Hanley Wood Multifamily   Group: How to Sell to the Multifamily Market
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Hanley Wood Multifamily Group: How to Sell to the Multifamily Market

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Hanley Wood Multifamily Group 2009 Presentation

Hanley Wood Multifamily Group 2009 Presentation

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Hanley Wood Multifamily   Group: How to Sell to the Multifamily Market Hanley Wood Multifamily Group: How to Sell to the Multifamily Market Presentation Transcript

  •  
      • Four brands that target vital real estate segments
      • Expanding into mixed-use and sustainable development
      • Broad perspective adds value to each brand
    D EVELOPER Land and Communities M ULTIFAMILY E XECUTIVE Operational Excellence A PARTMENT F INANCE T ODAY Access to Capital A FFORDABLE H OUSING F INANCE 100% Affordable
  • Market INTENSE DEMAND
      • Third most populous country with high birth rate
      • The percentage of our population who are defined as renters continues to increase
      • Immigration rates are at all time highs and will add to household formations for years to come
          • New arrivals to our country typically start as renters
      • Half of built environment yet to be built
      • Foreclosures – renters for life
      • The myth that renting is not economically advantageous has been dismissed – renters by choice
  • Market LONG-TERM DEMAND
    • The children of the baby boom (echo boomers) are currently entering the age where they are most likely to become renters
    Echo Boom Baby Boom Births (millions) Source: National Center for Health Statistics
  • DEMOGRAPHIC SHIFTS OVER THE NEXT 10 YEARS FAVOR MULTIFAMILY DEVELOPMENT Multifamily Trends Source: U.S. Census Bureau Projected total population growth rate by age, 2008–2018 Apartments and condos: single and roommate rentals; entry-level and move-up condos Apartments and condos: move-down / downsizing and lifestyle product Senior living 20 – 24 25 – 29 30 – 34 35 – 39 40 – 44 45 – 49 50 – 54 55 – 59 60 – 64 65 – 69 70 – 74 75 – 79 80 – 84 85+
  • Market LIMITED SUPPLY
      • Over the past decade very little new construction has come online relative to the past 40 years. 300,000 annually.
      • On average, 200,000 units are taken out of the multifamily housing stock annually due to age.
        • 2 units removed for every 3 built., mostly affordable.
      • The condo conversion craze took additional rental units off the market during the housing boom
      • Economic feasibility, lifestyle decisions, and demographic trends ALL contribute to the stability and prosperity we see over the long term
  • Market DEMAND + LIMITED SUPPLY = OPTIMISM Planning activity is up despite financing turmoil
    • Bidding
    • Planning
    • Underway
    Three-month Rolling Average Units (Thousands) Source: PPR / Reed ConstructionTrak
  • THE OPPORTUNITY DECADE
    • Building Product Opportunity
      • Tremendous demand for new units and big need to improve existing stock
    The rental market represents ⅓ of all housing… it is big, fragmented and demands strategic thinking
    • Technology, Marketing and Amenity Opportunities
      • There is an ongoing opportunity for owners and management firms to improve efficiencies and differentiate
    • Finance Opportunity
      • In order to grow and meet the existing demand developers need access to capital now: build loyalty
    • “ Green” Opportunity
      • Due to ever increasing energy prices, sustainability and Green Living will become economic necessity
    How are you going to cover this market?
  • OPPORTUNITY NOW
    • New Construction Market is a $40 billion industry
      • 309,000 starts in 2007, very stable
      • 400,000 under construction at any one time,
      • Individual units and buildings both getting bigger, more luxurious
    • Renovation, Rehabs and Upgrades represent a $55 billion industry
      • 17.5 million apartments
      • Aging stock, average age of apartment is 35 years
      • 30%, 5.25M, upgraded annually
        • 34% replace kitchen, 26% renovate bathroom
      • Big push in value-adds
    • Building product manufacturers are just beginning to understand the differences that exist in the market
      • Wide open
  • COMPETITIVE PRESSURES FORCE MULTIFAMILY EXECUTIVES TO BE MORE CREATIVE-AND MORE SOPHISTICATED-THAN EVER BEFORE
    • Quality and design of building products is critical in order to attract and retain new residents
      • More demanding tenants
      • Marketing is important stakeholder
      • 81% of executives rate design as important
    • Money will be spent up front to reduce costs down the road
      • Lower maintenance costs deliver higher NOI
      • 92% of MFE readers rate quality / value as the leading criteria in selecting building products
      • The perception of quality can be influenced by advertising
    • The “lowest price” is no longer the leading driver for decision-making
      • More professional buying organizations looking for “partners”
      • Only 49% rate lowest price as important
  • OWNERS AND DEVELOPERS INVEST UP FRONT TO REDUCE COSTS DOWN THE ROAD
    • CAMDEN (formerly Summit) PROPERTIES
    • Mike Underwood , Senior Vice President
    • 15,343 Units
  • Source: READEX Research, M ULTIFAMILY E XECUTIVE, Reader Profile Study, 2003 Action and Intelligence MULTIFAMILY BUYERS ARE MOTIVATED BY DIFFERENT FACTORS THAN THEIR SINGLE-FAMILY COUNTERPARTS Bringing units to code Standard procedure at property age Product quality upgrade General modernization Property value increase Ability to increase rents Making property competitive in the market
