Multi-Housing News - March 2009 - (Page 6)

Views from the Top MHN asks multi-housing leaders to share recession strategies As the global economic crisis continues to play out, we’re sure to see innovative business ventures blossom as latent entrepreneurs find themselves suddenly unemployed. Certainly in the apartment industry, restructuring and layoffs are resulting in creative thinking, interesting new alliances, and the creation of divisions devoted to business opportunities resulting from the economic downturn. Our MHN Daily News digital edition continues to be an important source of information covering these aspects of the multifamily industry as well as market snapshots, economic updates, exclusive interviews with the industry’s most interesting executives and much more. If you don’t already receive this business tool, sign up today at www.multi-housingnews.com/newsletters. Keep us in the loop with what’s going on at your own organization—and send us your regional news tips as well. Online News Editor Anuradha Kher can be reached at anuradha.kher@nielsen.com. MHN Daily News recently reported that, according to the U.S. Census Bureau and the Department of Housing and Urban Development (HUD), multifamily housing starts for buildings (five units or more) are at a historically low number: the rate of 114,000 units in January 2009. Multifamily housing starts have been decreasing for some time now according to this source, going from 400,000 units in June 2008 to 247,000 units in October, 166,000 units in November and 145,000 units in December. The January 2009 statistics are noteworthy, but even more so is how the industry will react to these challenges. In this issue of MHN Magazine we tackle this topic (“Riding Out the Storm,” page 12). “Every company and every person in America is affected in some manner by the current economic and financial crisis, our company included,” says W. Dean Henry, president, Legacy Partners Residential. “There is little need for new multifamily product in our markets because there are no new jobs—and, in fact, a loss of jobs—to support new development.” Legacy Partners Residential’s 2008 business plan called for selling approximately $550 million of multifamily projects, but none were sold because 2008 became a buyers’ market. “We elected to hold on to the assets in the hopes of selling into a more favorable market.” Henry expects there will be much more distressed rental apartment product on the market in the next six to eight months as owners become unable to refinance these properties. Tom Bozzuto, co-founder and CEO, The Bozzuto Group, points out that the economic climate has created challenges for his organization’s development and acquisitions activities, but created opportunities for its third-party management and construction business. Some aspects of the industry never change regardless of how the economy is doing. “By focusing on resident satisfaction, we are able to retain residents that would otherwise consider relocating,” notes Jeffrey Friedman, president and CEO, Associated Estates Realty Corp. “Over 50 percent of our new residents come to us through the Internet, so we continue to prioritize this technology by making the experience as customer-friendly and convenient as possible.” What are you doing today to identify new opportunities during the recession? And how are you showing your residents that you value their business? Let us know and we’ll share your strategies with MHN’s readers. MULTI-HOUSING NEWS MHN GROUP PUBLISHER & SHOW DIRECTOR Daniel J. Corcoran daniel.corcoran@nielsen.com ASSOCIATE PUBLISHER Natasha Selhi natasha.selhi@nielsen.com ADVERTISING REPRESENTATIVES Associate Publisher: West, Mountain and Southern States Natasha Selhi natasha.selhi@nielsen.com Account Executive: Northeast and Midwest States Douglas Runner douglas.runner@nielsen.com 856-415-0301/fax: 856-415-0302 Director of Digital & Live Events: Jason J. Wafalosky Multi-Housing World/Multi-Housing News jason.wafalosky@nielsen.com 484-228-8481 CLASSIFIED & GALLERY ADS Account Executive: Fatima Ruiz fatima.ruiz@nielsen.com 646-654-5763/fax: 646-792-7108 MARKETING DIRECTOR Kevin Marty kevin.marty@nielsen.com 516-682-6149/fax: 516-682-6166 ONLINE PUBLICATIONS www.multi-housingnews.com MHN Daily Newsletter MHN Property Management MHN Green Building & Design MHN Finance & Investment EXHIBIT BOOTH SALES & SPONSORSHIPS Jason J. Wafalosky jason.wafalosky@nielsen.com 484-228-8481 Multi-Housing World Expo & Conference REPRINTS The YGS Group Mike Shober 800-290-5460 ext. 129 MHN@theYGSgroup.com EXECUTIVE EDITOR Keat Foong keat.foong@nielsen.com EDITOR-IN-CHIEF Diana Mosher diana.mosher@nielsen.com CREATIVE DIRECTOR Jonathan Marsland jonathan.marsland@nielsen.com ART DIRECTOR Michelle Matteson michelle.matteson@nielsen.com ASSOCIATE EDITOR Erika Schnitzer erika.schnitzer@nielsen.com CONTRIBUTING EDITORS Christopher Hosford Lisa Iannucci ONLINE NEWS EDITOR Anuradha Kher anuradha.kher@nielsen.com MHN BLOG Jack Kern Daniel Gehman PRODUCTION MANAGER Jean Loesch jean.loesch@nielsen.com CIRCULATION Omeda nmhn@omeda.com 800-697-8859/fax: 847-291-4816 LIST RENTALS Nikki Miller 646-654-7261 nikki.miller@nielsen.com Diana Mosher Editor-in-Chief MHN ONLINE To view recent Letters to the Editor, visit www.multi-housingnews.com/letters. To share your comments with our readers, email Diana Mosher at diana.mosher@nielsen.com President: Greg Farrar • Senior VP, Human Resources: Michael Alicea • Senior VP, Finance: Sloane Googin • Senior VP, Marketing: Mark Hosbein • Senior VP, Media & Entertainment: Gerry Byrne • Senior VP, Brand Media and Corporate Development: Sabrina Crow • Senior VP, Retail: David Loechner • Senior VP, Building & Design: Joe Randall • Senior VP, Central Services: Mary Kay Sustek • VP, Licensing: Howard Appelbaum • VP, Manufacturing & Distribution: Jennifer Grego • VP, Audience Marketing: Joanne Wheatley 6 March 2009 | Multi-Housing News | Official Publication of Multi-Housing World http://www.multi-housingnews.com/newsletters http://www.multi-housingnews.com http://www.multi-housingnews.com/letters

Table of Contents for the Digital Edition of Multi-Housing News - March 2009

Multi-Housing News - March 2009
Contents
From the Editor
Executive Insight: Jonathan Rose
Profile: How Owners are Riding Out the Storm
Market Report: Southern California
Development Case Study: A City in the Sky
Finance: Small Loans
Property Management: Marketing Magic
Products: Submetering
Kitchen & Bath: Water and Energy Conservation

Multi-Housing News - March 2009