On April 10th, ConnectCRE is hosting Connect Phoenix Multifamily, SFR & BTR, at The Westin Kierland Resort & Spa. We caught up with one of our panelists, Trammell Crow’s Nate Stum, Senior Vice President for the Phoenix Market, to ask him a few questions about the current multifamily business environment.

In a high-growth market like Phoenix, is maintaining a competitive lead easier or more challenging compared to a slower-growth market?

Nate—In a high-growth market like Phoenix, I believe maintaining a competitive lead is more challenging compared to slower-growth markets. The significant job and population growth inevitably attract attention from multifamily developers and capital investors, leading to increased competition. As a result, we share the market with some very capable competitors, which keeps us on our toes and always finding ways to improve our product and differentiate. Fortunately, our strong local presence and proven track record in the Phoenix market have enabled us to remain a leading, best-in-class developer. 

In terms of site selection, is it more a matter of anticipating where the demand is going to be or responding to the demand?

Nate—To be competitive, it’s important to be doing both. You have to be careful in being too early in an area that hasn’t seen the demand because proof of concept is important for risk mitigation and attracting capital. That said, selecting a site in an area with a lot of supply and/or pipeline presents its own challenges. In either scenario, our strategy is to be selective in the sites we build to have a locational advantage over the competition. 

What is the most important factor in attracting renters in a competitive environment? 

Nate—We strive to deliver the best rental product in any submarket. We do this by focusing on designing our buildings with architecture and design unique to the location and site versus stamping out a repetitive prototype. Additionally, we incorporate high-end hospitality-focused interior design and FF&E to complement top-of-market amenity offerings. Attention to detail is something we take a lot of pride in. We also attempt to develop in areas with limited competition. We are doing this in Central Scottsdale, where very little new apartment development has occurred due to the challenges in getting zoning to accommodate multifamily projects.