The duo illustrated how some of the headlines have been really pressing for more affordability , and that the supply chain will drive this naturally if allowed . Over the course of the last year rents have increased but right at rates of inflation .
Nicolais described the metro area as a patchwork market in terms of highest rents and lowest rents from quarter to quarter really popping up in different submarkets based upon construction and delivery of units in those submarkets .
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Development Panel
An excellent and informative panel of industry experts discussed development trends . The panel included Kenneth Ho , Tim McEntee and Jeff Wickstrom , and was moderated by Terrance Hunt .
The panel discussed how land deals are getting tougher and tougher on two frontsboth the challenges with the different cities and municipalities and the less sophisticated land owners . The cities end up having so many different priorities and agendas that it ’ s tough just getting deals to go through without making significant concessions that lead to challenges with design . The holdout land owners sometimes think their value is much higher than the going rate , so this makes it increasingly more difficult to get deals done .
The talent pool is getting thin . Both talent in design and construction is really getting tough to find . Delays are getting tough right now too . Delays are typically forcing completion timeframes out at least 6-12 months late .
The panel offered the following advice :
»» Get your design group in front of the city much earlier
»» Engage with the city at least 18 months before the deal is ready
»»
Spend more time with the younger people in your operation and listen to what they say
" Don ' t Be Disrupted , Be the Disrupter !"
Michael Dominguez , Chief Sales Office for MGM Resorts international presented a fascinating overview of how to connect the dots in this crazy high tech and political world .
Dominguez outlined the largest challenge as the ability to adapt and speed at which we all have to be willing to change . If you ’ re still operating with last year ’ s strategy , you ’ ll soon become obsolete . In one single “ internet minute ” there are : 16 million text messages sent , 3.5 million Google searches , 1.8 million Snapchats , nearly 1 million Tinder swiped and 342 apps downloaded . You better keep up ! Half of the Fortune 500 companies since 2000 haven ’ t kept up , and have since disappeared .
Dominguez illustrated the rate at which humans are able to adapt compared to the rate of technology- humans simply cannot keep up with this rate of change . Michael tossed in several quotes , including Charles Darwin ’ s classic - “ it is not the strongest of the species that survives , nor the most intelligent … it ’ s the one that is most adaptable to change .”
Dominguez cruised through an excellent analysis of the hotel industry and how it compares to the apartment industry . Hotels are experiencing record occupancy rates and have since 2009- with each year the number of occupied hotel rooms increasing year after year .
Dominguez also discussed his view on the stock market , the debt of the Chinese , tax reform , what companies like Walmart , AT & T , Amazon , Netflix , Nordstrom and Apple are up to , and the grand political theater we are witnessing . With all the constant change in Michael ’ s areas , it won ’ t be long before we ask him back for an encore at a future Econ .
Thanks to all the great speakers and sponsors of Econ2018 !
www . aamdhq . org FEBRUARY 2018 • TRENDS | 25