Focus Groups for Market Studies

Hi All,

I've recently been charged with putting together a market focus group on what amenity additions renter's see value in for our new construction/developments. Essentially, what amenities really drive leasing. I'm very excited to jump on this, as it's not only a passion and interest of mine, but also because I've been saying for years that we may be building projects that our senior officers think are what renters want, but these decision makers are not really in touch with our target markets and have not lived in apartments in many years.

We primarily build Luxury Class A garden style communities in the Southeast, but in more suburban markets. My question to these higher ups has always been that given the transitory aspect of renters, the impulse to spend more on something that isn't really "theirs" may lead to narrowing our prospect pool and has us competing more with home prices. I've wondered if we would be able to lease-up new communities faster (also obtaining higher economic occupancies more quickly) with more widely affordable rents. This in turn would mean not spending as much on the front end adding amenities that many renters may not see as a "have to have" item. There is a lot of evidence out there that points to people returning to renting given the current economy, but I'm not sure whether this would change the point of view (of most people) that renting is a more temporary solution for housing in our specific markets?

Unfortunately we have a very short time frame to put this together so that our construction company will be able to implement the results on a project that's already under way.

My question to the group is, are focus groups the best approach for market studies given the influx of new technologies out there? We already use online surveys to our residents on a yearly basis, but find that we don't have enough honest reactions that lead us to decisions on what to add for new projects since our polls go out to contacts that are already our residents. They've already chosen to live with us, so asking them if they would prefer something more modern and trendy when they live in a garden style unit in suburban McKinney Texas doesn't seem like a great approach.

I'm curious to know others opinions on this type of research and if the project is worth the time and money versus another possibly unknown service out there.

One final thought is anyone else as tired of the word "Luxury" as I am?

Any tips or info is much appreciated!

First of all--yes, I'm definitely tired of the word "luxury." It has been used so much on almost every type of property that it no longer means anything. Come up with a more unique descriptor that fits the individual community. For instance, if you have a very stylish downtown apartment, you might use the descriptor "chic apartment living" or "sophisticated apartment living" in your logo/tag line. If you have a quiet community in a residential neighborhood, you might choose something like "serene apartment living." Whenever possible, use a descriptor line that says something about the community that they won't hear in every other name or tag line.

As for understanding what amenities residents really want: surveying your current residents may set up an expectation that you will be adding new amenities to their communities rather than a brand new community. It could set you up for some miscommunications, as people never read the instructions/information carefully.

You might consider surveying prospective residents who did NOT rent from your communities. Just a thought.

Here is a good article on the top 10 apartment features for 2010 that was posted mid year last year. You might enjoy reading it.


www.associatedcontent.com/article/300028...amenities.html?cat=3

I am really lucky in that I get "out there" to lease a great deal in my position - I make it a point to tour people when I'm visiting teams so I get to hear their thoughts and see their reactions to our communities. Over the past few years, things have really changed; the prospects whose eyes really light up are the ones for which you've truly painted a picture of how they can build a life at your property....and easily. No one wants to be inconvenienced. Amenities? People are taking their cues from HGTV now, they want "open," they want "updated." You can be standing in your community's beautiful theater room or business center and touting how easy it would be to work at home, but they would probably prefer a computer nook in the apartment so, if they work at home one day per week, they can do it "at home," and not surrounded by their neighbors.

If you're going to load up, I would do in the apartments and I would focus on your menu of services. Provide washers and dryers in the home, built-in nooks/desks, and a great kitchen that has some room to move (counters and maybe a breakfast nook). Esther used the word "serene," that's a great word - any soundproofing is awesome and any features that allow people to create sanctuary in their home.

Pets are huge - provide dog runs, focus on events to bring pet owners together - Yappy Hour vs. Happy Hour - people need community. Create the ability to meet people, but make the apartments very comfortable. And set high service parameters - so many people are still moving because of horrible service, make sure you are hitting service request completion at over 90% same-day.

I don't know if that was helpful - we have a lot of "back to basics" properties - they are so easy to lease because of the value. Luxury is not really where it's at right now, it will be again but prospects don't seem to be "stretching to make it work" right now.

Love the idea of taking notes from HGTV. There are programs that show what it takes to update a home to sell. Some of the first places they always focus are the kitchen and the baths, and these updates always make a big difference. Kitchens and baths would be a good place to look at design trends during your discovery process. I agree that open and spacious are important in floorplan layouts. You can make even a small space feel big if it has a nice open flow. I also notice that they always include a paint color--not "builder white"--but it's always a nice light neutral color with a brighter trim. That's not a new idea, but most apartment communities still aren't doing it.

Good thought process, Steve!