Multifamily Market Forecast with Ben Schall

A foundation for leadership in real estate

Ben’s unconventional path to real estate began at the New York City Economic Development Corporation, where he transitioned from city projects to private development through roles at Vornado Realty Trust and Rouse Properties. This foundation of repurposing underutilized spaces and reimagining communities shaped his approach to development. At Seritage Growth Properties, he cultivated a collaborative culture while overseeing the redevelopment of Sears properties—a precursor to his role at AvalonBay.

Driving growth through culture and technology

AvalonBay’s focus on cultural values—integrity, caring, and continuous improvement—resonates with Ben’s leadership ethos. These principles guide decisions as the company navigates shifts in the multifamily landscape. As Ben emphasized, the ability to adapt and optimize is critical.

A prime example is AvalonBay’s embrace of technology. The company was an early adopter of AI-based customer interactions through EliseAI, centralizing operations to enhance efficiency and the customer experience. Additionally, AvalonBay’s "neighborhood teams" strategy maximizes the value of co-located assets, optimizing operational yields and offering a cohesive resident experience.

Navigating market shifts and future strategies

While AvalonBay’s core portfolio remains rooted in coastal suburban markets, the company is expanding into select Sunbelt markets like Austin. Ben discussed the careful timing of these moves, highlighting his data-driven approach to market entry. Despite oversupply concerns in some areas, AvalonBay sees long-term opportunities in regions with strong demographic and economic fundamentals.

In response to changing tenant needs, AvalonBay has adjusted its development approach. Units are now larger, with features like dens and lofts catering to remote workers. Amenities are tailored for individual productivity. These shifts position AvalonBay to attract and retain tenants in an increasingly competitive market.

Adapting to regulatory and economic dynamics

Ben addressed regulatory challenges, noting that supply-driven solutions are essential for addressing housing shortages. He expressed optimism about AvalonBay’s ability to thrive amidst evolving regulations and economic policies, leveraging its scale and cost-of-capital advantage to maintain leadership in the sector.

The future of multifamily investment

As multifamily development slows nationwide, AvalonBay’s disciplined approach to capital allocation and development timing sets the company apart. Its focus on suburban coastal markets and strategic entry into new markets positions AvalonBay to capitalize on long-term trends while navigating near-term headwinds.

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