Multi-Housing News - July 2009 - (Page 4)

Where’s the Money? At long last we seem to be slowly emerging from the worst economic downturn since the Great Depression. Every company and every person in America—and around the globe—has been affected by this crisis. For players in the multifamily industry, the economy is making it difficult to increase rents, and it’s creating downward pressure on occupancy in many markets. Factor in the competition from the shadow market, rampant job loss, and renters doubling up…and it’s not a pretty picture. Some markets, however, are doing better than others. In this issue of MHN we take a look at the Mid-Atlantic region (“Market Report,” page 12) where—especially in Washington, D.C.—stability and strong fundamentals are appealing to investor confidence. When will the recession end? According to a recent poll by the National Association for Business Economics, more than 90 percent of economists predict it will end this year, but they acknowledge the recovery will likely be bumpy. About 74 percent of the economists surveyed said they expect the recession—which is the longest one since World War II— to end in the third quarter. Another 19 percent predict the turning point will come in the final three months of this year, and the remaining 7 percent say the recession will end in the first quarter of 2010. The apartment industry is weathering the recession, but there will be more challenges ahead— especially since the success of the multifamily sector is so tied to job growth. While Wall Street has finally starting seeing upward action, unemployment is at 9.4 percent. This is the highest it’s been in more than 25 years. The United States shed 345,000 jobs in May, according to the Labor Department’s monthly jobs report. That’s fewer jobs lost than in previous months; however, millions of households are grappling with joblessness and lost working hours. And many of these households live in apartment communities. The economic slowdown has resulted in a more cost-conscious mindset shared not only by apartment residents but also by apartment owners and their management teams. In this issue, Associate Editor Erika Schnitzer looks at revenue management strategies (“Balancing Act,” page 24). Get tips for maintaining occupancy, and create a disciplined approach to mitigating the risk on today’s higher percentage of riskier applicants. Last, but not least, don’t miss this month’s investment feature (“Tougher Standards,” page 10) by Keat Foong, executive editor. Her interviews with mortgage bankers provide insights into the tighter underwriting standards currently in place. Among the criteria considered in an acquisition or refinance loan application are the level of concessions, the amount of capital improvement needs, and the extent of the employment base. What’s your view? If you have an interesting case study to share with us, shoot me an email or join MHN’s online conversation today! GROUP PUBLISHER & SHOW DIRECTOR Daniel J. Corcoran daniel.corcoran@nielsen.com EDITOR-IN-CHIEF Diana Mosher diana.mosher@nielsen.com EXECUTIVE EDITOR Keat Foong keat.foong@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 Jeffrey Steele ONLINE NEWS EDITOR Anuradha Kher anuradha.kher@nielsen.com MHN BLOG Jack Kern Daniel Gehman PRODUCTION MANAGER Barbara W. Lau barbara.lau@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 ASSOCIATE PUBLISHER Natasha Selhi natasha.selhi@nielsen.com 516-682-6041 ADVERTISING REPRESENTATIVES Associate Publisher: Natasha Selhi natasha.selhi@nielsen.com 516-682-6041 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 Angie VanGorder 717-399-1900 ext. 176 MHN@theYGSgroup.com Diana Mosher Editor-in-Chief Correction Rick Graf is president of Seattle-based Pinnacle, an American Management Services Company. Pinnacle is a third-party fee manager of multifamily housing, with approximately 175,000 units under management. Graf was incorrectly identified as president of Scottsdale, Ariz.-based Pinnacle Development in our June issue (What’s Next). 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: Andrew Bilbao • 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 MHN ONLINE To share your comments with our readers, email diana.mosher@nielsen.com 4 July 2009 | Multi-Housing News | Official Publication of Multi-Housing World http://www.multi-housingnews.com

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

Multi-Housing News - July 2009
Contents
From the Editor
Executive Insight
Market Pulse
Profile
Market Report
Management
Case Study: Luxury
Finance
Kitchen & Bath
Products & Services
Tech Trends

Multi-Housing News - July 2009