The Hidden Influence of Storage on Property Value

, , ,

Why giving residents more closet space could be your smartest capital investment.

When developers look to increase the value of their multifamily properties, the focus often falls on flashy amenities—rooftop lounges, resort-style pools, or smart locks with mobile access.

But the secret to long-term value creation might be tucked away in a space you’re overlooking: the closet.

More Storage = More Value

In Greystar’s 2024 Design Survey, 88% of renters said they want more closet space—making it one of the top amenities driving leasing decisions across all regions and asset classes.

That stat isn’t just about personal preference. It reflects a growing need as renters downsize, consolidate, and seek better organization in their homes. And properties that deliver on this are seeing tangible results—faster lease-ups, higher retention, and even increases in asset value.

Why? Because closet space isn’t just an amenity—it’s functionality. And functionality drives satisfaction. And satisfaction drives NOI.

Logic Closet by Spatia Designs

Closet Design as a Value-Add Strategy

When closet systems are thoughtfully designed—and flexible enough to meet real resident needs—they do more than store belongings. They:

•Reduce turnover by improving day-to-day livability

•Support higher rents by creating perceived (and actual) value

•Boost property value through low-cost, high-impact upgrades

Appraisers take functionality and design into account. So while a walk-in closet may not be its own line item, a modern, well-organized unit stands out in comps—especially when prospective renters are willing to pay more to live there.

Logic Closet by Spatia Designs

The Spatia Designs Difference

At Spatia, we help developers turn this insight into action.

Our adjustable closet systems give you a simple, scalable way to enhance livability without breaking budget. You don’t need to redesign floorplans—you just need to rethink the value of the space you already have.

In Closing

When evaluating your next investment or renovation project, consider this:

✅ Pools and gyms get attention.

✅ Closet space wins renewals.

✅ And small, smart upgrades inside the unit can have a major impact on your bottom line.

 

If this was helpful, you’ll love our newsletter. Subscribe for monthly strategies to grow your NOI and streamline operations. Click Here to Sign Up!

/0 Comments/by

TSMC’s $165B Investment in Phoenix: A Goldmine for Multifamily Developers

,

The largest foreign direct investment in U.S. history is happening in Phoenix.

Taiwan Semiconductor Manufacturing Company (TSMC) is committing $165 billion to build three cutting-edge semiconductor fabrication plants, two advanced packaging facilities, and a sprawling R&D center.

Beyond the 40,000+ construction jobs and tens of thousands of permanent high-paying positions, this investment will transform the local economy—and supercharge demand for housing.

For multifamily developers, investors, and property managers, this presents an unparalleled opportunity. The influx of workers and businesses into Phoenix means the competition for well-located, well-designed apartments is about to heat up.

 

Why This Investment is a Game-Changer for Multifamily

The semiconductor boom isn’t just about factories—it’s about entire ecosystems of suppliers, service providers, and support industries setting up shop nearby. That means thousands of professionals, from engineers to technicians, relocating to the area and needing housing.

Here’s why multifamily developers should be paying attention:

 

Phoenix’s Housing Market is Already Tight

Despite a wave of new apartment deliveries, vacancy rates in Phoenix remain below national averages in many submarkets. According to recent data from RealPage Analytics, Phoenix has absorbed new supply well, and rents have remained resilient even with new developments coming online.

TSMC’s expansion will only add to demand in a market that has already been one of the country’s fastest-growing metros for years.

 

Class A, B, and Workforce Housing Will Be in High Demand

While many of TSMC’s employees will be engineers, scientists, and corporate professionals, the ripple effect will bring in thousands of skilled laborers, support staff, and suppliers. This means that luxury, mid-tier, and workforce housing will all see increased demand—not just high-end apartments.

Developers who balance affordability with design and functionality will have the biggest advantage.

 

New Developments Are Already Rising Near TSMC

It’s no secret that developers are watching this semiconductor investment closely. One of the biggest projects in the pipeline is Halo Vista, a $7 billion mixed-use development near TSMC’s manufacturing complex.

This 30 million-square-foot “city within a city” will feature residential units, hotels, retail, and even educational facilities, designed specifically to accommodate the thousands of workers relocating to the area.

But Halo Vista won’t be the last. Expect to see master-planned communities, high-density multifamily developments, and mixed-use projects spring up all around North Phoenix.

