I work with owners of ‘mid-tier’ apartment properties: roughly 20 – 60 unit assets. When I tell owners about all of the units coming online in Salt Lake City, they all say the same thing, “…that won’t impact me. I’m not an A property…I don’t need to worry…” I explain the ‘ripple effect.’ Many C residents moving to B’s and B residents moving to A properties. And with 50%+ of A’s in Salt Lake offering concessions, with B’s soon to follow, and tens of thousands of units under construction, the ‘ripple effect’ will be more than dramatic and pronounced, it will directly impact mid-tier owners. I advise them to plan-plan-plan. Hold on to your residents via proactive outreach efforts, make those needed improvements, understand what your competition is doing, stay informed about changes in your submarket (i.e. new construction), revisit your rents frequently, evaluate potential concessions, and be current (engaged!!) about what is occurring in the overall market. It’s easy to own, manage and operate in an ‘up’ market. When the tables are turned, everything changes. We are seeing unprecedented and historic changes in the Wasatch Front apartment market. To be complacent and uninformed will negatively impact a property’s cash flow and value…perhaps significantly.

 

 

Svikhart & Associates, a Salt Lake City-based real estate services company, focuses on asset management, brokerage listings and sales, and all aspects of a multifamily investment. Specific diligence regards property operations and strategies to maximize asset performance and value. Additionally, the firm assists owners regarding economic, financial and market factors that impact returns on investment. The firm targets ‘Mid-Tier’ assets which it defines generally as 10-to-60-unit properties.

 

Please find us at svikhart.com or contact us at 801-550-5684 to learn about the real estate services the firm provides. To subscribe to the firm’s newsletter addressing events of the day please follow this link Newsletters.