Adding Value to Properties to Maximize Revenue

1 - Presented by Parks Associates1 - Presented by Parks Associates

Dell Presentation June 4, 2004

Presented by

Technology Amenities in theMultifamily Market

Adding Value to Maximize Revenue

Bill AblondiDirector, Home Systems Research

April 27, 2009

3 - Presented by Parks Associates

• Broadband Services Help Sell/Rent Units Faster – And you know that …

but I hope to add to what you already know

• Never too Easy, Never too much Content, … Never too

Fast– Consumer appetite for Rich Media Content will drive a

continuing Need for Speed

• Applications Building on Broadband Access– Remote Monitoring & Control

– Energy Management

Three Points


First …What You and Your Peers Told Us


Nearly Half of MFEs are Offering or Looking for Technology Products/Services


"What is your firm's attitude about offering NEW TECHNOLOGY AMENITIES in the MULTIFAMILY RESIDENCES it builds, owns or manages?"

n = 506

7%

11%

13%

18%

43%

We are adding amenities (home theater andwiring for offices) to help with sale or rental

We are cautious about offering new productsand/or services

We build and/or manage basic residential units

Offering new products and/or capabilities isnot a priority for us

We typically look for new products and/orservices

% ALL MFEsSource: Survey of Multifamily Executives - 3Q2008© 2008 Parks Associates

Select the One StatementThat Best Applies


28%

34%

37%

40%

71%

Customized unit interiors

High-end fixtures and finishes

Community Pool

Community Fitness room

In-unit laundry

% of MFEs Rating Positive Influence 6 or 7 1 = Least Likely; 7 = Most Likely

n = 487Source: Survey of Multifamily Executives - 3Q2008© 2008 Parks Associates

Amenities Most Likely to Positively Influence theSale or Rental of a Unit

?

?

?


?

?


28%

29%

29%

31%

34%

35%

37%

40%

44%

71%

Customized unit interiors

In-unit Security system

Phone + Internet + Video bundle

Common area Wi-Fi Internet access

High-end fixtures and finishes

In-unit Wi-Fi Internet access

Community Pool

Community Fitness room

In-unit, wired Broadband Internet

In-unit laundry



Amenities Most Likely to Positively Influence theSale or Rental of a Unit



OTHER Amenities Most Likely to Positively Influence the Sale or Rental of a Unit


9%

19%

22%

23%

71%

Online conciergeservices

In-unit energymanagement systems

Electronic doorlocks/access control

Premium Videoservices

In-unit laundry




• The multifamily industry is seeking new technology amenities to attract residents

• In-unit Broadband helps sell/rent units faster

• Some MFEs are offering new services to differentiate their units

The Bottom Line



Premium Online Video

Monthly Users of Premium Internet Video

(U.S. Adult Home Broadband Users)

15.1

2.20.745

26.6

3.8

1.30.465 0.816

0

10

20

30

Watch TVShows (#M)

Pay for TVShow

Downloads(#M)

Rent Movies(#M)

DownloadMovies (#M)

Nu

mb

er

of

U.S

. Ad

ult

s (

#M

)

20072008

Source : Home Networks for Consumer Electronics© 2009 Parks Associates:

Significant Growth of the Internet for “Catch-up TV”

Online Video Moving to Connected CE Devices

Premium Online Video Streams/Downloads:

PC/PMP* and Connected CE

0

500

1,000

1,500

2,000

2,500

2009 2010 2011 2012 2013

Millions of Titles

Video Consumed at PC/PMP*(#M)Video Consumed at ConnectedCE Devices (#M)

Source : Digital Lifestyles: 2009 Outlook© 2009 Parks Associates

* Portable Media Player

Applications Building on Broadband Access


Remote Monitoring & Control – Example from SureWest & Xanboo



Consumer Adoption of Remote Self-monitoring Systems & Services is Projected to Grow

Self-monitoring Households and Penetration

1.01.3

1.9

2.5

3.4

4.5

5.8

7.3

6.1%

4.9%

3.8%

3.0%

2.2%1.7%

1.2%0.9%

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

2005 2006 2007 2008 2009 2010 2011 2012

Mill

ion

Ho

us

eh

old

s

0%

5%

10%

15%

Pe

rce

nta

ge

Pe

ne

tra

tio

n

Total Self Monitored HHs (#M)

% All HHs

© 2008 Parks Associates



• Consumers are growing more conscious of their energy consumption (based on Parks Associates Consumer Research)– Installing programmable thermostats; setting them to conserve energy

– Installing energy efficient light bulbs

– Over half of household report taking additional energy-savings measures

• Utilities are taking steps to deploy Advance Metering Infrastructures (AMI)

– Over 1 million smart meters deployed in U.S. at end of 2008

– Announced plans to install 25 million to 30 million over next 3 to 5 years

• Numerous companies are establishing positions to take advantage of Smart Grid opportunities – Large appliance, HVAC and meter manufacturers as well as start-ups

– Venture capitalists are actively investing in the sector

Residential Energy Management:Some Points to Make



Energy Management Systems − Offered by < 30% of MFEs … Could become a Differentiator

Energy/Utility Management Systems "What types of energy/utility management systems does your firm offer in the units it builds, owns or manages? We offer systems that allow residents to..."

n = 89

18%

9%6%

40%

34%

26% 25%

Monitor andcontrol

temperature intheir unitsremotely

None of theabove

Monitor andcontrol energyusage online

Takeadvantage oftime-of-dayutility billing

Control lightsremotely

Controlappliances

remotely

Other

% of MFEs Offering Energy Management

Systems

Source: Survey of Multifamily Executives - 3Q2008© 2008 Parks Associates

< 30% of MFEs OfferEnergy Management SystemsOf Those That Do


• Fastest Available Broadband Access will become increasingly attractive to residents

• Remote Self-Monitoring and Control of in-unit systems appears poised to the NEXT service riding on BB

• In-unit Energy Management could become attractive to residents and help sell/rent units in near future

Takeaways

17 - Presented by Parks Associates17 - Presented by Parks Associates

Contact Information

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www.parksassociates.com