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Rent remains high, but more properties offer incentives

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New construction surge prompts landlords and property managers to provide more perks

SEATTLE /PRNewswire/ — Rental concessions—offers meant to entice tenants, such as free months of rent or free parking—are at their highest level in more than two years despite strong renter demand, Zillow’s latest data shows. That’s because property managers are now likely competing for tenants, as new, primarily upscale buildings from the recent construction boom enter the rental market.

About 30% of rental listings on Zillow advertised concessions in October, a surge that signifies a notable shift in the rental market. Within the past five years, concessions reached a peak in February 2021, with 36.7% of rentals offering incentives, coinciding with low renter demand during the pandemic. Those concessions then dropped as far as 19.4% in July 2022. However, the current rise comes as typical rent prices are nearly 30% higher than pre-pandemic levels, and annual rent growth just ticked back up after nearly two years of slowing down.

“The pandemic era’s increase in concessions was a direct response to decreased renter demand. Currently, we’re witnessing a different scenario where the demand for rental housing is high, but there’s been a notable rise in supply,” said Anushna Prakash, an economic research data scientist at Zillow. “To differentiate themselves from newer, potentially more amenity-rich apartment buildings, property managers are stepping up their game, offering more incentives to attract potential renters with a broader range of choices.”

Nationwide increase in concessions
Zillow data shows an astonishing 43 of the nation’s largest 50 metropolitan areas have seen a rise in rental concessions compared to last year. The most deal sweeteners are found in Salt Lake City, Utah, and San Jose, California, where more than half the rentals listed on Zillow in October advertised concessions.

Construction boom and its effects
This trend is especially pronounced in metro areas experiencing a construction boom. According to Fannie Mae’s Mid-2023 Multifamily Construction Update, markets such as Washington, D.C., Dallas and Austin are seeing more new developments, with Dallas and Austin having 74,000 and 66,000 new units, respectively, either recently completed or underway .

Zillow’s data reveals a similar upswing in concessions in those metros and others, including Phoenix and Atlanta, which are also among the top markets for new multifamily construction. This correlation highlights how the influx of new apartments is likely prompting housing providers to offer incentives to attract renters.

10 Metro Areas with the Largest Share of Rental Concessions

MetroShare of Rentals
w/Concessions
Year over Year
(YoY) Change in
Share of
Concessions
Typical Rent in
Zillow Observed
Rent Index (ZORI)
YoY Change in
ZORI
Salt Lake City, UT54.4 %26.5 %$1,6770.7 %
San Jose, CA50.8 %6.3 %$3,2600.2 %
Washington, DC49.6 %-1.2 %$2,3083.9 %
Charlotte, NC47.6 %20.5 %$1,8262.4 %
Minneapolis, MN46.8 %3.4 %$1,6472.7 %
Dallas, TX45.9 %17.4 %$1,8030.6 %
Phoenix, AZ45.1 %10.1 %$1,9020.6 %
Austin, TX44.8 %13.4 %$1,813-2.8 %
Nashville, TN43.8 %8.1 %$1,8960.9 %
Atlanta, GA43.5 %15.2 %$1,9250.4 %

Source: Zillow data

Diverse concession strategies across metros
Conversely, metro areas such as New Orleans (9%), Providence (14%), Miami (14%) and New York (15%) observed the lowest concession rates in October. This varied landscape suggests that property managers across the country are exploring different strategies as they gauge the effectiveness of concessions before potentially adjusting rental prices.

Zillow’s research, echoing the sentiments of economists and housing experts, highlights the fact that new construction and zoning reform are pivotal in enhancing housing affordability. The current trend in concessions, likely fueled by the spike in multifamily construction, is an interesting twist in the quest for affordability. It remains to be seen if the rise in concessions will translate to a significant drop in rent growth.

Zillow provides a clear and user-friendly platform for both housing providers and renters. Property managers can easily list concessions for their properties, while renters can find all available offers under the “Special Offers” tab on participating building detail pages, enabling them to make well-informed housing decisions.

About Zillow Group
Zillow Group, Inc. (NASDAQ: Z and ZG) is reimagining real estate to make home a reality for more and more people. As the most visited real estate website in the United States, Zillow and its affiliates help people find and get the home they want by connecting them with digital solutions, great partners, and easier buying, selling, financing and renting experiences.

Zillow Group’s affiliates, subsidiaries and brands include Zillow®; Zillow Premier Agent®; Zillow Home Loans℠; Trulia®; Out East®; StreetEasy®; HotPads®; ShowingTime+℠; and Spruce®.

All marks herein are owned by MFTB Holdco, Inc., a Zillow affiliate. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org). © 2023 MFTB Holdco, Inc., a Zillow affiliate.

(ZFIN)

SOURCE Zillow

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PickleRage Serves Up Franchise Opportunities for Entrepreneurs Looking to Get in On the Pickleball Craze

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MIAMI BEACH, Fla., Feb. 7, 2024 /PRNewswire/ — PickleRage, a premier indoor pickleball club, is thrilled to announce it is now offering franchise opportunities. Pickleball’s unprecedented popularity is the driving force behind the club’s expansion, offering entrepreneurs the chance to grow a business around the #1 fastest-growing sport in America.