 

Residents Will Have Options—Make Your Property Stand Out

With so much new supply coming online, property managers and developers need to think strategically about how to attract and retain residents.

High-end amenity spaces are great, but the real value lies in making the actual units more livable.

That means better storage solutions, thoughtfully designed interiors, and small upgrades that make a big impact on daily life.

 

How Spatia Designs Helps Developers Maximize NOI in This Boom

At Spatia Designs, we understand that multifamily developments aren’t just about filling units—they’re about long-term retention and maximizing NOI.

A Logic Closet by Spatia Designs

Our custom, durable closet systems are an affordable but high-impact upgrade that:

✔️ Boost leasing appeal—Residents are looking for storage solutions that make daily life easier. Walk-in closets are among the top 5 most desired amenities according to Greystar’s 2024 Design Survey.

✔️ Reduce maintenance and turnover time—Our stronger, more adaptable systems mean fewer broken shelves, faster turns, and less downtime between leases.

✔️ Increase property value—Small unit upgrades like storage solutions can add $1,000+ per unit in NOI, making them an easy way to justify rent premiums.

With Phoenix’s multifamily market set to explode, developers and investors who invest in the right details now will be the ones who thrive in the long run.

 

Are Your Properties Ready for the Coming Boom?

If you’re developing near TSMC—or anywhere in Phoenix—you can’t afford to overlook the small design choices that lead to big NOI growth.

 

Subscribe to our Newsletter to stay up to date with industry insights! If you sign up today you can get up to 40% off your first purchase! Click Here To Subscribe!

/by

Apple’s $500 Billion Investment is a Green Light for Multifamily Growth

,

Apple’s Historic Investment Set to Drive Housing Demand & Spur Multifamily Development Nationwide

 

Apple’s massive $500 billion investment into U.S. infrastructure and manufacturing isn’t just a tech industry headline—it’s a game-changer for real estate developers, multifamily operators, and property managers.

With new factories, research centers, and training hubs popping up across the country, thousands of jobs will follow. And where there are new jobs, there’s new housing demand—which means new apartment construction and repositioning opportunities for developers.

 

What This Means for Multifamily Development

Apple’s investment will be a catalyst for rapid housing growth near its planned development sites, including its new Houston manufacturing facility, Michigan training academy, and expanding research centers.

This surge in demand will impact both new construction and existing apartment communities, creating opportunities for developers and operators to:

 

✅ Build New Multifamily Properties – With thousands of high-paying jobs being created, housing demand will increase in surrounding areas, requiring new developments.

✅ Upgrade Existing Properties – In competitive rental markets, apartment operators will need to differentiate their communities with modernized interiors, enhanced storage solutions, and resident-focused amenities.

✅ Focus on Resident Experience & Retention – As more jobs drive rental demand, attracting and keeping residents with smart unit upgrades and functional living spaces will become a key NOI driver.

 

Spatia Designs: Helping Properties Stay Competitive

Luxe closet

In markets where new development is inevitable, existing properties must compete with brand-new builds. One of the simplest ways to increase resident satisfaction and boost rent potential? Closet upgrades.

🚀 88% of renters in Greystar’s 2024 Design Survey said they prioritize walk-in closets, proving that smart storage solutions aren’t just a “nice to have”—they’re a leasing advantage.

Spatia Designs’ closet systems help properties stay competitive by offering:

 

✔ High-end storage solutions at a fraction of the cost

✔ Stronger, more durable shelving that outperforms wire racks

✔ Easy-to-install systems that reduce downtime at unit turns

 

The Bottom Line

Apple’s investment is about more than just tech innovation—it’s creating hotbeds for real estate growth. Multifamily developers and operators near these expansion zones should be proactive in positioning their properties for success.

Because when thousands of high-income professionals flood a market, the properties that stand out will be the ones that win.

If you’re preparing your portfolio for growth, let’s talk about how smart upgrades—like functional closet systems that residents actually want—can be a low-cost, high-value NOI booster.

 

Stay ahead of the trends shaping multifamily development. Sign up for our newsletter to get exclusive insights, market updates, and smart strategies to maximize NOI. Join us today and receive 40% off your first order!

/by

Beyond Rent Hikes: How Small Upgrades Unlock NOI Growth

, ,

Small But Mighty… And Cost Effective

 

When property owners think about boosting Net Operating Income (NOI), the first instinct is often raising rents. While rent increases can certainly drive revenue, they aren’t always the best or most sustainable option—especially in today’s market, where renters are more selective and value-driven than ever.

