If there’s a silver lining in the current multifamily development environment, it’s the gift of time. Time enough to work out improved financing and marketing strategies, streamline leasing, identify profitable new markets, investigate proptech and make operational improvements.
What steps can you take now to reduce business risk and improve net operating income while waiting for market conditions to improve?
The best places to start are the kitchen and bathroom, which tenants tend to prioritize. Central to aesthetic appeal and function are the cabinets. As one top regional property manager sums it up, “… the kitchen and bathroom will be the dealbreaker/maker. … The key to attracting and keeping tenants is to offer a quality experience in these rooms.”
6 ways to ensure your kitchens and baths stand out
Now is an ideal time to identify the best supplier to meet your real estate objectives. But making that decision isn’t easy when developers, designers and property management firms are faced with important questions. What’s your budget? What’s in style? What’s the best material? Do you need other accessories or sets? Who delivers and installs — and when?
“Ultimately, pricing remains a critical factor; however, design, quality and size also play significant roles," remarks Jesus Lopez, owner and operator of Cavallino Cabinets, a prominent supplier to leading multifamily owners and general contractors.
Lopez started in the multifamily kitchen and bath trade as an installer, rising in the ranks over the next 25 years to serve as an industry advisor. Today, Cavallino Cabinets specializes in projects of 200 to 10,000+ multi-residential units and works with a who’s who of multifamily owners and contractors.
Lopez offers key considerations for owners, consultants and contractors when evaluating kitchen and bath package suppliers:
1. Pricing. Establish pricing expectations from the outset. "The budget serves as the foundation for all decisions," Lopez states. "What frequently differentiates one supplier from another is their ability to provide customization within a budget. For example, customizing cabinet sizes to fit your kitchen or bath configuration is more cost-effective than altering or removing walls. However, many large retailers do not offer this level of flexibility.”
2. Customization. The capacity to tailor products and services is often crucial. This begins with ensuring compliance with city, state and ADA regulations, while also addressing the goals and specific requests of stakeholders. "From there, we work backwards to design and customize each unit according to their specifications," Lopez explains. "Ultimately, we offer both mass production efficiency and customizable options for your cabinetry."
3. Single vs. multiple vendors. Experience demonstrates that working with a single subcontractor is generally more straightforward and cost-effective than managing multiple subcontractors and vendor relationships, along with their associated processes and timelines. "Owners and general contractors appreciate the convenience of having one vendor responsible for supplying and installing kitchen cabinets, countertops, undermount sinks, fixtures, vanities, mirrors and appliances," Lopez notes. "This approach eliminates concerns about coordinating production, delivery and installation, as everything is handled by a single team."
4. Flatpack vs. pre-assembled cabinets. There are arguments for both. For Lopez, there’s only one way to go for production-minded owners: assembled. “We won’t touch a flatpack. The quality just isn’t there,” Lopez says. “They look good for a month or two. But once you start putting weight on them, they don’t last. That costs everyone money in callbacks and upsets owners and renters — and it backfires on social media.” Flatpacks also strain logistics. Where are they constructed and by whom? Who manages quality control? Lopez says it’s a risk not worth taking.
5. Mock-ups. Owners, contractors and designers are accustomed to working with CAD and 3D images and shop drawings. But even photo realistic images only go so far in communicating styling and function. “We [produce] computer images and shop drawings until we nail down a kitchen and bath solution,” Lopez says. “Then we construct a full-scale mock-up and invite the project team to inspect it. What do they like or dislike? What would they change?”
Lopez says mock-ups like theirs can be unusual within the industry. “We don’t go into production without mock-up approval,” he explains. “It costs time and money to do it. But we’ve found it’s ultimately a bargain for how it prevents change orders and miscommunication.”
6. X-factor. Owners and contractors work hard to eliminate project risk. “Can you afford a late or partial delivery? Or a blown budget? The folks we work with can’t,” Lopez says. “It’s our job to prevent surprises.”
The value of a proven vendor
There are other factors to consider, such as the ability to quickly scale to meet project requirements, sustainability, abundant color and finish choices, national service area and lead times. Price is a factor, too. But, as Lopez advises, “a great price without a proven vendor is a risky bargain.”
As you weigh your options in today’s market, consider how to improve kitchen and bath value and performance. Visit Cavallino Cabinets to learn more.