Cameron Gunter, Founder/CEO of Provo-based PEG Companies, said firms in the multi-family arena that have good financial flexibility and strong capital partnerships will always look to capitalize during volatile, or perhaps unfavorable, market conditions.

"We believe that financial crises in markets always create opportunity if you’re looking in the right places and positioning yourself appropriately," said Gunter, whose firm has developed several MF projects including recently completed downtown Salt Lake projects Seven 02 Main Apartments and Paperbox Lofts. "As we analyze trends and forecast the future, we recognize many potential acquisition opportunities on the horizon with over one trillion dollars’ worth of debt coming due that a lot of owners/operators won’t be able to pay. Because we are a vertically integrated firm, we are nimble, able to pivot when necessary, and can operate our properties with absolute efficiency. We are also able to effectively convert properties such as hotels and office buildings into multifamily properties, strategizing around cap rate arbitrage as a hedge against inflation."

Kamron Barr, Owner of Clinton-based Barr, Co., said "we have definitely seen the market slower due to bank requirements; it is not to say that good deals can't be done. It is just working through the complexities."

Barr has a townhome project under construction and is looking to break ground on four MF projects in Utah this year, with another six apartment complexes planned for 2024.

Architecture firms working in this market are also doing all they can to keep up with expanding developer wish lists and cutting-edge design trends. 

"The only people developing are those with deep pockets," said Jory Walker, President of Salt Lake-based Beecher Walker Architects. "Banks are much tighter, interest rates are so high [...] some developers are having to wait." 

Walker illustrated how much costs have risen in recent years as well, saying a developer could build a multi-family project for $185,000 per door pre-pandemic (3-4 years ago); now that same project is $300,000 per door, a 60% jump. "It's not that they don't want to develop, it's right now it doesn't make sense until banks come around and interest rates get better."

Walker said his firm pivoted from office to multi-family several years ago, which proved challenging initially given the different nature of projects. 

"It's a harder product to design for many reasons," he said, "but I enjoy doing it because I love solving a problem. It's important as an architect to shuck and jive and learn how to modify what you're doing to follow what the market is doing." 

Walker said all multi-family projects are unique in and of themselves, so it's hard to implement any kind of "cookie-cutter" measures in the design process. In addition, building codes change often and frankly, developers are "getting more sophisticated" with their expectations, making designers adjust as needed. 



Walker also cited an increase of and better overall amenities within multi-family projects as a primary design hot button for developers. "That's what has changed the most in the apartment business: people will live in [a smaller] apartment if it has more of a resort lifestyle on site. It's the benefit of having an entire resort around you—you can live like a rock star."