Balancing Act: Carefully Assessing Supply and Demand (Sponsored Content)

In the dynamic landscape of economic development, housing plays a pivotal role in shaping the vitality of a community. A thriving business environment requires at its foundation an array of available housing at all levels of the economic spectrum to support a growing workforce and customer base. Chief Executive Officer of Bryan Properties, Brad Gebhard has a unique perspective on how strategic housing initiatives can drive economic growth while meeting the diverse needs of residents.

“Amidst evolving economic conditions, it’s important that we engage in cautious expansion and that we remain responsive to the marketplace,” Gebhard explains. “Bryan Properties is committed to strategic growth, prioritizing areas with a demonstrated demand and carefully assessing market saturation to avoid oversupply.”

Gebhard explains when a community reaches nearly full employment at a time of high inflation and high interest rates, “people may back off on going to dinner or they may not patronize the shopping center, but they do need a place to live. And at full employment, obviously people are able to sustain housing of all types. As economic conditions shift, the rest will follow.”

“We have to provide housing solutions that align with changing consumer needs and preferences,” Gehard says. “Student housing, multifamily rentals and hospitality accommodations are all key areas of emphasis for us with a construction pipeline heavily weighted towards student and multifamily housing.”

Student Housing
Closely monitoring college student enrollments has proven to be a key indicator of current student housing needs as well as a predictor of future housing needs as local companies seek to recruit and retain recent graduates in the local workforce. For instance, Bear Village, a key asset of the Bryan Properties portfolio, consists of 665 units on one city block.

“Our wheelhouse consists primarily of sophomores and juniors,” Gebhard explains.  “We need a good year to get to that second year where our customers are going to come from. At Bear Village we were sold out this last school year and are already completely sold out for the next.”

Multifamily Rentals
Springfield has outperformed other parts of the state in terms of strong demand and high occupancies for conventional multifamily rentals. Furthermore, a high rate of inflation and interest has significantly slowed subdivision growth and created a shortage of single-family residences for sale and a particular void in starter homes, resulting in a favorable environment for rental space.

Consistent with this trend, Bryan Properties reports a robust set of deliveries with over 200 apartment units last year and another 400 apartment units expected to open this year in Springfield and in surrounding sub-markets.

Hospitality Accommodations
A community’s hospitality development requires the same attention to consumer needs and preferences as any form of housing development. Market responsiveness dictates that we develop with an awareness of preferred hospitality brands, locations that overnight visitors most want access to and the types of amenities consumers have come to expect.

“In hospitality, we’re big on the branding, doing business with Hilton and Marriott,” Gebhard explains. “We look at how many of these brands are in town and where they are located? Is there a logistical advantage for us putting a Hilton downtown versus putting it south or north? We found there wasn’t a single Hilton asset in downtown Springfield until we came in with Tru and we’ve capitalized on that opportunity, knowing the demand is there.”

Simply stated, as Springfield’s economic landscape evolves, Bryan Properties will remain focused on strategic housing initiatives that demonstrate adaptability and foresight in crafting communities that resonate with local consumers.

This content is brought to you by Bryan Properties.