CREJ - Multifamily Properties Quarterly - November 2016
The national vacancy rate has risen the last four consecutive quarters. Most everyone who follows the apartment construction boom realized there would be oversupply at some point and that even hot markets like Denver would soften. One common solution owners use to address this issue is to offer concessions, price breaks or other promotional benefits, but this creates a downward spiral. Owners and operators should look to new marketing techniques that can attract more attention and better convert potential renters. The first question owners must ask is, how do we attract more people? In short, by using local searches, digital outreach and signage. Use local search engine optimization and digital marketing tactics to enable more people to find you online. SEO is not just typing in an address, adding some buzzwords and, badda-bing, your No. 1 on the rankings. It’s about understanding the property, the area where it’s located and what people are searching for. This is where national leasing platforms fall short because they don’t know or take the time to understand these key elements. Max Flats apartments in Fort Collins opened with a number of competitors in the area. Instead of using that national platform that types in “Apartments in Fort Collins,” they targeted nearby locations, large shopping areas and other regional search terms that people commonly used. “We really focused on the local search terms that people were actually looking for near Max Flats,” said Kate Baker, director of marketing and communications. “This wider tactical effort created better results and shot us up to No. 1 above our competition in many key Google rankings.” Additionally, digital display advertising is in a much better place than it was 10 years ago when too many companies were selling “1 million clicks” for a nickel. The best advertising plans are looking at the end goals to achieve specific objectives, such as rental contracts. Once these objectives are established, the advertising can better target the audience from geo-targeting, content, native advertising and geofencing to find people who have visited a specific location. Brokers and leasing managers alike will tell you curb appeal is one of the most important assets for a property. This starts with the property branding and signage, so owners need to make sure these elements fit with the 21st century and provide a positive reflection on what’s inside. The second question owners should ask is, how do we better connect with people? Each year video increases in popularity, and it’s more widely used than ever thanks to faster download speed and more viewing devices. The best thing about video is that it provides the perfect medium to tell your story. “I cannot talk to all my potential customers,” said Clem Rinehart of TreeHouse Development. “So video provides me the next best thing to showcase our property and have people hear what makes our development so special.” TreeHouse’s S*Park development debuted with an immediate 20 percent conversion rate and thousands on the “interested list.” “Video was a big part of the conversation with so many people looking online and able to feel the unique culture of the area our project is in,” said Rinehart. If you’re a new property on the market, you should have a web presence right away. This is key in starting that relationship with potential renters and gets you an early and growing interest list. Also, the sooner you have a website in place, the better for the organic search rankings. Owners need to do a better job communicating, which can be done with advanced programming, branded floor plans, site plan design and custom designed maps. Some developers and property managers forget that they are not the target audience. So when they see a rendering or an architectural floor plan of the project, they understand. The problem is customers may not. Those communication elements need to be directed toward the audience that will end up leasing. We recommend creating well-branded floor plans and site plans that offer a clear understanding of what each product delivers. You can create professionally designed maps that show where your property is in relation to regional highlights and roads. Blu Harbor in Redwood City, California, visually showed its location between San Francisco and Silicon Valley as well as the growing Redwood City lifestyle. This is something it could not have accomplished with a cut-and-pasted search map. Other properties are using advanced programming to show which unit is where and how the entire property lays out. Users can view everything with a simple rollover and click. “Our Kent Place website is a huge sales tool for us,” said Daiva Jarasius of Forum Real Estate. “People that haven’t visited the property can see everything virtually, and those who have can get more specific with what floor plans are in each area of the building. All while being able to drill down to a specific unit and apply for that location online.” Better marketing materials do help. When people are comparing properties and view a well-branded website, are holding a nice print collateral piece or see attractive signage, it makes a difference. If you don’t take the extra effort to communicate what makes your location special, then why should potential tenants care?