It’s a rosy outlook for the newest real estate sector to be featured in a CommercialEdge monthly report. In 2020, the industrial sector was considered the top performer of all major real estate sectors. Industrial rents averaged $6.38 per square foot in December 2020, a 4.8% increase over the last 12 months, according to the first-ever CommercialEdge Industrial Monthly. All of the top 20 markets covered in the report saw at least some measure of growth in average rent over the last year. The ongoing industrial report will cover data on rents, occupancy, supply and transactions, as well as key economic indicators. “Rent growth across the board bucks the trend of other commercial real estate asset classes. Both multifamily and office have a substantial share of markets with falling rents and increasing vacancies, something not seen among the top 20 industrial markets,” note the analysts. Demand for e-commerce infrastructure and a huge boost in online sales during the pandemic have been a boon for industrial assets. Today, e-commerce accounts for nearly one-fifth of core retail sales. In 2020, a record 228.4 million square feet of industrial space was delivered, the most new space completed this century. That milestone is a further indicator of the health of industrial real estate. These projects were well underway before COVID-19 induced a demand surge for industrial space, signifying that the industry was already on the upswing before 2020 put things into overdrive. Find the full CommercialEdge Industrial Monthly for...

After a year ravaged by disease, division, job losses and economic hardship, expectations for the multifamily industry in 2021 are the subject of a new Yardi Matrix outlook. “While there does appear to be light at the end of the tunnel, it will take some months to get most of the country vaccinated and get businesses operating as normal,” states the report. Job growth has been mostly positive since the summer, but the economy remains nearly 10 million jobs off its peak. Millions of renters continue to struggle to make monthly payments. The $900 billion stimulus package passed at the end of 2020 provided some relief, especially the $25 billion renter assistance, $25 billion for Housing and Urban Development (HUD) programs and $300 per week supplemental unemployment. “However, another package is likely to be needed in 2021 to keep many families and property owners afloat,” the report’s authors opine. Nationally, rent growth fell only slightly in 2020, but there was a huge variation among metros. Rents and occupancy levels fell sharply in high-cost gateway markets, as renters left crowded and expensive coastal centers. More affordable markets in the Sun Belt, Southwest, Midwest and Mid-Atlantic saw modest rent growth. In 2021, the expectation is that gateway markets will continue to struggle, and the industry will have to deal with weak rent collections, eviction bans, forbearance requests, lobbying for renter aid and new federal mortgage oversight protocols. Despite the challenges, capital flow remains strong. Sales activity dropped about 35% in 2020, but investors are still looking to buy apartments. Agency lenders have had their allocations clipped slightly, but debt availability is also strong. Construction has slowed, with less than 300,000 deliveries in 2020. With more than 750,000 units under construction now, new supply should stay in...

Senior living community operators spent much of 2020 working to stabilize their operating environments. Technology has played a major role in that adaptation. “The need to have technology access in senior living has jumped up a level, and it will stay there,” Laurie Orlov, founder of Aging in Place Technology Watch, told Senior Housing News. Zoom meetings, virtual tours, video chats and other capabilities that maximize safe interaction are “likely to continue long after the coronavirus has been contained,” adds a blog article posted by Life Care Services, a Des Moines, Iowa-based senior housing community operator. Eighty percent of respondents to a Senior Housing News survey in August reported increasing their tech spending this year to address the COVID-19 pandemic; 68% said their companies implemented telehealth since the beginning of the crisis. Looking ahead, 87% of survey participants expected their organizations to increase their technology budgets in 2021 for resident monitoring, contact tracing, telehealth, virtual activities for residents, virtual tours for prospects and other operations. “And that’s just the beginning,” Life Care Services says. New applications coming over the horizon “will make life easier, safer and more engaging for residents,” including motion and voice controls that eliminate the need to press buttons or grab handles, virtual reality systems for more immersive community tours, wearable smart technology and even robotic pets for memory care residents. Other areas that senior living operators are targeting for expanded investment include resident safety and emergency call systems, air purification and other infection control measures, wellness programs, and sales and marketing. Access to technology will also become a larger factor in families’ evaluation of senior living options going forward. “If you go into a community … and there’s no Wi-Fi in the room, people will not put up with that,”...

