By Glenn Felson
TECH CHECKS INTO MULTIFAMILY
Technology can help the multifamily sector continue its strong performance as the U . S . emerges from the pandemic .
The multifamily sector remains extremely robust — and a recent article in Forbes explained it in plain language : “ Because people always need housing , multifamily properties historically perform better than other commercial real estate classes . In contrast to office and retail , which ebb and flow dramatically with supply-and-demand cycles , multifamily typically remains stable and often continues to grow when other parts of the market contract .” Property technology in multifamily is creating not only exciting new amenities and services , but also completely new models . ( For more on multifamily ’ s outlook , see the cover story , pg . 24 .)
Tenant Engagement Apps . Although tenant engagement apps have been mostly focused on other areas of CRE , there is a growing number of players that are entering the multifamily space . Companies like Rise- Building have been around for some time now and provide platforms that offer services like access control , visitor management , package solutions , and operational efficiencies . One company recently launched its product , Sugar , with a slightly different focus . While Sugar offers traditional services like access control and visitor management , its primary focus is building community . According to founder and CEO Fatima Dicko , “ Community engagement is more important now than ever before . As residents spend more time at home , the demand for products that enhance in-building experiences will continue to grow . Properties that are able to offer unique community experiences to potential residents will become more competitive .”
In a similar vein , another proptech company , HILO , provides a service that works across CRE and multifamily , with a Tenant Experience Network that connects people to their building community , neighborhood , and city . The program allows people to access rewards , content , services , and other residents — whether they are in the office , working from home , or mid-commute .
Hardware . While a significant amount of money is going into tenant engagement apps , providers typically require hardware to provide services like access control and visitor management . Access control is one of the most important features to increase usage of these platforms . For example , a tenant can order food delivery through most engagement apps , yet chances are that they will just go directly through DoorDash or Grubhub if they don ’ t have a compelling reason to open the app . Access control provides a necessary utility — like needing the app to enter the building and even to unlock the door to your unit . So , by embedding access into the tenant app , you increase the residents ’ reliance on it — which in theory should lead to adoption of other app-based services .
There are primarily two types of hardware manufacturers : those that integrate with other solutions like third-party access control providers and those that are end-toend and choose not to integrate . Butterfly- MX is an example of an open system . Their intercom offers robust two-way audio / video communication , allowing residents to speak with visitors and unlock doors from their cell phone . Although ButterflyMX has their own end-to-end solution , they allow integrations to third-party systems as well . An example of a solution that chooses not to integrate with third parties is Latch , which offers a suite of proprietary wireless locks and intercom . Although its operating system integrates with in-unit solutions like Google and Honeywell , the hardware does not currently integrate with third-party tenant apps or other access control solutions .
Integrations and Acquisitions . As technology continues to expand into multifamily and different types of services
42 COMMERCIAL INVESTMENT REAL ESTATE MAGAZINE SUMMER 2021