PickleRage, A Premier Indoor Pickleball Club, is Now Offering Franchise Opportunities Nationwide.

PickleRage stands out as a unique franchise opportunity, backed by a seasoned leadership team of commercial real estate, operations, marketing, and franchising professionals. This group of experts has removed the guesswork associated with finding exceptional, transformable commercial spaces, with the goal of ensuring that franchisees can deliver the ultimate pickleball experience to players of all ages.

“Our leadership team brings a wealth of experience in real estate, operations, marketing, legal, and more to the table—or should we say, to the court?” commented Brad Smith, VP of Franchising at PickleRage. “We’re excited to invite qualified franchisees to join us in growing the PickleRage brand and capitalizing on the tremendous market potential of indoor pickleball.”

The PickeRage family entertainment franchise model includes real estate support, launch support, operational support, technology, comprehensive operating manuals, and marketing support to ensure franchisees have the tools they need to be successful in the growing pickleball market.

The franchise offers a range of investment options, from single-unit opportunities to multi-location ventures. Entrepreneurs can even explore the possibility of converting existing tennis clubs or other athletic facilities into thriving PickleRage establishments.

“We are actively accepting applications from investors, experienced franchise and business owners, and other qualified investor-entrepreneurs who are passionate about fostering active, healthy communities,” said Smith.

As a franchise owner, individuals will have direct access to PickleRage’s team of experts, each boasting decades of industry experience. New franchisees will also receive comprehensive training, cutting-edge software, detailed manuals, and ongoing support from launch to profit maximization. If you are interested in a franchise opportunity, please visit: www.pickleragefranchise.com

PickleRage is one of America’s fastest growing indoor pickleball clubs that gives novice & advanced players alike a place to play and connect. With world-class social, tournament, and instructional programing, you can see why pickleball players across the US are calling PickleRage clubs “Pickle-rageous!”  And with more than 500 locations planned over the next 5 years, PickleRage is set to take the pickleball-world by storm. For more information, visit: www.picklerage.com.

SOURCE PickleRage

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DREW BREES JOINS THE PICKLR AS AMBASSADOR AND FRANCHISE INVESTOR

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KAYSVILLE, Utah, Jan. 31, 2024 /PRNewswire/ — The Picklr, North America’s fastest-growing indoor pickleball facility, announces that 20-year NFL veteran and famed New Orleans Saints quarterback Drew Brees has joined The Picklr as an ambassador, investor, and franchise owner. The 2009 Super Bowl Champion combines his passion for pickleball and community development by adding The Picklr to his portfolio of businesses, which already includes ownership in various multi-unit franchises.


As a national brand ambassador, Drew Brees will work closely with The Picklr to promote the brand and its mission to provide state-of-the-art sports facilities for athletes of all ages and skill levels. In addition, Drew will also become an owner of several facilities and act as the Area Developer of thirty Picklr franchises throughout Indiana, Ohio, and Michigan. An inductee of Purdue’s Intercollegiate Athletics Hall of Fame, Brees will open his first flagship Picklr location in Indianapolis in 2024.

“My mission in business and franchising is to work with top-tier organizations and people to create a best-in-class culture and provide exceptional experiences. I saw that immediately with The Picklr,” said Drew Brees. “We have created a community and environment where everyone can build relationships, compete, develop skills, and have fun while promoting a healthy and active lifestyle through one of the most popular sports in the world. Pickleball is for everyone, and there is no better place to be than The Picklr.”

“Everyone recognizes Drew’s prowess on the football field, but many may not realize that he has built franchising expertise for over a decade,” said Scott Schubiger, Chief Growth Officer of The Picklr. “Getting to know Drew over the last few months has made it abundantly clear that our collective passion and vision for the sport of pickleball are perfectly aligned. We are truly honored and could think of no better person than Drew Brees to join The Picklr family as an investor, brand ambassador, and 30-unit, multi-state franchisee.”

LINK FOR MEDIA ASSETS HERE

ABOUT THE PICKLR:
At The Picklr, pickleball is more than just a sport; it’s a lifestyle that fosters community, competition, and fun. With nearly 175 state-of-the-art clubs, professional coaching, and a vibrant atmosphere, The Picklr offers an unparalleled pickleball experience for players of all skill levels. All locations offer professional-grade outdoor surfacing, best-in-class technology, and access to free leagues, tournaments, and clinics. Follow The Picklr on Instagram, X, LinkedIn, Facebook, and TikTok for news on locations and tournaments, or visit https://thepicklr.com/franchise/to learn more about owning a franchise.

