• Multifamily Focus: Students are back on campus, and housing operators are finding new ways to handle the challenges of renting to them.

• Silo smashing: AI is helping multifamily teams work together by connecting data, cutting energy costs, and improving performance across entire portfolios.

• Sleep over: An interesting new trend in luxury home sales involves letting prospective buyers stay at the property before making an offer.

• Asset reset: Foreclosure drama and conversion hopes collide as Philadelphia’s biggest office complex hits the market.

• Office-to-residential conversion: Webinar on data-driven metrics and insights for profitable office-to-residential conversions. Sign up

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Multifamily Focus

Technology Is Helping Student Housing Operators Handle Their Toughest Season

Multifamily owners are doubling down on renovations as a way to stay competitive in a market saturated with newer, amenity-rich developments. With rental growth slowing in many areas, value-add improvements are seen as essential to maintain tenant interest and justify higher rents. These upgrades go beyond simple cosmetic changes—owners are investing in energy efficiency, smart home features, and revamped community spaces in an effort to attract renters who now expect more than just four walls and a roof.

But these improvements come with tradeoffs, especially for tenants currently living through them. The construction process can disrupt daily routines, and miscommunication or poor planning can quickly erode tenant satisfaction. Property managers are increasingly trying to mitigate this by offering flexible scheduling, communicating clearly about the scope and duration of projects, and even incentivizing tenants to stay during the mess. Still, there’s a fine line between improving a property and alienating the people already living there.

The value of these renovations depends on more than just aesthetics—it’s about retention and long-term income growth. Upgrades to kitchens, bathrooms, flooring, and lighting are consistently among the most cost-effective and popular. Common areas, pet amenities, and outdoor enhancements can help foster community and improve tenant experience, even as rents rise. As competition intensifies, the owners who find ways to renovate while keeping tenants happy will be the ones most likely to thrive.

Multifamily Focus

Overheard

The Luxury Real Estate Market’s New Selling Tool: Overnight Stays

A growing trend among high-end homebuyers: testing the vibe of a property firsthand by staying overnight—sometimes for days or even months. One Newport Coast estate owner rented his $60 million property for two months at $250,000 a month just to let potential buyers experience the layout, light, and overall feel before deciding. While the couple didn’t buy that house, the visit led them to purchase a nearby home—still a win for the seller.

This “try-before-you-buy” model is spreading across luxury markets—from Hollywood Hills to the Hudson Valley and Texas—where buyers use stays to evaluate everything from plumbing pressure to the rhythm of evening light. For brokers, it’s an experiential shift that recognizes a house is more than bricks and floor plans—it’s a living space that needs to feel right. But not everyone’s on board. Some agents worry about liability, staging mishaps, or worse—one host recounted fire alarms during an unauthorized party stay.

For real estate professionals, this trend signals higher expectations for experiential selling. The houses that move are no longer those dressed up for a quick photo op; they’re the ones shoppers can sleep on. As smartphone-driven impatience gives way to deliberative decision-making, the most compelling listings may soon be the ones where you stay the night and see if you still want to leave in the morning.

Philadelphia’s Largest Office Tower Hits Market Amid Foreclosure and Conversion Plans

Centre Square, Philadelphia’s largest office property, is now on the market while tied up in a foreclosure case. The twin-tower complex at 1500 Market Street totals 1.76 million square feet but is only 36% occupied, with more than 1 million square feet sitting vacant. Court filings show the property owes $375 million on its CMBS loan, though CBRE expects bids closer to $100 million—less than a third of the outstanding debt. The property’s appraised value has fallen from $471 million in 2019 to $223.5 million in late 2024, reflecting the steep decline in office valuations since the pandemic.

CBRE is positioning the site as a redevelopment opportunity, marketing it to investors and developers with experience in conversions. The East Tower, just 19% occupied, is seen as a strong candidate for residential use, thanks to its manageable 23,000-square-foot floor plates. Gensler has already confirmed the feasibility of a conversion. Meanwhile, the West Tower, nearly half occupied, may be better suited for renovations that keep it as office space. The property’s scale and full-block footprint create the potential for a mixed-use destination combining apartments, retail, hospitality, and updated office offerings—what CBRE calls a “city within a city.”

The sale would also resolve a long-running foreclosure process that began in 2023, complicated by the downfall of its owners. Nightingale Properties and Wafra Capital Partners (now InterVest) purchased the asset in 2017 for $328 million, but Nightingale’s CEO has since been sentenced to prison for fraud. With CBRE as receiver and KeyBank as special servicer, a transfer of ownership may finally allow the asset to move forward.

For the U.S. office market, Centre Square illustrates both the depth of distress and the emerging pathways forward. Trophy-sized assets in major markets are trading at deep discounts, forcing lenders and owners to accept losses, while redevelopment into residential or mixed-use is becoming one of the few viable exit strategies. This trend underscores how oversupply, rising vacancies, and structural shifts in office demand are reshaping not just valuations, but the very future of central business districts.

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Propmodo Daily is written and edited by Franco Faraudo with contributions from readers like you and the Propmodo team.

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