The demand from renters for multifamily units remains strong across the United States, according to the latest research from Lee & Associates.

In its second quarter 2025 multifamily report, Lee & Associates said that net absorption during the quarter in the United States totaled 136,007 units. That big number isn’t unusual: Lee & Associates said that during the last six quarters, renters have leased 816,814 multifamily units across the country.

This strong leasing activity has brought vacancy rates down. The report says that the U.S. multifamily vacancy rate fell 10 basis points to 8.1% as of the end of the second quarter. This largely due to the rising demand for Class-A apartment units, a segment of the multifamily market in which demand still exceeds supply.

U.S. rental demand stood at 267,273 units in the second quarter. This follows the leasing of 548,911 rental units in 2024, the second-highest amount on record. This can be partly attributed to the members of Gen Z who are entering the prime apartment rental age. At the same time, a growing number of Baby Boomers are reaching an age in which renting is becoming a good option.

New construction activity has tapered off, though, in this sector. Lee & Associates reported that net apartment deliveries have declined for three consecutive quarters, falling nearly 30% to less than 130,000 units in the first quarter. And forecasts show that fewer than 80,000 multifamily units are scheduled for delivery in the fourth quarter of this year.

JPI broke ground on Jefferson Kirbybrook, a 269-home, townhome community in Grand Prairie, Texas. 

Jefferson Kirbybrook will provide a mix of two- and three-bedroom, two-story townhomes, each featuring private yards and garages. Residents will also enjoy access to a range of amenities, including a resort-style pool and lounge, modern clubhouse, fitness center, dog park, and outdoor grilling areas. 

Located just off Great Southwest Parkway, the community will benefit from direct access to TX 360, I-20 and SH 161 (George Bush), connecting the major employment hubs, airports, retail, and recreation of the surrounding area. Some examples of these include Lockheed Martin, General Motors, Texas Health Resources, DFW Airport, the University of Texas at Arlington, Grand Prairie Premium Outlets, IKEA, and Epic Central, home to Epic Waters Indoor Waterpark and Bolder Adventure Park. 

The first homes at Jefferson Kirbybrook are expected to be available for lease in early 2026.

 JLL Capital Markets arranged the sale of Preston Stonebrook, a 53,553-square-foot retail center in Frisco, Texas.

JLL worked on behalf of the seller, Venture Investment Partners. Their team of seasoned real estate experts, led by Bo Brownlee and Easley Waggoner, Jr., creates significant value through strategic improvements and enhancements, leveraging extensive industry knowledge to maximize investment returns.

Built in 1997, the 93%-leased Preston Stonebrook features a strong tenant mix with key retailers including Plato’s Closet, Emler Swim School, Dogtopia and Horizon Hot Yoga. The property has demonstrated impressive leasing momentum with over 24,000 square feet of recent leasing activity and tenants averaging 10.6 years of tenure.

Situated at 7151-7227 Preston Rd., the property serves an affluent customer base with average household incomes of $158,247 within a three-mile radius and a population of over 98,800 residents. The center benefits from its strategic location along Preston Road, the spine of Dallas’s northern growth corridor, and draws from a daytime population of 120,000 within three miles.

JLL Capital Market’s Investment Sales and Advisory team representing the seller was led by Senior Managing Director Adam Howells and Director Erin Lazarus.

CBRE has been selected by Crow Holdings Development to market for lease a new industrial development, Hightower Business Park, in Houston, Texas.

Hightower Business Park is located at 6000 McHard Road in Houston, at the intersection of McHard Road and the brand-new segment of Chimney Road currently under construction by Fort Bend County. The class A, multi-tenant industrial development consists of 180 acres and six state-of-the-art buildings with turnkey amenities and flexible floor plans. Phase one includes building one (163,930 sq. ft.), building two (343,332 sq. ft.) and building three (228,954 sq. ft.).  Phase two includes building four (179,311 sq. ft.), building five (179,311 sq. ft.) and building six (737,437 sq. ft.).

Construction on phase one has already begun and is expected to deliver in the second quarter of 2026.

Buildings in phase one will feature clear heights ranging from 32 to 36 feet, be equipped with advanced ESFR sprinkler systems and provide ample trailer parking to accommodate logistics needs. Phase two will be delivered at a later date; the developer is actively exploring build-to-suit options for these buildings to meet the specific requirements of future tenants.

The owner will also pursue land sales of a 12.5-acre tract and a 3.6-acre tract on the property.

Hightower Business Park is situated in Houston’s thriving southwest submarket with proximity to Fort Bend Parkway, Sam Houston Tollway, Highway 6 and Highway 288. This strategic location is ideal for delivering top-tier service and efficient distribution. Additionally, the property lies within Fort Bend County, recognized as one of the fastest-growing counties in the United States. This area boasts an educated workforce, affordable housing options and a highly supportive business climate, making it an attractive destination for companies looking to expand or establish their operations.