Even brief lives can leave a lasting impact. Baby Angela Policastro departed from this world shortly after her first birthday. Her life inspired the creation of a unique non-profit that supports medically frail children and their families. Yardi united efforts to support this groundbreaking organization. About Angela’s House Angela’s House is a not-for-profit agency that offers support and services for the families of medically fragile children. By coordinating an array of essential home care services, Angela’s House gives families an opportunity to focus on each other rather than finding, negotiating, funding and scheduling necessary resources. Home care services were only the beginning. Since 1992, the organization has expanding to include three residences. On average, the residences and home services serve 600 children each year. Programs cover medical supplies, therapeutic equipment, assistive technology, home modifications, respite, counseling and crisis assistance as well as special camps and other enrichment resources. These offerings are called the Everyday Wishes, providing for the everyday needs of kids as well as critical care. Angela’s House + Yardi The Angela’s House 3K Walk raises funds for the Everyday Wishes. Yardi has participated in the walk for the past three years. The 2020 Virtual 3K Walk theme, “At Your Place, Your Pace” encouraged participants to practice social distancing while supporting the organization. Patrons walked with their families, friends and neighbors to raise funds for the cause. CSD team leader Mark Skapinski and fellow planning committee members Sue LaGuardia, Joseph Montesano, and Cristine Gleason led the initiative at Yardi. #TeamYardi showed up in full force! In total, 31 Yardi employees participated in the walk, including eight from CSD. Different departments walked at different times, continuing support for the organization throughout the day. CSD team members walked with one another via Microsoft Teams video...

Dial Senior Living, manager of more than 2,100 independent living, assisted living and memory care units in seven U.S. states, embraces a philosophy of continuously improving its offerings. Along with providing caring, comfortable communities, “we’re also committed to investing more than our competitors in staffing, entertainment, technology, ambiance, quality goods and services, and overall lifestyle,” says Ted Lowndes, president of the Omaha, Neb.-based company. As part of their ongoing technology and quality initiatives, Dial leaders recently evaluated the programs they used to manage marketing, care and other operations. They found that the separate and uncoordinated systems in place duplicated information gathering and limited reporting capabilities. Perhaps worst of all, according to Michael Bowles, project coordinator for Dial, “our executives couldn’t generate reports. They had to put in a ticket, which made them and our investors wait. We wanted a more efficient reporting workflow and more responsive investor service.” These findings prompted Dial to seek out Yardi Senior IQ, a business intelligence solution that compiles operational and financial data from the Yardi Voyager Senior Housing technology platform. Reports generated by Yardi Senior IQ delivers in-depth insight into Dial’s occupancy, finances and other performance metrics. The solution also automatically compiles custom reports requested by the company’s investors. “Yardi Senior IQ is fantastic because it establishes orderly workflows and creates new reports from existing ones, complete with custom dashboards. Investors can get very specific information on demand without having to wait for us to send it,” Bowles says. “Our marketing, care and finance teams work as one team now because nobody is duplicating somebody else’s data compilation. That has drastically cut down manual tasks and helped us maintain operations with fewer people onsite, an important consideration in the COVID-19 era.” By replacing spreadsheets with a single connected...

Take a look behind-the-scenes of the Yardi Corporate Training group to discover what drives their performance and how they help new employees develop the skills needed to be effective, thoughtful and proactive. Online training and onboarding Yardi Corporate Training group has offices in Raleigh, Santa Barbara, Cleveland, Toronto and Saskatoon. A team of 10 provides fellow employees with the knowledge and skills needed to optimally perform their jobs. “The team objectives are to offer programs that will foster career and personal development either in job-specific training or soft skills,” explains Jamie Hall, team lead. “We provide new employee training, training through our Aspire product and employee webinars. Our well-designed programs help employees become more productive and efficient, increase motivation, reduce turnover and help convey our company culture.” Hall has 20 years of experience in education and training. He joined Yardi five years ago, drawn to the company culture. “I learned more about Yardi and the culture that just made me enjoy my work much more. I think it’s important to share the Yardi culture with new employees so that culture continues as we grow,” says Hall. He and the Corporate Training team have worked closely with the Yardi Aspire department to educate about 500 employees each year. That includes new employee training and onboarding. Hall leverages the Aspire product to deliver knowledge and information to new hires across the globe. It’s a testimony to the strength of Aspire and the company’s confidence in its own product. Learn how you can automatically distribute role-based learning plans for your organization. The power of cloud-based eLearning A challenge for workplace students translates to a challenge for the Corporate Training team. With over 7,000 employees worldwide, the greatest challenge to date has been access. “One of the challenges...

