“The Matrix” and Multifamily Are You The One?

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”