But what if there was a way to increase NOI without increasing rent?

Small, strategic upgrades to apartment interiors can drive higher retention, justify premium pricing, and improve operational efficiency—all without the risk of pricing out potential residents.

The Hidden ROI of Small Upgrades

Residents don’t just sign leases based on flashy amenities—they sign (and renew) based on how functional, comfortable, and livable their space is. According to the 2024 Greystar Design Survey:

📊 88% of renters say a walk-in closet is a must-have.

📊 63% of renters would pay more for improved storage solutions. $50-$75 More per month!

📊 Well-designed interiors can increase renewal rates by up to 10% (J Turner Research).

The connection is simple: Residents who love their living space are more likely to stay.

Every move-out costs an owner $4,000 on average between marketing, make-ready costs, vacancy loss, and staff time. Even a 1% increase in retention can add thousands to NOI annually—far more than a rent hike alone.

What Kind of Upgrades Actually Move the Needle?

Not all upgrades are created equal. The key is investing in enhancements that improve daily life while keeping costs manageable.

 

Logic Closet By Spatia Designs

Here are some high-impact, low-cost upgrades that drive NOI growth:

✔ Closet Systems That Maximize Space – Walk-in and reach-in closets are top resident priorities, and a well-designed storage system can add real value to any unit and your property as a whole.

✔ Modern Lighting Fixtures – Upgrading from outdated fixtures to LED lighting improves energy efficiency and creates a more premium aesthetic.

✔ Smart Thermostats & Keyless Entry – While smart tech isn’t for everyone, practical tools like thermostats that save on energy costs or keyless entry for seamless access are widely valued.

✔ Bathroom & Kitchen Fixtures – Swapping out old faucets and cabinet hardware for modern alternatives instantly elevates a unit without major renovations.

The NOI Equation: Small Changes, Big Returns

Instead of focusing only on rent hikes, multifamily owners should ask:

💡 How can I increase NOI by enhancing what residents already use every day?

🔹 1% retention increase = $250,000 annual savings on a 1,000-unit portfolio.

🔹 Faster lease-ups = Less downtime and fewer costly vacancies.

🔹 Lower maintenance costs = Upgrading durable, functional features leads to fewer work orders and reduced staff workload.

Small upgrades create real, measurable NOI improvements—and unlike rent hikes, they benefit both residents and owners.

Invest in the Details, Reap the Rewards

In a market where supply is rising and renters have more choices, the competitive edge goes to properties that prioritize livability and long-term value.

A small investment in practical, high-impact upgrades can pay off far more than simply raising rent—in higher retention, reduced turnover costs, and stronger NOI growth.

Ready to upgrade your closets? Get 40% off your first order—exclusively for our newsletter subscribers. [Click here to claim your discount!]

/by

How Declining Interest Rates Impact the Multi-Family Industry

, ,

How Declining Interest Rates Impact the Multi-Family Industry

As interest rates start to come down, the multi-family housing industry is poised to experience a variety of shifts. Lower rates affect everything from property financing to tenant dynamics, making this change especially relevant for property developers, owners, and managers alike. Here’s a closer look at what decreasing interest rates could mean for the multi-family sector.

1. Easier Access to Financing and Development

One of the biggest advantages of lower interest rates is reduced borrowing costs. When financing is more affordable, developers can take on new multi-family projects with less financial strain. This means we might see a wave of new developments, from luxury apartments to affordable housing complexes, as lower rates make construction loans more appealing.

In addition, current property owners looking to upgrade or expand their existing units can now more easily access financing, which can be a boost to property values and the appeal of multi-family developments.

2. Increased Investor Interest

Multi-family properties are often viewed as stable, recession-resistant investments, and lower interest rates only enhance that appeal. With borrowing costs down, the yield on multi-family properties becomes even more attractive compared to other investments, like stocks or single-family homes. This can lead to increased competition among investors and potentially drive property values up in desirable markets.

3. Potential for Rent Stabilization

As more multi-family projects enter the market due to lower borrowing costs, we could see increased competition among property owners. A higher supply of units typically stabilizes or even lowers rents in certain areas, providing relief for tenants. However, this effect might be limited to areas with significant new development, while markets with high demand and limited supply might still experience rent increases.

