Developer Bob Hall got his start buying an old building in a deteriorating downtown to house his import business. He didn’t know about due diligence, deferred maintenance or building codes and after refinancing then selling his house to fund the required repairs swore he’d never buy another building… until he looked at his tax return. He was making more money renting out the extra space than the import business was pulling in… and he was hooked.
It Is All About the Dogs for apartment building investment according to industry insiders speaking at a recent Bisnow conference: Woodbranch Management President Philip Schneidau says Market Square’s dog run was the best thing about the project. (The second-best part is the building’s liquor license. “What happens is you get home from work, walk your dog, grab a bottle of wine and meet your neighbors,” Schneidau said. “It’s a great life. That’s the magic.”)
Here’s my Exec sum of their salient points:
- Households with at least one pet jumped 35% during last decade to 74.1 million
- Dogs are favorite pet, with 43.3 million
- Dog ownership surging among singles and renters.
The Competitive Situation:
- Being pet-friendly has shifted from competitive advantage to industry standard.
- Competitive disadvantage to not allow pets.
- Not being pet-friendly can be the tie-breaker or something that instantly rules out a property.
- Estimated being pet-friendly can boost occupancy at least