Apartment / Multi-family Housing

Better, faster decisions for profit maximization

About the industry
The Bureau of Labor Statistics considers the Apartment/Multi-family Housing industry to be part of the Real Estate and Rental and Leasing sector. In a brief overview of this sector, the BLS writes, “The Real Estate and Rental and Leasing sector comprises establishments primarily engaged in renting, leasing, or otherwise allowing the use of tangible or intangible assets, and establishments providing related services. The major portion of this sector comprises establishments that rent, lease, or otherwise allow the use of their own assets by others. The assets may be tangible, as is the case of real estate and equipment, or intangible, as is the case with patents and trademarks. This sector also includes establishments primarily engaged in managing real estate for others, selling, renting and/or buying real estate for others, and appraising real estate. One of the main components of this sector are the real estate lessors industries (including equity real estate investment trusts (REITs)).”
How do we serve your industry?
Competitive Analytics delivers data and analytics solutions to best in class apartment companies such as Irvine Apartment Communities, Camden Realty Trust, Western National Group, FarWest Management Corporation, C.J. Segerstrom, E&S Ring Management Corporation, Sares Regis Group, Shea Apartment Communities, Lyon Realty Advisors, and Shores. Competitive Analytics collaborates with owners, managers, and investors of multifamily portfolios by conducting proprietary portfolio and market analyses – empowering executives to make better and faster decisions. Typical assignments include rent optimization, premium optimization, demand & supply forecasting, product segmentation, competitive rankings, development and acquisition feasibility analysis, rehab ROI decision modeling, demographic and psychometric forecasting, and integration of our proprietary software, DECIPHER™. In essence, Competitive Analytics collaborates with forward thinking apartment owners that place a high priority on business intelligence and predictive analytics.
Rent Optimization
Our proprietary RVO model (i.e. Rent-Value-Optimizer) is an innovative profit maximizing tool based on six vital forces: 1) Renter’s relationship between “rent” versus the “value” assigned to all tangible and intangible features and amenities for a specific neighborhood, apartment community, floor plan, and unit; 2) Identifying target and market equilibrium occupancy levels; 3) Competitive and analogue price/value relationships; 4) Unit by unit value/premium adjustments; 5) Micro-economic trends; and 6) Macro-economic trends. In essence, our RVO model is based on the pure additive and synergistic relationship of rent paid versus a renter’s perspective and assignment of value of the tangible and intangible amenities received. This is truly unlike any method for evaluating the economics of multifamily development, operations, and management. Additionally, our RVO model allows for myriad assumptions to be adjusted by the client for an infinite number of scenarios to be evaluated. In contrast, software programs such as YieldStar, Rainmaker, and Yardi, albeit excellent inventory pricing and property operations software, require significant upfront fees, extensive training, high per unit costs . . . and do not provide feature-specific valuation estimates nor provide external micro and macro “market driver correlation” to apartment market performance.
Premium Optimization
CA’s custom “unit-by-unit” premium analyses provides unit-by-unit pricing via myriad primary premium/discount drivers. Each unit within an apartment community is assigned a unique premium/discount based on the location of the unit within the complex, the characteristics of the unit, and the externalities which positively and negatively affect the unit. A dynamic heat map is also employed to visually display the premiums/discounts for all units, buildings, and floor levels.
Demand & Supply Forecasting
CA’s demand and supply models evaluate historical, current, and forecasted apartment demand for myriad consumer segments cross tabulated by numerous product types. Competitive Analytics employs over 30 unique apartment demand models which calculate “net demand” and “relative net demand” which leverage off our extensive time series database of well over 100,000 economic and market indicators.
Product Segmentation
CA’s analysis of apartment product trends are classified through a taxonomy of nine primary “segmentation attribute categories” encapsulating over 800 specific product segment features. Our proprietary product segmentation models are designed with interactive data visualization dashboards in order to quickly determine which product segments are in high or low demand and/or which product segments are trending positively or negatively over historical and forecasted time periods.
Competitive Rankings
CA provides custom and interactive ranking models and heat maps by company, apartment community, and/or geo-submarket.
Development and Acquisition Feasibility Analysis
Our development and acquisition feasibility analysis includes extensive revenue scenario analytics overlaid with comprehensive risk assessment modeling (i.e. project, competitive, geo-submarket, market, and political risks) which output to interactive multi-scenario ROI forecast models.
Rehab ROI Decision Modeling
CA conducts comprehensive rehab feasibility analyses which evaluate the cost and rent/value relationship of all potential upgrade (or downgrade) scenarios that may involve internal and/or external amenities. Models also involve the analysis of marginal rent increases/decreases and break even analysis when amenities are upgraded/downgraded. Our extensive rehab ROI analytics process involves identifying, assessing, analyzing, and recommending key amenity components driving market rental rates within a designated competitive market area. Methodologies include conducting comprehensive primary and secondary market research as well as econometric modeling, distribution analysis, statistical modeling, scenario analysis, and the incorporation of several proprietary valuation models.
Demographic and Psychometric Forecasting
Demographic and psychometric analysis is a technical term for current and prospective consumer profiling. We conduct a combination of in-depth group interviews and individual “one-on-one” interviews that acquire valuable feedback about apartment amenities and features. The purpose of conducting one-on-one as well as group interviews on a regular basis is to accurately track “perceptible resident value” which provide valuable consumer intelligence in order to maximize revenue opportunities and enhance operational efficiencies. Our overall objective is always to obtain “quantifiable resident insight” in the fastest time period possible. In essence, reliably aggregating, comparing, analyzing, and anticipating resident perceptions, suggestions, recommendations, and complaints via a targeted group of individuals that live, work, and/or recreate within a specific apartment community and/or within competitive communities delivers valuable market intelligence for management to base important decisions. Moreover, field surveys can be the most effective and cost efficient method of receiving insightful market intelligence at the grass roots level. Comprehensive tenant surveys help keep pulse on tenant satisfaction of community management, amenities/features, and suggestions for improvement.