  • IT’S A PROFESSIONAL BUYING TEAM
    • TRAMMEL-CROW RESIDENTIAL
    • Chip Bay , Senior Managing Director
    LINCOLN PROPERTY COMPANY Richard Rose , Regional Vice President of Development 170K Units Developed, 101K Units Managed, 48K Units Owned
  • DECISION MAKING PROCESS FOR NEW CONSTRUCTION
    • 51% of multifamily executives are making the decisions themselves
    26% say that a General Contractor makes those decisions 60% of readers make the decisions with the help of someone else at their firm (team decision)
  • DECISION MAKING PROCESS FOR RENOVATION / REMODELING PROJECTS
    • 66% of readers are making the decision themselves
    13% say that a General Contractor makes those decisions 60% of readers make the decisions with the help of someone else at their firm (team decision)
  • DECISIONS ARE MADE EARLY IN THE PROCESS
    • ARCHSTONE
    • (formerly CHARLES E. SMITH RESIDENTIAL
    • Jack Train , Senior Vice President of Development
    • 93,875 Units
  • DECISION-MAKERS AREN’T BEING CALLED ON
    • CAMDEN PROPERTIES
    • Mike Underwood , Senior Vice President
    • 15,343 Units
  • HOW DO YOU BECOME NUMBER ONE IN THE MULTIFAMILY MARKET?
    • Recognize the tremendous opportunity for both new construction AND renovation
    Understand the unique reasons why building products are specified by multifamily professionals Develop a strategic sales and marketing approach to reach owners, developers, and general contractors
  • HANLEY WOOD COVERS THE MARKET
    • 17.5 Million Apartments in 520,000 properties
      • 11 million are in buildings of 50 or more units
      • 5.7 million are in buildings of 5-49 units
    • The top 50 firms control 2.6 million units, 15%
      • We deliver deep reach into these top prospects, 1200 unique readers among Top 50
        • For example, 75 subscribers at Trammell Crow, 43 receive more than one publication, 118 total impressions
    • You still need to reach the other 85% of the market
      • 75,700 subscribers
      • 100,000 emedia prospects
      • 1600 conference attendees
  • HANLEY WOOD COVERS THE MARKET
    • Each brand serves owners, operators and developers
      • All segments of the market are covered
      • Minimal overlap
      • Advertising efficiency
    Operational Best Practices Strategies for Accessing and Deploying Capital Production and Preservation of Affordable Housing Building Successful Sustainable Communities We have access to reach key decision makers in this market and a variety of ways to touch and surround them
  • HOW ARE WE DIFFERENT?
      • We produce compelling content specific to the needs of your customer or prospect
      • Our broad industry perspective gives us insight on how to better serve each segment and engage the community and better leverage your brand
      • We offer a wide variety of options to access our audience with high levels of frequency: print , online , in-person . The broader the mix, the greater the frequency, the deeper the reach.
    • The trusted media brand in the multifamily housing industry
      • Provides coverage on all segments of multifamily housing – from construction to management to finance
      • Reach 25,000 senior-level executives who own, manage, develop and invest in multifamily housing
      • With the need to improve the quality of the existing stock, MFE delivers the decision makers who purchase your products and services
      • Reach 17,000 average monthly unique visitors to Multifamily Executive Online and more than 47,000 subscribers to the MFE Newsletter
      • Leading Events : M ULTIFAMILY E XECUTIVE Conference and the M ULTIFAMILY E XECUTIVE Leadership Summit
    • The authoritative media brand for financing and deal information
      • Provides comprehensive coverage of the best finance strategies to develop, acquire, rehab and reposition apartment properties
      • Reach 20,000 multifamily owners, developers, and asset managers .
      • 93% of readers are personally involved in purchasing apartment-related products/services
      • Media network also includes A PARTMENT F INANCE T ODAY Online, A PARTMENT F INANCE T ODAY Update e-newsletter and A PARTMENT F INANCE T ODAY Conference
    • The # 1 media brand serving the affordable housing industry
      • Provides in-depth information on the latest advances in financing, building and operating affordable housing
      • Reach 11,000 leading owners and developers of affordable housing
      • Delivers decision makers who purchase legal and accounting services, building products, leasing and property management services, compliance expertise and technology
      • Media network also includes A FFORDABLE H OUSING F INANCE Online, A FFORDABLE H OUSING F INANCE Update e-newsletter and AHF LIVE : The Tax Credit Developers’ Summit
    • The leading media brand serving developers of sustainable communities
      • Editorial focused on the development lifecycle: planning, financing, sustainable initiatives and community creation
      • Reach 19,000 single-family, multifamily and mixed-use developers, architects, builders and land planners
      • Delivers decision makers early in the planning stages - before developments are built – who spec your products and services.
      • Media network also includes D EVELOPER O nlin e , D EVELOPER Business Update e-Newsletter and the D EVELOPER Conference
  •