2012 Austin Apartment Forecast Luncheon Re-Cap
Tuesday, April 17, 2012, Hire Priority Staffing sponsored and put together the Austin Apartment Association Learn at Lunch. A large audience of on-site management and executives from the Austin apartment industry attended the event, which was held at IMT Monterey Ranch. As follows is a summary of the presentations by the three speakers, industry experts Adam Hamilton, Loyal Proffitt, and Charles Heimsath.
Adam Hamilton: Vice President Development, Grayco Partners
Topic—New Construction: South Shore Austin
- Adam spoke about South Shore Austin, a new luxury apartment residence with a comprehensive retail section located on East Riverside Drive, in close proximity to downtown and Ladybird Lake.
- South Shore has spent considerable resources—9 million dollars—on infrastructure development, including building additional roads and a regional water quality pond.
- Adam described that what sets South Shore apart is that it offers a unique product at various price points. By offering a different product at each price parcel, South Shore generates widespread appeal.
Loyal Proffitt: Executive Vice President, Riverstone Residential
Topic—Fee-Management
- The first issue Loyal addressed is, What is Happening at Ground Level? According to Loyal, higher occupancies and bigger rent increases are occurring, which means that conditions are “lined up for us,” and should be met by “taking advantage of the fundamentals.”
- So What Do We Do? Loyal’s response is to push your comfort zones, think like an owner or asset manager, continue to raise and maximize residence experience, and to simplify your focus.
- This raises the question, How do We Simplify Focus? Understanding your business completely, understanding your client/investor, emphasizing your product, and remembering that, “we are and will always be a people business,” are the keys Loyal advises.
Charles Heimsath: President & Founder, Capitol Market Research
Topic—Austin Apartment Market Overview
- With over 30 years of industry experience, Charles offered an-in-depth analysis of the Austin market. He described that the market has characteristic cycles every seven years or so in which the occupancy rate peaks and falls.
- Over the last 20 years, the Austin market has more than doubled in size, with an average occupancy rate of 94.2%.
- Notably, Charles gave his forecast for the Austin apartment industry: the market will not be overbuilt—due to the financial industry’s underwriting regulations—and there is a 95-96% average occupancy expected in the next 3-5 years.
These three speakers, with such varied expertise, each maintained optimism towards the future of the market. With features such as new construction, job growth, favorable conditions, and increasing occupancy rates, the forecast for the Austin Apartment market is looking bright.
Hire Priority Staffing is a national search and staffing company specializing in the placement of apartment industry professionals as well as healthcare and administrative support personnel. For information on their services or more details on this luncheon, please email info@hirepriority.com or call 866.906.HIRE.
