Colorado Real Estate Journal -
A s a society, we often look to early adopters to pave the path of comfort until the masses embrace a new paradigm shift. For example, think back nearly six years ago when the first iPad was released. The critics questioned its usefulness, when a phone and a laptop had the same capabilities. Fast forward to today, the tablets function as everything from mobile personal computers to DJ mixing stations to cash registers. A similar trajectory surrounds the concept of socially impactful businesses, like Toms shoes. Started in 2006 as a pioneer of a new business model, the “one for one,” a buying-and-giving concept, heightened social responsibility and translated across several businesses. Finally, it seems multifamily development is on the brink of a paradigm shift itself – slowly moving toward prioritizing true sustainability, seeking less adversely impactful ways of building, and integrating technology that supports user interaction and energy efficiency. As the population of Denver, as well as other flourishing cities, continues to grow, we need to focus on ways to develop smarter, denser developments that provide shared amenities, creative access to outdoor space and cater to the sectors of the population that need less space and more convenience at an affordable price. Green building is certainly a manifestation of this change. While the smallest of these denser, simpler spaces may not meet the needs of a family of four, the developments increasingly are meeting the needs of millennials, professionals without kids and the empty-nester population. One of the greatest challenges for developers is embracing the trend of smarter, denser developments while still finding a way to make the pro forma work, all within the boundaries of zoning and use regulations, parking requirements, density limitations and potential neighborhood pushback. Part of the job of developers is to work with and educate the communities to the benefits that smarter development can provide. While the inevitability may be more development, we can collectively work together to promote “better” development. There are several trends that are moving the industry toward better development, including: • Building smarter, not bigger – Higher density, thoughtful use of space (built-in storage, large windows, high ceilings), shared amenities, economies of scale in development and energy-efficiency prioritization; and • Integration of technology – Not just for high-end “smart homes,” but rethinking the potential of technology in real estate at all levels as a means to reduce operating expenses, make properties more accessible and affordable, and have an improved impact on the environment. The coming years are an exciting time for multifamily real estate. We will see consumers value a different standard of development: one that they feel as good about actively being part of as they do supporting the developers who embrace the paradigm shift.