The multi-family real estate landscape is being dug up and replanted with hip, trendy, unique amenities that millennials are demanding. Where shared value-added amenities were once in vogue, today's younger set are looking for one-of-a-kind living experiences. That modern gym and community pool is not giving way to a wine cellar with a climbing wall right outside and a Tesla charging center to boot.
The new tenant demographic wants a living environment that has never been presented to clients before. The new trend real estate professionals are seeing reveals that millennials are willing to pay a premium to avoid travel and logistical hassles. So, property managers now turn to service and technology companies that can provide the desired amenities directly.
Mitchell Schear, Camber Creek’s newly appointed Executive Partner, had this to say about this “amenities arms race”, and the impact this will have on the industry:
Today, “experience” is what drives prospective residents to choose one building over another creating an “amenities arms race” among owners to offer the most enticing and unique amenities in the market. In multi-family buildings, property owners began offering enhanced gyms, pools, bike storage, etc. to attract residents. Now, we’re beginning to see wine cellars, cooking classes, personal shoppers, child care, pet services, digital driving ranges, climbing walls, and even ‘community’ gardens being offered to residents, providing them with more benefits and unique experiences than ever before."
The veteran commercial real estate guru went on to outline the underlying trend of residents looking to outsource everything possible in order to avoid logistical hassles - no matter the cost. Schear, who was the former president of Vornado/Charles E. Smith, went on to advise on how property owners are now able to provide high-quality amenities and experiences leveraging proptech like Camber Creek is geared to support. He went on to emphasize how these forward-thinking owners will be able to create their own market demand and take advantage of huge opportunities.
Camber Creek is one of many firms doubling down on PropTech bets. We spoke with Jeff Berman, General Partner at the firm a couple of months ago about the future of technology in the real estate space. Also, Casey Berman, Founder, and Managing Director of Camber Creek spoke recently with GlobeSt.com about how the sentiment toward proptech investments has done a turnaround in recent years.
So, it seems like PropTech powered startups have a new impetus in this amenities arms race. It also seems safe to predict Camber Creek continuing to fund and support newfangled amenity tech, which is good news for property owners and residents.