“The Matrix” and Multifamily Are You The One?

"For Sale: Baby Shoes, Never Worn.”