2018 was once a robust year for commercial actual estate, specially in multifamily. There are greater renters than at any time in 50 years, PropTech became a undertaking capital darling, and metropolis centers persevered their renaissance, leading to new urban development and historical renovations.
Smart residences also had an amazing year as Echoes, Nests, and clever locks took over rental units and university dorms.
Yet, in accordance to the Urban Land Institute, 2019 will be defined by way of a more ominous term: Uncertainty. No one is aware of how new technology will have an impact on the industry, or if the less expensive housing crisis will begin to subside. Analysts expect the economy to slow, which likely potential development will gradual as well.
Despite the uncertainty, clever residences are nevertheless in role to thrive. That’s due to the fact smart condo technological know-how affords something for each and every multifamily developer: price savings, flexibility, a aggressive edge, and future-proof investments.
We count on 2019 to be a breakout year for clever apartments, each in science and the normal dwelling experience. Here are 5 trends to watch in the coming year:
Smart Appliances: The Hot New Amenity
In 2018, many apartments adopted clever domestic devices like locks and thermostats, but most nonetheless use traditional fundamental appliances. We believe that will change in 2019.
The benefits of smart appliances (e.g., refrigerators, washers, and dryers) are the identical as smart residences themselves: they are greater electricity efficient, easier to preserve and create a higher person experience.
Companies like LG are continuing to enhance their smart home equipment to make them more inexpensive and beneficial. Residents can now test on their laundry, flip off the oven, and prompt their robotic vacuum all from their smartphone.
As a ways as most popular facilities go, in-unit washer and dryer are frequently pinnacle of the list. Smart home equipment make daily chores even more convenient, and additionally lead to full-size electricity financial savings for properties. Look out for extra residences advertising smart appliances as facilities in 2019.
The Rise of Managed IoT Platforms for Multifamily
Multifamily builders are shortly realizing how tough it is to outfit an entire constructing with smart domestic devices and appliances. The complexity of such a device goes a long way past putting in a Nest thermostat.
For IoT devices to join and communicate, rental buildings need an ecosystem of software and hardware that integrates mechanical systems, electrical, networking, and on line applications. Property developers have two options: Build a custom IoT platform, or use a managed IoT platform.
Managed IoT platforms build and keep the ecosystem so that builders can easily onboard new gadgets and customize their buildings. Managed IoT structures for multifamily additionally tie in property administration software and get entry to control.
As more rental communities include clever devices, look out for the rapid adoption of managed IoT systems to support these devices. two
“Apartment as a Service” Goes Mainstream
As the affordable housing crisis deepens and construction slows, startups and real estate behemoths alike are getting creative with new housing models.
In 2018, several Apartment as a Service providers got their start or raised significant funding. In 2019, look out for Apartment as a Service (AaaS) to have a breakout year.
There are two different variations of AaaS. The “apart-hotel” model, pioneered by WeLive and Locale, offers fully-furnished living spaces for extended stays. Roommate houses, like Bungalow and HomeRoom, curate groups of people to live together in repurposed single-family homes. Medici Living– with ambitions of becoming the WeWork of Co-Living– just raised $1 billion to expand their apartment share platform across Europe and beyond.
Driving the adoption of Apartments as a Service is technology. A traditionally-run apartment community could never swap out residents every few days (at least not at scale). With mobile, cloud, and IoT computing, anything is possible for this new breed of multifamily landlord.
Coworking as an Amenity
WeWork saw the shifting workforce landscape and capitalized impressively. Now apartment communities are trying to better serve the growing population of freelance and remote workers by providing coworking as an amenity.
Business rooms are nothing new in apartments, but they don’t meet the needs of today’s community-centric professional. Residents want to work in beautifully-designed spaces with natural light and a collaborative vibe. They want what WeWork has created, but not have to leave their building to get to it.
Some communities are responding by building large, open amenity floors with a variety of seating options. Others are adding actual coworking spaces that are open to non-residents as well. Expect to see the popularity of Coworking as an Amenity rise in the coming years, starting now in 2019.
Smart Buildings Will Find Their Killer Use Case
Smart buildings have been around for several years, but it has taken some time for people to see their true value. After all, why do building systems need to be connected to the internet when they’re already connected to each other?
The answer will finally become clear in 2019: Data. Data from a building’s IoT platform can help property managers conduct preventative maintenance, improve building usage, and automate routine tasks.
The cost of IoT sensors has dropped dramatically, which means buildings can afford to put them everywhere: on building systems, in hallways, and in amenity spaces (and with managed IoT platforms, new sensors can be easily added and removed). Data from these sensors can be analyzed with machine learning to generate insights on how to improve the property.
But that’s only half the equation. Smart building systems and devices can use those insights to automate functions and tasks. For example, a building’s HVAC can generate its own work order when a filter needs replaced.
In a way, this trend is a consequence of other trends coming to fruition: smart appliances, smart devices, and managed IoT platforms. Together, hardware and software will allow more buildings to benefit from smart building data and automation.