New Target Customer … How Deep is This Market?
Developer targeting a new customer … Fort Lauderdale:
Recently in doing some market research and due-diligence in Fort Lauderdale for a new development site, I had the pleasure of visiting Amaray Las Olas in downtown Fort Lauderdale. The property was just finishing a nine-month lease up. Surprisingly, this asset had market rents that were $.50 per square foot higher than its comps and the average unit square footage was at least 10% higher. In interviewing the manager we discovered that the average age of the resident was 41 years old. I asked … who is the primary customer? The manager’s stated that a large number were prior single family home owners that want an urban life style.
My primary observations are the following: This is a true “AAA” luxury building, great location, larger units, plenty of parking, and top of the food chain with its current rents. The developer was ahead of the curve in targeting the downsizing Baby Boomer. Cushman Wakefield is currently marketing this investment asset.
So many developers over the past five years have been chasing the Millennial as the target customer. Millennial demand yet, has not been totally been realized. (*See the blog link below). I would think that there is a significant opportunity in the emerging demographic cohort of the downsizing Baby Boomer.