Locks, surprisingly, isn’t the only multifamily executive to gain inspiration from fast food. Bill Fanning, Southern California division president of Chicago-based Silverstone Communities, can’t stop talking about his favorite West Coast burger joint, In-N-Out Burger. “I have been going there for 15 years, and every time I go I am amazed that the quality never changes,” he says. “The people you meet are always professional; I’ve never had a bad experience. We strive for the same level of quality, customer service, and professionalism.” He attributes much of that quality control to the restaurant’s simple menu—a technique his company replicates for the design of its condo units. To make its buying process as easy and flawless as possible, Silverstone offers a standard high-end finish package without customization options.
RETAIL A trip to the mall offers lessons on marketing and sales.
If you’re looking for a cool, high-energy environment, the Apple Store is the place to be. The executive team of AMLI Residential took a field trip to the forward-thinking store in hopes of creating a similar atmosphere at its rental communities. His team met with Apple employees and walked away with several key ideas that the company is now implementing at new properties—namely, how to create a more interactive leasing space. “You don’t see anyone behind a desk,” Hallsey says. “We have the leasing agents stand up and be more interactive with the customer.” In the leasing office, prospects can sit at a coffee bar, enjoy a cup of java, and with the help of an agent fill out an online lease or arrange virtual furniture in their prospective unit. AMLI is extending this lively environment to the clubhouse, too. These areas, traditionally outfitted with heavy furniture and dark colors to create a home-like feel, now feature lots of big screen TVs with constant visual entertainment and plenty of big, airy spaces.
The retail industry offers more than just lessons on good looks. To price its units, Village Green Cos. replicates the retail model for merchandise pricing. “If you go into Abercrombie and Fitch, the sweaters that haven’t sold are going to be at the front of the store and deeply discounted,” says George Quay, president and COO of the Farmington Hills, Mich.-based company. “The ones that are selling like hotcakes are going to be a little further back, and the price point is going to be pretty high. We look at our apartment communities the same way.”
Village Green prices its units based on a variety of factors such as location, floor plan, and view. An apartment with a fireplace and great view of a park, for instance, will have a higher price tag because of the demand for the unit.
Scot Sellers, chairman and CEO of Archstone-Smith Trust, draws inspiration from another retail tactic: the hiring of quality, part-time employees. “The staffing model in the apartment business is, frankly, pretty old and not terribly thoughtful,” says the executive. “The industry historically uses almost no part-time people, and I believe that’s a mistake.” But it’s a mistake he plans to correct in the near future. He looks to the popular storage and organization chain The Container Store for motivation. “The store has done a fabulous job of hiring part-time people who are engaged and represent the brand well.”
HOTEL Show your residents how hospitable your on-site staff can be.
With its many similarities to multifamily operations, the hotel industry is an obvious place to glean fresh ideas—particularly on ways to improve customer service by taking a close look at high-end hotel chains like Four Seasons and The Ritz-Carlton. AvalonBay Communities, an Alexandria, Va.-based REIT, has borrowed a key operational strategy from The Ritz. Similar to the hotel chain, AvalonBay holds weekly meetings at all of its communities where on-site employees can discuss everything from customer service to maintenance issues. (The Ritz holds its meetings after every shift.)
Dig a little deeper into the hospitality world and you’ll discover more than a model for customer service. Borrowing from the timeshare concept, Strategic Horizons’ Gilmore suggests offering condo residents fractional ownership in a shared ultra high-end home theater room or spectacular kitchen. Sure, someone can put a plasma screen and DVD player in a condo unit, but with a timeshare everyone pitches in, making top-of-the-line equipment financially feasible, explains Gilmore. Plus, residents don’t always have the space for such deluxe amenities.
The hotel industry also offers innovative training models. Quay, who worked for hotels before switching to multifamily, participated in Hyatt’s signature training program and introduced a similar program at Village Green Cos. Hyatt recruits graduating college students for a two-year training course in which they are exposed to all facets of the business. “They develop a great in-house bench of talent and are never in a crisis position for mid- to top-level management, which I thought was very impressive,” Quay says. “Coming to the real estate business, it seemed like a crisis every time a property manager or a leasing consultant left.”