4. Opportunity for Property Upgrades and Renovations

Existing multi-family properties stand to benefit from lower rates through refinancing. Many property owners may choose to refinance their loans, freeing up capital that can be reinvested in property improvements, energy efficiency upgrades, or the addition of popular amenities. This reinvestment not only increases tenant satisfaction and retention but can also drive higher rents, adding long-term value to the property.

5. Impact on Tenant Dynamics

Lower interest rates could make homeownership more accessible for some tenants, prompting higher turnover in multi-family properties as renters move into homes of their own. While this trend could create challenges for property managers, it also presents an opportunity to target new tenants, particularly those who value flexibility, amenities, and community over homeownership.

Final Thoughts

The decrease in interest rates creates a mix of opportunities and challenges for the multi-family housing industry. Developers, property owners, and managers alike can benefit from lower financing costs and increased investment, but they’ll also need to navigate potential shifts in tenant behavior and rental competition. In the end, staying adaptable to these changes will be key to maximizing the benefits of a lower interest rate environment in multi-family housing.

/by

Sustainability Meets Multifamily

, , ,

Embracing Sustainability in Multi-Family Housing: A Path to Long-Term Value

As environmental awareness continues to grow, sustainability in multi-family housing has become more than just a trend—it’s a necessity. Sustainable practices not only reduce the environmental impact of developments but also add significant value to properties, enhancing tenant satisfaction and reducing operational costs. Here are some key areas where sustainability makes an impact in multi-family housing:

1. Energy Efficiency

Energy-efficient upgrades, such as LED lighting, energy-efficient HVAC systems, and smart thermostats, can significantly lower utility costs while reducing a property’s carbon footprint. Tenants are increasingly looking for eco-friendly buildings, so energy efficiency can be a powerful draw for new residents.

2. Water Conservation

Water-saving fixtures, low-flow toilets, and efficient irrigation systems contribute to substantial water savings. In areas facing water scarcity, these upgrades are essential for both the environment and tenant satisfaction.

3. Sustainable Materials

Using eco-friendly building materials, like recycled or sustainably-sourced wood, reduces the environmental impact of construction. Durable materials also lower maintenance costs and extend the life of a property, further enhancing its value.

4. Waste Reduction and Recycling

Waste reduction programs and accessible recycling facilities are essential for eco-conscious tenants. Implementing these practices can improve a building’s appeal and reduce landfill waste, contributing to a healthier environment.

Final Thoughts

Sustainability in multi-family housing is more than a green initiative—it’s a smart business strategy. By embracing sustainable practices, property managers and developers can reduce costs, attract environmentally-conscious tenants, and make a positive impact.

/by

Maximizing NOI in Multifamily

, ,

Maximizing NOI in Multi-Family Housing: Key Strategies for Success

In the multi-family housing industry, Net Operating Income (NOI) is a critical measure of a property’s profitability. NOI represents the difference between total income and operating expenses, excluding taxes, mortgage payments, and capital expenditures. For property managers and developers, increasing NOI is essential for enhancing property value and attracting investment. Here are some effective strategies to boost NOI in multi-family housing:

1. Optimize Rent Pricing

Regularly reviewing rent rates in your area can help ensure your units are competitively priced while maximizing revenue. Implementing lease renewal incentives or gradually raising rents can help optimize income without causing tenant turnover.

2. Reduce Operating Expenses

From energy-efficient lighting and appliances to routine maintenance strategies, minimizing operating expenses is key to increasing NOI. Consider upgrading fixtures, utilizing smart thermostats, or implementing preventative maintenance to save on costly repairs and utility expenses.

3. Improve Tenant Retention

High tenant turnover directly impacts NOI due to the costs associated with unit turnover, marketing, and vacancy periods. Providing excellent customer service, maintaining updated amenities, and addressing tenant concerns promptly can greatly improve retention rates.

4. Invest in Smart Storage Solutions

Innovative storage solutions, such as customizable closet systems, not only reduce maintenance costs over time but also increase tenant satisfaction, as tenants value functional and organized spaces. Durable, low-maintenance closet systems can attract tenants and keep them longer, reducing turnover expenses.

Final Thoughts

NOI isn’t just a metric; it’s a roadmap for success in multi-family property management. By focusing on effective strategies to increase revenue and reduce costs, multi-family properties can significantly improve profitability and create long-term value.

/by