When deciding the timing of building new properties in the multifamily market, many developers need help obtaining accurate and reliable projections. Staying ahead of the curve requires effective insight as the multifamily market grows. Is it the right time to build your next multifamily property development? Read on.
CBRE is projecting a deceleration in rent increases and a slight rise in overall vacancy rates. While this may improve affordability, it challenges developers to find viable markets where demand still outpaces supply.
Challenges Faced by Multifamily Developers
Multifamily development is troubled with challenges that demand proactive strategies and adaptive responses. The following challenges pose a significant hurdle for developers striving to maintain profitability and competitiveness in the market:
- High construction costs are driven by price increases in materials and labor, exacerbated by economic factors and trade policies.
- A tight labor market presents a noticeable shortage of skilled workers, which can delay projects and increase costs, further complicating the development process.
- Regulatory Difficulties: Developers also face various regulatory challenges that can vary significantly by location. These include zoning laws, environmental regulations, and building codes that are often stringent and can delay the launch or progress of new developments.
Navigate These Challenges
We understand the multifaceted challenges that multifamily developers face in today’s market. Our innovative approach and comprehensive services are designed to address and mitigate these hurdles, ensuring your projects are completed on time and within budget.
Cost Efficiency:
- Utilize Building Information Modeling (BIM) to reduce material waste and optimize labor.
- Employ offsite construction techniques for streamlined building processes.
Labor Market Solutions:
- Operate with a global team of skilled designers working around the clock.
- Maintain continuous project progress with a 24-hour workday model.
Regulatory Expertise:
- Efficiently handle zoning laws, environmental regulations, and building codes.
- Proactively address regulatory changes with in-house experts to ensure compliance and minimize delays.
BASE4 | Your Multifamily Partners
BASE4 plays a crucial role in the multifamily industry by providing innovative and efficient solutions for property developers and managers. We help developers, general contractors, and factories find better ways to build through innovative technology, forward-thinking design, and offsite manufacturing.
Our primary focus is providing top-tier services to our clients to ensure seamless collaboration and unparalleled results.
Thank you,
Blair Hildahl
BASE4 Principal
608.304.5228
BlairH@base-4.com