Faron Wiley, Joseph Smith and Greg Holmes of CBRE will market the property on behalf of the Dallas-based real estate development firm.

Today’s rental market is pushing property managers to shift their priorities significantly to remain competitive. Multifamily vacancies have risen to 6.3%, the highest levels we’ve seen since 2011—even including the early days of the COVID-19 pandemic. It’s no surprise, then, that maintaining occupancy rates is now the top threat property managers say they face. 

In a competitive market, resident experience is more important than ever to attract new residents and drive retention. Modern consumer technology has evolved renter expectations, and property managers need to think differently to satisfy new and current residents. 

New data from AppFolio’s 2025 Renter Preferences Report sheds light on an overlooked way to stand out and delight renters: closing the resident services gap. According to the report, the demand for residential services, such as onboarding services and digital experiences, far exceeds the current availability. Let’s explore this gap in available resident services and how property managers can elevate their resident experience to close it.

Adam Feinstein (Photo courtesy of AppFolio.)

The Modern Rental Landscape

During the pandemic, the demand for renting was significant. With rental interest so high, property managers were able to focus on top-of-funnel efforts, like promoting listings and engaging through social media, to bring in new residents.

Now, move-in trends have changed, with rental vacancies approaching a 15-year high. Meanwhile, the number of new units available for leasing has continued to climb, expected to cap out at more than 600,000 units in 2025, which is slightly more than in 2024.

Top-of-funnel tactics are no longer enough to offset this dramatic shift. Property managers’ top concern is maintaining occupancy rates, and when it comes to occupancy, current renter satisfaction creates a massive ripple effect.

According to the 2025 Renter Preferences Report, satisfied renters are 71% more likely to renew their lease and over five times more likely to recommend their property manager. To focus their efforts on occupancy, property managers need to shift from a demand mindset to an experience mindset—to deliver a first-class experience to the residents they have while differentiating themselves to prospective renters.

But what do renters want their ideal rental experience to look like?

The Resident Services Gap

The demand for several resident services that renters prioritize far exceeds their current availability: 

• Over three-quarters of renters find it important to have an online resident portal or mobile app, but only 57% said they have one
• 71% place importance on benefit packages or bundled add-on services, while only 42% have these
• 61% find smart home technology important, while only 45% have it in their units
• 60% of those who have received digital move-in services found them important, but only 38% had them available

Beyond the significant delta between high-importance services and their availability, it’s worth noting that Gen Z places the greatest importance on these services, emphasizing the changing expectations of a new generation of renters. Gen Z is the only generational group of renters that is actively growing and will be the single largest group of renters by 2030.

Not only are these services important to residents, but 79% of residents are willing to pay for at least one resident service through their property manager, including Internet, renters insurance, a renter rewards program and pest control. 

Closing the Resident Services Gap

In this renter’s market, differentiation is key. And the smartest way to stand apart is by offering a high-quality experience that delivers what residents are looking for—but aren’t getting.

One of the greatest pain points for renters is the move-in process, making it a prime opportunity for property managers to set themselves apart. Seventy-five percent of residents experience challenges with moving in, and modern services can make it much smoother.

Only 38% of residents have digital move-in services available, while 81% who’ve used them found them helpful. With such a large portion of residents struggling with moving in and such a low number of residents with digital move-in services currently available, making these services accessible should be a top priority for property managers.

The other prominent opportunity for property managers to improve the experience of their current residents and attract new ones is digitization. Aside from move-in services, the most important resident needs with large deficits in availability are having a resident portal or mobile app, and smart home technology.

Especially as younger generations continue to take over the rental market, expectations for a progressively digitized resident experience are increasing. Offering digital services like a resident portal, mobile app, and smart home technology in units creates more renter-friendly experiences and empowers residents to manage their rental needs with the touch of a button.

Adam Feinstein, is vice president of product for AppFolio.

Marcus & Millichap closed the sale of Fossil Creek at Alta Mesa, an 11,228-square-foot, multi-tenant retail center in Fort Worth, Texas. 

Chris Gainey and Philip Levy, investment specialists in Marcus & Millichap’s Dallas office, represented the seller, a Dallas–Fort Worth-based developer, in the transaction.  

Fossil Creek at Alta Mesa is located at 6249 Altamesa Blvd., situated within the Tavolo Park development near the Bryant Irvin Road intersection. Built in 2023, the property is 100 percent occupied and sits on a 1.35-acre lot. It is fully leased to a mix of tenants including Meza Pizza, RevFit, Creek Liquor Wine & Cigar, Resort Nail Bar and Stretch Zone. 

Tavolo Park is a 468-acre, master-planned development featuring single-family and multi-family housing, a 100,000-square-foot medical office, hotel, retail, and lifestyle amenities including trails, parks, and a lake.