Do you remember when online shopping first began to disrupt brick and mortar stores? Shops struggled before the pandemic and now they face additional hurdles. Fortunately, small business owners are creative and resilient. We interviewed several small business owners and marketers to learn how they’re staying in business and keeping customers engaged during the pandemic. Re-creating the in-store experience Consultations, semi-private + private shopping Exclusive, in-store shopping experiences were once reserved for the rich and famous. Big-name customers could arrange to shop outside of operating hours or arrange have the shop vacant during their visit. While this is still the case, there are new players on the field. Tiny shops lifted a page from the celebrity handbook. These small stores limit the number of people permitted in the building to create a more private shopping experience. The added benefit is that customers gain more one-on-one attention and support from clerks. “This is a terrific way to permit in-person shopping while building customer loyalty and encouraging good online reviews,” says Edith Peele, owner of Simple Threads clothing boutique near Covington, GA. “We’re limiting the number of shoppers for safety, but it feels more like an exclusive, fancy shopping experience.” Interactive shopping A second opinion can be an incredibly valuable thing. You’ve likely been there: you have two (or more) products that you like. You need to narrow down your options but can’t seem to make a decision on your own. You reach for a second opinion. That second opinion can now be a store clerk on FaceTime or in a chat window. It’s a relatively simple way to encourage safe interaction and a value-add service not found in larger online-only retailers. Make gift preparation a breeze By preparing online purchases as gifts, retailers take three...

Did you know that pets offer several health benefits for seniors? Furry, feathered and scale- friends have long received respect as dear companions. Pet ownership also offers direct physical and mental health benefits that are essential during quarantine. Companionship comforts Quarantine exacerbates feelings of loneliness and isolation that seniors may already experience. Pets, with their unique personalities, preferences and interests, offer seniors a companion when friends and family are unable to visit. Pets ease feelings of loneliness and distress. Dr. Helen Louise Brooks and her team at the University of Liverpool in the United Kingdom screened more than 8,000 articles and reviewed 17 papers on the subject. She reports,“Pets provided acceptance without judgment, giving unconditional support, which [participants] were often not receiving from other family or social relationships,” says Dr. Brooks. Improve mental health Pets should be included in patient care plans, particularly when diagnosed or self-reported mental illness is a factor. Dr. Kelly Rushton co-authored a study published in the journal BMC Psychiatry. She discovered that pet ownership resulted in several positive outcomes for patients’ mental health. Participants living with depression, anxiety, schizophrenia, bipolar disorder and post-traumatic stress disorder reported improvement in symptoms. Study participants report that pets provide a sense of unconditional love while helping them manage their emotions. Patients who were subject to violent outburst experienced better self-regulation and fewer acts of aggression. Patients who used to fixate on the symptoms of their mental health found a positive distraction in their pet. “We feel that pet ownership has a valuable contribution to mental health, so should be incorporated into individual care plans of patients,” says Rushton. Improved mood + outlook Caring for and interacting with a pet produces serotonin, the chemical hormone that promotes positivity and happiness. Serotonin is essential for mood stabilization and...

Isolation is necessary to keep senior living community members healthy during the pandemic – and a challenge to their well-being in other ways. As HealthTech magazine put it, “Important safety measures to keep high-risk people isolated during the pandemic hold a particular disadvantage for older adults in assisted living.” While the absence of sustained interaction can’t be completely mitigated as COVID-19 runs its course, a number of collaboration tools give senior living community residents vital mental and physical stimulation plus social engagement with the outside world. “Advances in technology for senior living are more focused on improving quality of life, providing data that enhances housing and developing personal devices that give seniors more control over their environment,” according to Craig Fukushima, managing partner for The Fox Group LLC, a health care consulting firm in Upland, Calif. Many of the technology tools leveraged by older adults are familiar to the non-senior population: smartphones, tablets, videoconferencing, telehealth. HealthTech reports that residents at Connecticut-based Maplewood Senior Living, for example, use iPads for video chats, virtual cocktail hours and birthday parties. A Thrive Senior Living community in Germantown, Md., added Alexa-enabled voice control and smart speaker devices. And Seattle-area operator Merrill Gardens outfitted seven of its communities with devices that support video calls with family and activities such as virtual card games and trivia contests. Video games are another way to keep seniors active. Fitness trackers can help them count steps, compete in competitions and create workout routines. Other apps offer quizzes, puzzles and other stimulating activities. The gap between tech-savvy younger generations and their elders is narrower than some people might think. An AARP survey published in January 2020 revealed that 51% of older Americans bought a smartphone, smart television, wearable device or other tech product in...

