How Tech, Smaller Spaces Are Changing Multifamily Development

Meeting the needs and desires of San Francisco residents means doing some new and creative things with buildings, said the experts on our mixed-use and multifamily panel at Bisnow's San Francisco State of the Market last week.

Mark Co president Alan Mark said one obvious shift is in parking. Even five years ago, people (whether they owned a car or not), wanted a parking space with their condo for the resale value. Now, with fewer city dwellers wanting cars, there's less demand for parking and Bay Area cities are reviewing their parking requirements. Alan mentioned 388 Fulton, a 69-unit condo project with zero parking. He said residents also are asking for more services, such as a virtual concierge, bike parking or keyless entry.

AGI Avant CEO Eric Tao said a big change on his projects has been the shift to LED lighting, which has come down so much in cost that, even though it's a little more expensive up front, it has a greater ROI over time. He's also exploring new ideas that reflect how people are using their homes, such as a second door from the hallway that can be used for Airbnb rentals (within the regulations, he added). That can increase the value of a property since residents can see the added value of being able to rent out space.

At AGI Avant's 1201 Tennessee, a movable wall with a built-in bookshelf creates a way to quickly reconfigure the space. It's key, he said, to be able to create a perception of more space within the confines of the unit's square footage.

Cameron Falconer, senior managing director for Hines, also seized on space as one of the ways multifamily projects are changing. Units are becoming smaller and more efficient, making it important to utilize every nook and cranny, he said. Then there's the way the communal space becomes an extension of the living quarters, so the building's overall space is used differently.