Multifamily Security

Multifamily security is one of the hottest growth verticals for many security manufacturers and professionals, as property owners continue to embrace new technologies and trends within access control, many of them driven by the expectations of tech-savvy renters who have come to expect both security and convenience.

For example, the latest Parks Associates' multifamily research quantifies a significant boost in multifamily resident satisfaction when a property provides smart home tech, with 83% of multi-dwelling-unit (MDU) residents with property-provided smart home devices saying they are satisfied or highly satisfied with their apartment or condo.

"New apartment construction is at historic highs, putting downward pressure on rents. Smart amenities, including connectivity and smart home solutions, can help a property compete and succeed” says Jennifer Kent, VP, Research, Parks Associates. The research firm has been examining the impact of smart home tech on rental value among multifamily properties, and how MDU owners and managers can leverage these offerings to attract high-income residents, improve satisfaction, and add new revenues.

Parks Associates finds broadband connectivity and automated technologies are also in high demand among MDU residents and, once deployed, these solutions are popular with residents, with nearly 80% of those with property-provided smart home devices and services are satisfied with these services.

"We are really excited about the solutions we have built for our multifamily clients that address problems such as property staffing gaps, operational inefficiencies, and manual processes," said Vickie Rodgers, vice president and general manager, Cox Communities, which partnered with Parks on a recent white paper looking at the impact of smart technology on property value.

Digital Transformation

Across the security industry, from the installation of the locks to the security of all integrated systems, the conversation is moving to providing the most seamless and secure experience for the customer while providing added value for the end user.

"Your proposition shifted from just keeping bad people out to now doing everything else [the end user] wants," says Lee Odess, CEO of the Access Control Brief, who recently released a white paper that looks at the differences between legacy and modern enterprise-ready access control systems. "After COVID, there wasn't necessarily trust and comfort that the legacy system was able to do that. These newer, enterprise-ready systems can deliver on that promise because they're built cloud-mobile, and AI-first - they're not adding mobile, cloud in AI as a piece attached - it's the architecture on which they're built”.

As Odess aptly points out, many verticals - hospitality, retail, multifamily, for example - within security are going through a digital transformation, which is attracting more tech-savvy locking and software companies to the access control space.

"Along with that digital transformation, products have to deliver value, so IT is also the digitization of the product versus it just being a home-control cool factor where I can use my phone to get in, or it was a way for me to differentiate as a builder to be able to charge more for rent or keep renters; explains Odess. Now it's an operational efficiency tool and revenue generation tool beyond the cool factor side. So yes, it's digital. This is why every vertical in our industry is going to be impacted. It happened in hospitality, it happened in multifamily, and it’s happening in enterprise commercial real estate right now and it will happen in life sciences, hospitals, and the rest of it. This is the phase change of our industry :1-lat the old guard would like to pretend isn’t going to happen because of safety reasons. And it is going to be disrupted where you deliver safety conveniences and then additional value on top of it."

James Rothstein, Security Industry Association (SIA) Board of Directors chair and operating partner with Lee Equity Partners, agrees, noting, "Our Industry is deeply focused on adding value - from thinking creatively about how security technologies can provide value to office property owners who are seeking to make their buildings more efficient as they adapt to a long-term trend of mobile work to support small businesses like retailers who need their security investments to serve to not only protect their operations, but also give them the insights they need on their retail performance.”

Legacy vs. Modern Enterprise Systems

As Odess points out in his recent white paper, understanding the evolution, distinction, and definitions between legacy and modern enterprise access control systems are crucial in today's rapidly changing business landscape. "This allows organizations to make informed decisions based on their needs, objectives, and industry verticals; he explains. "The industry can drive innovation, understanding, and progress by fostering a collaborative environment and cultivating empathy."

The historical definition of enterprise access control systems, he adds, has paved the way for developing modern systems beyond the fundamental requirements.

"As much as our industry may protest it or deny it, modern enterprise access control systems are dramatically different from the historical enterprise access control systems many manufacturers are still pushing; he says. "By embracing modern enterprise access control systems, organizations can enhance security, streamline operations, and meet their workforce's and customers' evolvPhing needs. The features and capabilities of modern systems empower enterprises to adapt quickly, improve productivity, ensure compliance, and provide a seamless user experience. Furthermore, these systems leverage advanced technologies, such as AI and automation, to proactively address potential issues and maintain high availability."

Odess outlines in his paper some of the key elements of a modern enterprise system - many which are being embraced by the multifamily market, and throughout many verticals within security:

• Flexibility
• Remote Management
• Unique Vertical Solutions
• Cloud-, Mobile-, and AI-First Architectures
• Automated Functionality
• Privacy by Design
• Identity Management Integration
• Platform vs. Point Solution
• Self-Heal
• Unified User Experience
• Automated Access Provisioning
• Value Driven

Modern enterprise access control systems, he adds, "enable organizations to navigate the complexities of access management, protect physical and digital assets, and create secure and efficient environments for employees, visitors, and stakeholders. By embracing the features and capabilities of modern systems, enterprises can position themselves for success in the digital age and contribute to the growth and advancement of their respective industries."

As locksmiths continues to evolve and move into electronic access control, Odess implores them to be cognizant of what is happening with this digital transformation that is taking place within many verticals, not just multifamily.

"There's a rich environment around innovation happening at the software level, but because it's not shiny and brass and bent metal, we don't want to talk about it," he says. "That's where the vibrant market is coming from."