Make better, faster, profit maximizing decisions

To learn more about how Competitive Analytics can provide customized solutions for your organization, contact us to tell us more about your unique needs.
  • Thank you for another informative forecast session. We find it provides an excellent perspective. Many thanks for the invaluable insights. Given the outstanding feedback from clients and caliber of your lecture, I would like to extend you through the next 6 months. Please let me know if you can accommodate.

    Director, The Landing For Men of Newport Beach
  • One of the high points of my job is from time to time having the good fortune to experience phenomenal business structures and intellectually driven individuals. You definitely fit both of these in spades.

    General Manager, South Coast Plaza/C.J. Segerstrom
  • Thank you again for presenting at our council meeting. We were all very impressed by you and your company’s service.

    Executive Director, IREM Orange County
  • Simply stated, CA exceeded our expectations on all projects. With CA’s passion for accuracy, obsession with using the latest cutting-edge technology, and devotion to client service, I strongly recommend without hesitation the selection of CA as the top choice among market consultants in business today.

    VP Sales and Marketing, SunCal Companies
  • A few weeks ago I sent our friends at Competitive Analytics our monthly report to import into a new iPad tool they created. WOW! It is amazing how they turned an almost impossible collection of data into an intuitive one with built-in analyzers for your iPad!

    Director of Sales & Technology, NES Rentals
  • Competitive Analytics’ approach and methodology is well beyond any firm we experienced. They utilize advanced mathematics and proprietary software in order to assist us with specifically identifying revenue maximization and product optimization. Needless to say, they were worth their fee.

    Chief Financial Officer, Boeing Realty Corp.
  • We use a company called Competitive Analytics to provide projections, trends and metrics based on the information from our own actual results as well as other companies. We have found that this firm is significantly more accurate than any of the other “Economic Forecast” that are done in Southern California.

    Vice President, Business Development, Western National Group
  • When I need comprehensive economic analysis, precision market research, and strategic advice with measurable results, I call David Savlowitz at Competitive Analytics. Competitive Analytics has completed an array of demand studies, pricing studies, forecasting, and qualitative research for our company; and on each and every occasion CA provided phenomenal deliverables that added much insight and value to our business.

    Division President, KB Home
  • Since early 2000, Western National Property Management has engaged Competitive Analytics to assist in developing quantitative and qualitative forecasts specific to the Southern California apartment market, and to assist in forecasting strategic and tactical plans for our clients’ properties. The information garnered from this annual analysis is an integral component of our annual budgeting and business plan process. Due to the proven track record of Competitive Analytics with regard to our portfolio, we have come to rely on their insights and observations about the economic climate that directly impacts how we do business. Competitive Analytics is an intelligence firm that conducts comprehensive market research and precision analytics.  They employ a myriad of innovative methodologies and technology to produce objective, evidence-based market knowledge to assist companies to reach higher levels of performance and profitability.

    President, Western National Group