NAREIM Asset Management Meeting

Key takeaways

June 3-4, 2025

Given the current state of the market, investors are hyperfocused on gaining a deep understanding of the firms they invest with, “both the people and the assets,” members heard during a session focused on investor reporting at NAREIM’s Asset Management meeting in New York City this week.

“Everyone is interested in looking under the hood a bit more,” one member shared. “Conversely, as asset managers we are getting called in to highlight our firm’s expertise and pulled into pitches a lot more. Given the focus on operations... the asset manager function is cool again.”

In addition, asset managers are traveling more, taking investors to see assets, the member added. 

Other members noted that frequent, structured touch-points with investors, such as bi-weekly update calls, are a two-way street that they also benefit from.

“Our investors have a broader view and give us insights into other asset classes outside of real estate,” a member shared.  

Click here to see the presentations and poll results from the Asset Management meeting.

Other key takeaways related to investor reporting:

• One member firm created a system to “avoid providing anything bespoke” that has successfully preempted questions: “Our view was to make things as simple as possible, and make it about repeatability,” the member shared. “We created standardized language for the write-up we provide on each asset and don’t deviate from the format.”

• Another member shared that they’ve dropped generic macroeconomic analysis in their reporting and skip right to providing their perspective and insights into what is influencing their investment decisions. “Our investors are not paying us to tell them what GDP is,” the member shared.

• While it’s crucial to warn investors about bad news—like a large tenant vacating or a dramatic increase in supply in a given market—since no one likes to be surprised, one member shared feedback they received from an investor on the unvarnished views they were providing during the height of the pandemic. “Our investors told us it was too much and to dial it back."

• One member recommended a vendor, Pereview, that they have leveraged to create an online portal that investors can log into and view both qualitative and quantitative reporting materials, which the firm updates quarterly.

Working With Lenders: What’s Right For The Asset?

At the meeting, members picked the brains of a handful of lenders on how they like to work with borrowers. 

Tips and honest advice lenders shared for approaches to take when there are issues related to a loan included:

• If it’s a syndicated loan, come early. A longer timeline is necessary to get everyone’s consent on whatever solution is arrived at.

• More time also equals more runway for the lender to leverage their knowledge in order to offer solutions, like an agency solution, or a CMBS solution.

• The contents of the business plan for the asset makes a difference in a lender's decision on whether to foreclose: "If there’s a quick way to lease it or rezone it to create value, we might foreclose. If it’s a 20-year plan, that won’t work for us and we won’t," members heard.

• While often the solution is to put more equity in, lenders emphasized that it matters what the money would be used for. Using money to improve the situation of the asset, like for tenant improvement allowances, is viewed favorably.

Setting Apartment Rents

Sixty-five percent of meeting attendees polled said their firms use revenue management software (e.g., RealPage, LRO, Yardi Rent Maximizer) to determine rents.

However, downsides of automatic third-party pricing that adjusts rents daily are many, members heard. The ‘black box’ lack of transparency makes it difficult for on-site teams to diagnose issues. It also obscures operational inefficiencies and lowers accountability teams feel.

Furthermore, overuse of concessions pushes gross rents, but not in the way that actually matters.

“The market does not recognize gross rents when it comes time to sell the asset,” members heard. Instead, overuse of concessions increases likelihood of skips. 

By bringing pricing in-house and building proprietary algorithms supplemented by frequent human adjustments, two member firms were able to achieve more sustainable and gradual rent growth that reduces churn and protects NOI.

The Solution

• The firms built their own proprietary ‘black boxes’ that they understood and could iterate on.

• Weekly price adjustment, rather than daily.

• Concessions used only to strategically adjust lease expirations.

• Marrying on-the-ground knowledge of property management teams with a consultant—working exclusively for the firm—specializing in analysis of building design and unit-specific attributes and what premiums they can command.

• Weekly pricing calls that include both on-site teams and pricing expert to review and validate data before setting final rents.

• Consolidation of all business with property management firm reduced organization friction.

The Results

• Relocation of lease expirations to peak leasing periods.

• Reduction in need for rent discounts later to maintain occupancy.

• Better quality tenants.

• On-site teams that are involved in unit pricing decisions are more motivated, because they have impact and feel a degree of autonomy.

Additional Insights On Apartment Rents and Seasonality

• While conventional wisdom within the industry states that summer is prime leasing season, there are granular variations to this seasonality, depending on unit type, members heard.

• Demand for one-bedrooms, typically occupied by individuals or couples, is highest in May and August.  

• In contrast, three-bedroom units, which are often occupied by families, lease better three months ahead of the move-in dates. Namely, families want to move in during prime leasing season (June, July and August), but want to lock-in where they will live in March, April, and May, members heard.

• Using a proprietary pricing system allows for manual override of previously automatic adjustments, which were based on incorrect assumptions.

• “Our model allows us to incorporate the student calendar,” members heard. “We can provide discounts during spring break, when we know our prospective customers aren’t paying as much attention, but end those discounts when students are back in the class and thinking about securing housing for the following year.”

To download the presentations from the meeting, click here.