Mark Parrell, right, has actually been called president of Equity Residential. He will change David Neithercut as chief executive later this year.
The executive suite at Equity Residential is facing its 2nd retirement since June, implying a new president will handle a shift in coming months as the largest U.S. apartment realty investment trust buys apartment or condos in the downtowns of big cities.
Mark Parrell, 52, has actually been named president of Chicago-based Equity Residential, which Sam Zell established in the 1960s. Parrell prospers David Neithercut, 62, who will retire as president Dec. 21 after more than a decade in the job, according to the company.
Parrell, who has held the executive vice president and chief financial officer title given that 2007, will be called chief executive and join the business’s board upon Neithercut’s departure. Neithercut, who has led the business since 2006, will stay on the board.
The moves come as the business under Zell, 76, has actually invested in homes in the largest and most reputable cities such as Boston and New York City. He started his Chicago-based realty empire with a task running student houses in the 1960s, inning accordance with his brand-new book, “Am I Being Subtle?”
Neithercut is the 2nd magnate at the home REIT to retire this year. David Santee, 58, stepped down as chief operating officer in late June, and plans to likewise retire by year’s end. He was replaced by Michael Manelis, 49, who was executive vice president of operations.
Both males retiring have been with Equity Residential for a minimum of 20 years. And in a show of strong succession planning, their successors have actually spent a minimum of a years each in their positions prior to the promos.
“Of a board’s lots of responsibilities, the constant recognition and advancement of executive skill are among the most important,” Zell stated in a statement about Parrell’s elevation.
The promos, he added, “are a direct outcome of the priority put by our board on succession planning and are the most current examples of an extremely effective and rigorous process that has actually served the company and its shareholders well.” Parrell was not readily available for remark.
Equity Residential, a powerhouse in high-end apartment or condos, has ownership or investments in 306 residential or commercial properties that consist of 79,412 houses. Though based in Chicago, it does not own any residential or commercial properties in the city but has high-profile properties in Boston, New York, Washington, D.C., Seattle, San Francisco and Southern California.
The moves come amidst prevalent growth of multifamily housing units, which has put pressure on prices, Manelis informed participants at the NAREIT yearly investor conference in June.
New supply in some of the most popular multifamily real estate markets was brisk in 2017 and 2018, he stated, including that 2019 will see yet more new rental advancements amidst additional “extraordinary need.”
He stated that “we know ’18 was the raised supply. As we go into ’19, we will see the brand-new supply fall, however it’s not like you’re completely out of the woods.”
That high need is assisting the bottom line since it’s getting soaked up, which has actually allowed Equity Residential to keep occupancy levels and improve rental rates.