ICT Insights Edition 1 - Transforming Spaces: Adaptive Reuse and Emerging Trends in Multifamily Housing
Integrated Control Technology
World leading manufacturer of intelligent electronic access control and security solutions.
Introducing ICT Insights, your quarterly guide for the latest trends, tips, and technologies in intelligent electronic access control and security solutions. With over 20 years of expertise and thousands of systems installed worldwide, we're excited to share our knowledge and insights with you.
In this first edition, we're highlighting one of the biggest opportunities for multifamily developers to consider – the adaptive reuse of buildings for multifamily, the top demands for the 2024 renter, and how wireless locks are revolutionizing apartment buildings.
A smart solution to the housing shortage
Given the ongoing housing shortage, it’s no surprise that exploring innovative and appealing ways to meet housing demand is top of mind. With more employees working remotely, the demand for office space has significantly decreased – leaving many offices vacant and initiating a new trend of transforming these spaces for alternative use.
New York City is planning on spending the next decade turning 64 vacant office buildings into 20,000 apartment units, as the beginning of 2024 in the US saw office vacancies rise to nearly 20% while an already critical housing deficit saw a shortage of over 4 million units.
But these renovations aren't just popping up in the Big Apple. Since 2022, the US real estate market has seen a 96% increase in adaptive reuse projects and this is being supported by the US government at the federal and state levels, who have created guides and incentives for the adaptive reuse of commercial spaces into multifamily units.
Key benefits of adaptive reuse
Time
As the saying goes, "time is money," and this is especially true when it comes to property development and management where getting a tenant in as quickly as possible is crucial. Don't want to wait for your new build? Good news — while new developments usually take 4-5 years, conversion projects average just 2.5 years, including the permitting phase.
Money
Save yourself valuable CapEx. New builds in New York City generally cost US $600-700 per square foot, while a conversion is closer to US $300-400 per square foot. Across the board, reports show that on average adaptive reuse typically cost 16% less than new build projects. Operating costs are improved as well, thanks to apartment vacancy rates being half of average office vacancy rates.
There is also the economic impact of adaptive reuse. Adaptive reuse can significantly impact local economies and property values by revitalizing the appeal of the neighborhood, creating jobs, and increasing property values which go on to generate tax revenue which can then be invested back into the city.
Sustainability
As climate change escalates, so do the pressures on carbon heavy industries to curb their emissions. Building operations account for 29% of the U.S' carbon footprint while the construction industry contributes 35% of all greenhouse gas emissions in the USA alone. As a result, the real estate sector has major reduction targets that they must meet.
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Reduce, reuse, recycle. Studies show that repurposing an existing building produces 50-70% less emissions than new builds. This can make your building stand out and attract tenants - 60% of renters are actively seeking environmentally friendly apartments and 17% say they wouldn't rent an apartment that doesn’t embrace sustainable practices.
What are the top priorities for the 2024 renter?
Creating a seamless and secure living environment is not just a luxury but a necessity in today’s competitive housing market to enhance tenant experience. It’s essential for attracting new residents and ensuring long-term retention. With this year’s projections set to be the largest new supply hit in decades with the delivery of 440,000 multifamily units to be built throughout the year - prioritizing tenant retention has never been more pivotal.
Transform your property into a haven of safety, convenience, and satisfaction for your tenants and stay ahead in the multifamily industry. So, what is top of property managers minds?
Only 17% of property managers and landlords know the building features that tenants wants, so we’ve done the research for you and found out the top 5 asks of a renter today:
Explore our blog on trends that appeal to millennial and Gen Z renters.
Are Wireless Locks really revolutionizing apartment buildings?
The short answer is yes. The future of access control is here – it's wireless, efficient, and elegantly simple.
With 63% of tenants citing a “lack of security” as their primary reason for moving out, it’s crucial to have a solution that not only looks good but has the highest level of security.
With Protege Wireless Locks, you can use a single smart card/ fob or ICT Mobile Credential to gain access to and navigate your apartment or multi-tenant building, meaning juggling keys or having to navigate through multiple apps to find the right card for the right lock is a thing of the past. Issue, edit and revoke access from a single platform and gain streamlined access management for better insight thanks to simplified reporting and oversight. Read our quick reference sheet to see the benefits of a one card solution.
Learn more about incorporating wireless locks in your apartment buildings.
Looking ahead, the multifamily industry is rapidly evolving to adopt more sustainable building solutions that rejuvenate our cities while also creating spaces that prioritize tenant retention.