Millennials generally expect a digital component to most experiences, whether it’s social planning, paying bills, dating, shopping or work. After all, few Millennials can remember a time before the Internet, and for most of their adult lives, they have only needed to reach into their pocket or purse to access it. But even though we call these pocket devices “smart phones,” for Millennials (and increasingly for older generations as well), the part of this device they use the least is the phone app.
By and large, Millennials don’t want to talk to people. It’s rare that I get a phone call from anyone under 40 years old, both in my personal and professional life, unless that call was scheduled or they’re trying to sell me something. Today, Millennials want to use an app, a mobile website, texting, Snapchat, or any of a multitude of other means to communicate digitally. And who can blame them? You don’t get put on hold or find yourself trapped in a long, unproductive conversation. While waiting for the other party to respond, you can work on other tasks, and there’s typically a complete record of the conversation saved if you need to refer back to it. Texting is simply much more efficient.
What’s more, Millennials don’t necessarily need a physical place to have a connected community. For instance, my youngest son (post-millennial generation Z) is happy to stay in his bedroom and connect with his friends via his texting apps. No hours-long phone calls with the girlfriend, just a never-ending stream of snaps.
Tech over talk is the new norm, and this norm is making its way through commercial real estate. It’s starting with student housing, moving into traditional multifamily and eventually will change how commercial deals will be done.
Economic trends suggest that Millennials will put off home buying and remain renters for longer than previous generations, and, as renters, they expect much more than just high-quality Internet access and a gym on site. Features such as the ability to take a virtual tour of the apartment before signing a lease, online billing and electronic work requests are now expectations.
For example, according to a 2017 report from Zillow on consumer housing trends, 55 percent of Millennials want to submit rental applications online and one-third want to pay rent electronically. They don’t want to make a phone call or write a paper check to get things done, and organizations that stubbornly cling to the old way of doing things will suffer. According to that same Zillow report, Millennials expect a quick response to their digital inquiries: 73 percent say they expect a reply in a day or less, 35 percent will give up and go to the next option if they don’t hear back in that time frame. Multifamily operators must strive to service and engage Millennials digitally because they aren’t likely to stroll in to meet the team in the leasing office. If real estate companies aren’t set up to communicate efficiently using digital means, they will miss out completely on a large part of the available market.
But Millennials aren’t just reshaping multifamily real estate; they’re transforming corporate real estate, as well. Their expectation for a digital experience in their personal lives carries over into the professional sphere, and as they rise through the ranks of their employers, their preferences will come to define the table-stakes for desirable office space. In fact, on the deal side, we’re just starting to see accelerated technology adoption. And in smaller organizations like medical or a law offices, Millennials are likely to manage their business in a similar way to how they manage their home life. So, over time, as Millennials move into the management layer, they’re going to expect to get most real estate business done without needing to jump onto a conference call.
By and large, real estate has traditionally revolved around personal relationships. This aspect of the business will not change. However, the methods we use to create and maintain those relationships and the tools with which we do business are rapidly changing. Real estate companies that resist adopting a digital approach will find themselves left behind, trying to talk to prospects, but finding that no one is listening.