“Heading into 2020,” Senior Housing News reported last January, “many senior living providers are focused on making investments to upgrade the resident experience, to stand out in a competitive landscape and appeal to future consumers.” Those investments are happening, albeit in different circumstances than could have been anticipated. Even before the pandemic, Barron’s noted, “The senior-living industry was already in a state of flux—adjusting to longer life spans, more-active retirements, a labor shortage, and changing desires for care.” A task force convened by the International Council on Active Aging identified six principal areas that will define the “next normal,” including community designs that optimize social distancing and technology that increases connections and efficiency. The imperative to maintain resident and family engagement in the senior living environment makes digital programming and other technology a top priority for senior living operators, says Detroit-based integrated design firm SmithGroup: “We must design to enable quality of care and flexibility in facilities … while balancing design solutions that protect and promote the social and mental wellness of residents and staff.” To enhance social connections, for example, some communities have implemented videoconference technology that lets residents engage in fitness classes, medical appointments, spiritual services, community activities and more from computers or mobile devices. Other likely developments on the horizon include the establishment of multiple ecosystems within a community, upgrades to HVAC and other building systems, enhanced infection prevention measures, continuing staff and resident testing, visitor screening and additional protective equipment. Yardi software solutions help senior living community operators work more efficiently by automating processes associated with marketing, leasing, record-keeping, resident care and more. Learn...

Industry leaders from Grubb Properties and MG Properties Group recently shared insights on big data, benchmarking and forecasting with Yardi’s Paul Yount. “You won’t be successful in any market if you don’t have the right tools. You need the data. You have to be ready and prepared,” said Joe Anfuso, chief financial officer at MG Properties Group. Nothing could have been truer for real estate companies in 2020. With unanticipated challenges brought by the COVID-19 pandemic, real estate operators had to act fast to protect their bottom lines and keep staff and residents safe. For most companies, that meant adopting technology to transform their businesses. Read on to learn how Grubb Properties and MG Properties Group have been using Asset IQ, Yardi’s multifamily asset management software part of the Yardi Elevate suite of multifamily solutions, to guide decisions and improve performance with better data. Pivoting to online services With the growing demand for contactless leasing and transactions, many operators have made the pivot to doing business online. And it’s likely that contactless leasing — including self-guided tours — will be around long after the pandemic. Additionally, asset intelligence driven by big data has been guiding real estate operators through challenging times and will continue to lead the way. “2020 budget numbers were very different from what we projected in 2019. We didn’t see the normal seasonal changes, and budgets were pretty much out the window which has made competitor and peer data very important to accurately measure performance. We need to know how we’re measuring up to our competitors, what concessions and lease terms we’re offering and if we’re keeping the back door closed to avoid being in a vulnerable position,” said Shawn Cardner, executive vice president of Grubb Properties. According to Joe Anfuso,...

How has the pandemic permanently altered multifamily housing? This is one of the many questions explored during the 2020 National Apartment Association APTvirtual conference. The event hosted 63 breakout sessions and five TED-style Game Changer sessions that helped participants tackle tough questions. The Connect with Execs session offered a unique opportunity for guests to talk to Anant Yardi, founder and president of Yardi. Together, participants explored technologies that surged during the pandemic and are now industry standards. “The pandemic has accelerated the transition of digital media and the use of digital media,” observed Mr. Yardi. “AI is such an important topic. AI, big data and IoT are three topics that are taking a lot of attention.” He continued, “These are the technologies that are coming to the forefront. This is what we mean by innovation, bringing tech to the market for the benefit of the industry.” Artificial intelligence and apartment chatbots, our new coworkers Technologies that leverage artificial intelligence, such as chatbots, bridge the gap between live customer service and cost efficiency. Chatbots permit leasing agents to focus on high-value tasks instead of repetitive inquiries. When leasing agents are not available, chatbots offer a natural supplement to their services. RentCafe Chat IQ can guide prospects through the leasing journey by readily presenting information on pricing and availability, tour scheduling, pet policies and more. It communicates via chat and text and will soon have capabilities for emails, calls and in-app messages. Chatbot interactions are natural, intelligent and accurate. The engine has learned, for example, that “What r ur business hours” is actually the question “What are your business hours?” It uses natural language processing to understand typos and improper grammar. Machine learning enables AI engines to adapt to human speech and writing patterns. With each...

