Page 6 - Innovative Practice Awards Program - INNOVATION SYMPOSIUM 2017 - C. T. Bauer College of Business

ated with a 5-8% increase in commercial values. In 2016, a study by the George Washington University Center
for Real Estate and Urban Analysis stated that the combined walkable urban office, retail, and apartment prod-
ucts have a 74% rental premium over drivable suburban products (Boyar, 2016).

The city of Houston has already begun to address the walkability issue through projects such as the Downtown
Living Initiative and the Uptown Bus Rapid Transit project. Outside donations have also helped, such as that
from the Kinder Foundation, who committed $50 million to improve the Houston parks system and ultimately
create over 1,500 acres of new parks for the city. Developers have an opportunity to help improve the city’s
Walk Score by setting their sights on highly concentrated areas in the urban core.

AMENTITIES WITH STAYING POWER

According to Apartment List, national average inflation-adjusted rents have risen by 64%, but real household in-
comes have only increased by 18% from 1960 to 2014. As a result, the study stated, “the share of cost-burdened
renters nationwide more than doubled, from 24% in 1960 to 49% in 2014.” In Detroit, Indianapolis, and Hous-
ton, income has actually fallen in real terms, while rents have increased from about 15-25% (Woo, 2016). Hous-
tonian renters have found themselves wanting more than just a roof over their heads for the money they’re
spending. Amenities have played a huge role in attracting tenants.

THE PROMISE OF TECHNOLOGY
Technology is central to the everyday lives of Americans, and developers have recognized the value of its in-
tegration into residential units. While some technologies can become obsolete quickly, there have been some
successful implementations that have improved the daily lives of both tenant and landlord.

Among the most successful technological advancements have been efficient energy usage systems that prevent
frozen pipes and learning thermostats that automatically cater to the resident’s usage patterns, eliminating
wastefulness. Advanced security systems have also become essential. These sophisticated systems include
advancements, such as quicker re-keying doors (Devon, 2016) and features that allow temporary access to the
maintenance staff and track who accesses the system. Equally important is the issue of cyber security, as the
devastation of being hacked is very real. While there is no digital substitute for diligence and awareness, ad-
vancements in security and energy efficiency have proven themselves to be valuable to the consumer.

LOCATION: THE BEST AMENITY
While the adage stating location, location, location can often feel trite, location is still the best amenity in the
Houston multifamily market. The “Live, Work, Play” combination is a substantial driver for empty-nester and
millennial renters. Properties with access to parks and trails, public transit, and proximity to complementary
businesses will benefit from longer life cycles and will do more to attract tenants.

SOLVING THE PACKAGE PROGRAM
E-commerce continues to grow, and as retailers shift towards omnichannel sales, Amazon’s smiling logo will not
be alone in delivery trucks across the nation. The increased frequency and quantity of delivered packages have
become a concern for landlords, in regards to storage and tenant access (Anderson, 2017). One notable example
of addressing this issue is a large apartment operator who recently implemented policy of not accepting packag-
es for tenants in all their 160+ properties across the country (Kusisto, 2015). While this concerningly shifts the
burden towards the tenants, the company believes that the costs associated with tenant dissatisfaction from the

Multifamily - Living Elevated
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