SOURCE The Picklr

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CHIPOTLE INTRODUCES NEW BENEFITS TO HELP ATTRACT AND SUPPORT ITS GROWING GEN Z WORKFORCE

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  • The company’s new benefits prioritize financial and mental health
  • For the first time, Chipotle is offering a Student Loan Retirement Match program and access to a special high-tech Visa card that can build credit for all employees
  • Chipotle is looking to hire 19,000 additional employees for its upcoming “burrito season,” the company’s busiest time of year running from March to May

NEWPORT BEACH, Calif., Jan. 24, 2024 /PRNewswire/ — Chipotle Mexican Grill (NYSE: CMG) announced today that it will be providing additional financial wellness and mental well-being support for more than 110,000 employees through a new Employee Assistance Program and enhanced benefits. The company will hire additional employees over the next couple of months to prepare for its busiest period of the year from March to May, which has been famously coined “burrito season.”

Chipotle’s new benefits will enable eligible employees to:

Chipotle will provide additional financial wellness and mental well-being support for more than 110,000 employees through a new Employee Assistance Program and enhanced benefits.

  • Pay off student debt while saving for retirement: Utilizing SoFi’s Student Loan Verification (SLV) service, once an employee becomes eligible for Chipotle’s 401(k) plan match, the company will match up to 4% of an employee’s salary through contributions to their 401(k) if they make eligible student loan payments. The benefit solution, launched in response to Congress’ approval of the Securing a Strong Retirement Act (SECURE 2.0), allows employees who qualify to no longer have to choose between paying off student debt or saving for retirement – they can do both.
  • Build credit through high-tech banking: Chipotle employees will have access to a premium banking experience from Cred.ai featuring a high-tech Visa card that offers security features, faster access to paychecks, and Cred.ai’s “Credit Optimizer,” which helps build and boost credit scores automatically, even for employees who already have good credit.
  • Manage their financial wellness: Chipotle’s partnership with SoFi will also give employees access to the SoFi at Work Dashboard, a leading financial well-being education platform, which includes an assessment of current financial outlook, followed by suggestions and tools to improve.
  • Access mental health resources: Chipotle’s New Employee Assistance Program (EAP), SupportLinc, powered by CuraLinc Healthcare, focuses on mental and emotional well-being. It includes six free sessions with a licensed counselor or mental health coach, as well as access to tools, resources, and community support for legal, financial, and family matters.

More than 73% of Chipotle’s restaurant employees are Gen Z, and these new benefits cater to the challenges they are facing. It has been widely cited that those born in the late 90s through the early 2000s are experiencing notable financial challenges, including racking up credit card debt faster than previous generations* and being nearly twice as likely as the general population to not feel confident managing their money**.

“Empowering our talent is embedded in our company’s culture,” said Ilene Eskenazi, Chief Human Resources Officer, Chipotle. “As we push toward our long-term goal of operating 7,000 restaurants in North America, it’s crucial that we listen to and adapt to the needs of our team members, so they can grow with us.”

Career Mobility at Chipotle
Crew members at Chipotle can advance to a Restaurateur in as little as three and a half years, with a total potential compensation package of approximately $100,000 while leading a multi-million-dollar business. Nearly 90 percent of current restaurant leadership started as crew members and progressed to management positions. In 2023, Chipotle promoted over 26,000 employees.

“Today we have many examples of crew members rising through the ranks and now holding restaurant leadership roles, which are among the proudest accomplishments of this organization,” said Scott Boatwright, Chief Operating Officer, Chipotle. “With 2024’s ‘burrito season’ approaching, there are more career opportunities than ever at Chipotle.” 

World Class Benefits
Chipotle’s new offerings continue to build on the company’s best-in-class employee benefits, including competitive wages: an all-crew bonus program, which allows its restaurant employees the opportunity to earn up to an extra month’s worth of pay each year; access to mental health care and medical, dental and vision insurance; English as a second language for employees and their families; tuition reimbursement and debt-free college degrees; 401(k) with employer match; paid vacation and sick leave; flexible schedules, free meals and more.

Those interested in joining Chipotle on its mission to Cultivate a Better World can apply here: Chipotle Careers.

*SOURCE: Credit Karma
**SOURCE: Intuit Prosperity Index Study – January 2023

About Chipotle
Chipotle Mexican Grill, Inc. (NYSE: CMG) is cultivating a better world by serving responsibly sourced, classically-cooked, real food with wholesome ingredients without artificial colors, flavors or preservatives. Chipotle had over 3,300 restaurants as of September 30, 2023, in the United States, Canada, the United Kingdom, France and Germany and is the only restaurant company of its size that owns and operates all its restaurants in North America and Europe. Chipotle is ranked on the Fortune 500 and is recognized on the 2023 list for Fortune’s Most Admired Companies and Time Magazine’s Most Influential Companies. With over 110,000 employees passionate about providing a great guest experience, Chipotle is a longtime leader and innovator in the food industry. Chipotle is committed to making its food more accessible to everyone while continuing to be a brand with a demonstrated purpose as it leads the way in digital, technology and sustainable business practices. For more information or to place an order online, visit WWW.CHIPOTLE.COM.

SOURCE Chipotle Mexican Grill

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