Employee burnout is a pain point for many property managers. It’s a major contributor to high turnover, which is costly, time consuming and quickly depletes employee morale. In remote work environments, there are additional risks and considerations. Fortunately, you can fight back. A few industry experts offer tips, tools and insights to prevent and mitigate burnout amongst your remote staff. Why should you keep an eye on employee burnout? Employee burnout is the first step in a downward spiral that you may recognize: an overwhelmed employee cannot indefinitely sustain a high level of performance. Eventually, job performance suffers, and fellow employees are required to pick up the slack. As other team members compensate, their workloads increase to unsustainable levels. Emotions and frustrations run high, morale plummets and then someone quits. Their workload shifts to other employees, which increases the potential for burnout and the cycle continues. In remote work environments, employees may not have a designated home office or coworking space. This means that they are facing professional and domestic challenges in tandem, potentially quickening the burnout cycle. It costs between $5,505.80 and $9,444.47 per turnover to replace an entry-level employee. Harvard Business Review reports that the psychological and physical toll of burnout cost an estimated $125 billion to $190 billion a year in healthcare spending. Eric Garten, partner at global management consulting firm Bain & Company, believes that’s just the tip of the iceberg. “The true cost to business can be far greater, thanks to low productivity across organizations, high turnover, and the loss of the most capable talent.” He continues, “Executives need to own up to their role in creating the workplace stress that leads to burnout—heavy workloads, job insecurity, and frustrating work routines that include too many meetings and far too little time for...

Here’s a roundup of recent reports from the Energy Information Administration, the statistical and analytical agency within the U.S. Department of Energy: Wind power flies high in 2020 Project developers expect more than 23 gigawatts of wind turbine generating capacity to come online in the U.S. in 2020, far more than the previous record of 13.2 GW added in 2012. The impending phase-out of the full value of the U.S. production tax credit at year’s end is leading to more capacity additions than average this year, just as previous tax credit reductions led to significant wind capacity additions in 2012 and 2019. Texas has the most wind turbine capacity among states, with 29.1 GW installed as of August 2020 and another 4 GW expected by the end of the year. Wind’s share of U.S. electricity generation increasing from 7.4% in 2019 to 8.8% in 2020 — more than any other renewable electricity generation source. That share is expected to reach 10.3% in 2021. CO2 emissions reach lows In 2020, carbon dioxide emissions from the U.S. energy sector could be 11% lower than in 2019, according to data collected through August and estimates through December. CO2 emissions are expected to fall by 19% for coal, by 13% for petroleum and by 2% for natural gas. Many of this year’s changes in energy-related CO2 emissions are attributable to COVID-19, including working from home, stay-at-home mandates, closed or limited operating hours for several types of businesses and travel restrictions. In April, monthly U.S. energy consumption fell to a 30-year low and emissions reached a record low. Winter bills holding steady U.S. households that primarily use natural gas or electricity will have slightly higher energy expenditures this winter, with households using propane spending 14% more and those relying...

There’s no way to introduce an article about the changes wrought by 2020 that doesn’t underplay the significance of the COVID-19 pandemic. It’s affected the way we do everything — limiting travel, increasing screen time and turning even the most basic activity into an exercise in risk management. For people in the multifamily industry, apartment rentals went from a typically high-touch experience to virtually contactless, seemingly overnight. And while some of the changes are only temporary, others are likely to last long after the virus abates. “This year is a pivotal moment that will reshape how we do business,” asserts Esther Bonardi, vice president of marketing here at Yardi. “The pandemic is changing our future. How can we use this for good?” Bonardi recently had the chance to talk with three multifamily leaders about their experiences marketing and leasing apartments during the pandemic. Hear from Garin Hamburger, senior director of national marketing at Pinnacle; Ian Mattingly, president of LumaCorp Inc.; and Pei Pei Mirabella, senior vice president of operations at Bozzuto on the emerging trends that will have the biggest impact on multifamily rentals going forward. Bonardi: What do you think was the biggest change in 2020 that has the most potential to become a permanent shift in the way we do business? Hamburger: The biggest change that will last through the pandemic and continue to evolve after it are the creation of alternative tour types, specifically virtual and self-guided tours. I really believe we’re coming into an age where technology will dramatically shift the customer journey and the leasing agent experience. Mirabella: The companies faring better during abrupt shutdowns have the tools and technology in place to pivot operations and enhance productivity while working remotely. In addition to using live and pre-recorded virtual...