New Renter Demands Spark Developers' Strategic Shifts

Every multifamily market has its own nuanced needs and particularities. Yet developers are noticing commonalities among urban and suburban markets: the desire for community, amenities and flexible space. 

Renters continue to spend more time at home due to remote and hybrid work arrangements, and they are on the hunt for highly amenitized spaces, once considered a luxury, that align with their lifestyle. In response, developers and owners are strategically enhancing amenities and considering how to diversify their portfolios.

Sought-after amenities extend beyond upgrades to wellness programs and include enhanced focus on preservation of natural spaces and abundant access to the outdoors. Upgrades also include beefing up basic fitness centers with saunas, cold plunges and hydrotherapy pools. 

“Residents are craving places where they can connect with others, and our developer partners care about creating them,” said Joseph Sinnett, principal and team leader at Kahler Slater, a national architecture and design firm. “We're seeing more mindfulness in what constitutes an amenity, and some key examples of this revolve around connection to outdoor space and community.”

Sinnett said planning how outdoor space is used — whether in private, semi-private or public settings — is a design imperative for success in new development or renovation. Integrating natural elements into the rental experience must be done effectively at varying scales as amenities are now viewed as an extension of the home. 

“Amenities should support the way renters live,” said Trina Sandschafer, executive vice president and design principal at Kahler Slater. “The convergence of residential, hospitality and corporate are now overlapping to create a modern rental experience. Our home needs to be the place where we work and welcome guests, and needs to be our respite.” 

Pre-pandemic, renters were not as vocal in their search for an experiential lifestyle, but it is currently one of the most requested features for those looking to move. 

To respond to the needs of today’s market, Kahler Slater is working with developers who want to create a lifestyle based on the vision of personal brand and experience. Marquette Cos. is a Chicago-area developer and manager that is committed to delivering an exceptional living experience. It has been working with Kahler Slater to push the boundaries of the existing market and deliver a desirable product in prime locations, Sinnett said.  

“Renters-by-choice are looking for an experiential lifestyle,” said Chris Yuko, director of development and acquisitions at Marquette Cos. “To respond to the needs of today’s market, we work with Kahler Slater to consider how to create an environment that aligns with the future vision of ‘one’s best self.’"

There is a growing movement to design amenities and experiences that are authentic to each development, Sandschafer said. Through the early design process, Kahler Slater works closely with the developer or owner to create a concept that reflects the lifestyle of their future residents and reflects their client’s goals.

In one of the firm's recently completed apartment developments, amenities included a solarium workspace with ample light exposure and indoor plants — similar to what renters might find in a single-family residence. Another recently completed project offers a carefully curated art package. 

In addition to amenities, location is a driving factor for residents. Having a feeling of belonging is more important than ever. Sinnett said the idea of community has evolved and increasingly involves seamlessly “stitching,” or blending, into the landscape or neighborhood.  

“Forward-thinking developers and owners are looking beyond the walls of their development,” Sandschafer said. “In each new project, we are evaluating what amenities already exist as well as the natural characteristics of the neighborhood. This provides our clients with a strong idea of how to curate the lifestyle their residents desire. Our wide lens of experience creates a better result for our clients as well as their clients.” 

Morguard Management Co. is an owner and property management company that takes resident satisfaction and amenities very seriously, Sandschafer said. Morguard has been working with Kahler Slater to enhance high-demand amenities in several of its properties.   

“While our resident satisfaction is consistently high, we are continuously evaluating how we can reinvest and provide an exceptional living experience for our residents and communities,” said Samantha Heckert, senior regional manager at Morguard Management Co. "Through our partnership with Kahler Slater, we have leveraged both data and design to identify the changes to our common amenities that will yield the most significant positive impact on our residents' experience.” 

Developers are listening to the market and responding by shifting the types of projects they create. Proactive property owners and developers are pivoting within their markets, diversifying their portfolios and embracing new asset types, product mixes and amenity packages, Sandschafer said.

Clients who were previously working only in the urban-core environment are now expanding out toward suburban corridors. This shift hews closely with migration patterns that continue to sway in favor of suburban markets.  

Shifting further, suburban developers who have focused on areas outside of cities are expanding their geographic presence and looking outward to different states.

“Diversification is another part of the puzzle,” Sandschafer said. “Embracing new asset types, such as mixed-use properties and build-to-rent, or BTR, communities is essential to keep up with market demand. Communities with an environment conducive to building connections are increasing in popularity among renters and developers.”  

With clients focusing on differentiating their offerings across urban and suburban environments, Kahler Slater recognizes that these in-demand amenities and experiences are imperative to the success of a developer's investment and the overall well-being of the people who are part of these communities. Sandschafer said the mindset shift for improved lifestyle experiences among renters is not a short-term play, but will become the new normal.   

This article was produced in collaboration between Kahler Slater and Studio B. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to [email protected].