Part of what makes marketing so interesting are the ever changing targeting tactics and approaches to understanding your audience. A number of our property development clients have entrusted the Red Egg team to perfect an approach to real estate marketing for millennials. They are taking over more and more of the real estate buying market share, especially when it comes to commercial development.
We’re observing a high demand for multi-family properties, with mixed use perks and eco-friendly considerations. Here are a few steps you can take to improve millennial targeting in your real estate development marketing strategy.
Making a Commercial Space Feel Like a Single-Family Home
Millennials are choosing to live in rental apartments for much longer than older generations; foregoing homeownership until finances will allow for a permanent residence. In fact, according to a 2019 study, over 12% of millennials plan to “always rent.”
While the reason behind this generational switch has a lot to do with finances, it doesn’t mean millennials won’t shell out their money for an up-scale property that meets their needs. Younger adults are willing to spend about 45% of their income during their first decade in the workforce.
This means that it’s important to market the qualities of your commercial property that make people feel at home. Things like a pool, yards, balcony space, new appliances, and a neutral aesthetic make it easy for renters feel at home.
Given that younger renters are spending a decent amount of their income on rent, it makes sense that they’d prioritize properties walking distance to local groceries, gyms and shops.
Mixed-use facilities make it easy for young people to entertain, shop, eat, and sleep all within a few blocks. Some properties are even implementing a space for remote workers to set up shop with small, on-site coworking spaces.
The more of these things you can take into consideration during the development stage, the better. Marketing these amenities will set your property apart from the competition and draw in long-term renters.
Technology and Eco-friendly Living
Millennials prioritize the convenience of technology and appreciate an opportunity to be eco-conscious. That said, commercial real estate developers should be sure to strategize how these services are being offered.
For example, bundling a cable TV subscription into the cost of rent would actually be a deterrent for most young people. In the age of streaming, more than half of millennials use streaming services as their main way of watching TV, so offering a technological service that’s wholly unappealing to a younger demographic would actually be a deterrent to millennial renters. Make sure you understand your target demographic and their priorities before blindly marketing your amenities.
Additionally, millennials like to see how brands are using their facilities for environmental good. Recycling, solar power, gardens, and green spaces for recreation are all fantastic things to market if you’re looking to attract a younger demographic.
Marketing for the Future
The economy, personal debt, and income brackets of younger generations are the most prevalent reasons for the high percentage of renters. Meaning, these trends are likely to continue over time.
Perfecting your millennial marketing message now will not only improve your rental rates, but also set your brand up for continued growth.