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Supply-chain issues continue to affect multifamily sector
Supply chain problems are affecting multifamily operations across the board. According to Drew Gravina, senior vice president of facilities at Morgan Properties, the issues range from standard apartment turnover activities to value-add upgrades to resident work orders to contracted services.
“Nothing has been spared,” he says.
The challenges are seen in both ground-up development and value-add repositioning.
“We are not a development firm, so we are experiencing these issues on the value-add side, but my sense is that both areas are impacted similarly,” says Gravina. “Each presents different challenges.”
Ground-up development needs to be completed to start generating revenue, and every setback or delay in production delays achieving move-ins and generating revenue. By contrast, repositioning has more flexibility in timing and can be nimble in adjusting business plans and targets to address the challenges while still operating the business.