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
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First …What You and Your Peers Told Us
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Nearly Half of MFEs are Offering or Looking for Technology Products/Services
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"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
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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
?
?
?
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?
?
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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
% 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
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OTHER Amenities Most Likely to Positively Influence the Sale or Rental of a Unit
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9%
19%
22%
23%
71%
Online conciergeservices
In-unit energymanagement systems
Electronic doorlocks/access control
Premium Videoservices
In-unit laundry
% of MFEs Rating Positive Influence 6 or 7 1 = Least Likely; 7 = Most Likely
n = 342Source: Survey of Multifamily Executives - 3Q2008© 2008 Parks Associates
9 - Presented by Parks Associates
• 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
9 - Presented by Parks Associates
10 - Presented by Parks Associates
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
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Remote Monitoring & Control – Example from SureWest & Xanboo
12 - Presented by Parks Associates
13 - Presented by Parks Associates
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
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• 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
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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
16 - Presented by Parks Associates
• 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
www.parksassociates.com