Today's challenging conditions are going to drive tomorrow's excellence

The blog Calculated Risk, which takes a careful look at assorted economic trends, had some interesting information today about trends in rent levels for the first quarter. The information came from a report from Goldman Sachs and showed that the major REITs reported a decline in rents.

The information is consistent with the picture that came through in various first quarter earnings calls. The poor economic conditions have increased vacancies and have driven consumers to look for more concessions in rent.

What does it mean for companies in the multi-family industry? More accountability and more innovation. Marketing, operations, sales, property development, management…each area of the business will need to demonstrate how they can increase productivity with fewer resources.

In a people-driven industry like ours, that’s a challenge and it can leave people feeling unsteady.

The reality is that many tools are available to help drive performance. It’s a matter of getting used to new ways of doing things, of feeling comfortable with shifting from trusted resources and with facing the brutal facts of the current conditions straight up.

Stick to these clear goals and you’ll find you have an organization that can excel, even in these tough times.

clipped from www.calculatedriskblog.com

REITs tend to adjust more rapidly to changing market conditions than the typical landlord, so changes in their behavior are useful signals of turns in the market … Public REITs typically report the rent increases they have achieved on a year-over-year, comparable-unit basis with each quarterly filing. … [the tracked] REITS managed 300,000 units that were comparable to the year-before period in the first quarter of 2009 … In the first quarter of 2009, the major REITs collectively reported an outright decline in rents for the first time since 2004.

REIT Rents, Apartment Tightness, Inflation