BRE Properties debuted its Project Velocity at its MultiTech 2000 conference March 16, 2000. Those shareholders and REIT analysts in attendance witnessed the interactive, multimedia Lifestyle Solutions technology that BRE is offering to its multi-family tenants and others in the apartment sector. Project Velocity is BRE's broadband product that deliveries high-speed Internet with a forced entry portal where tenants view BRE's personal screen that functions much like a hotel television. "Over the last few months we've been purposely quiet about what we're been doing to build some momentum in the company," said Frank McDowell, president and chief executive officer. "We decided to pull all our initiatives together into a single event and invite those who we think will have an interest in an innovative approach to multi-family." "[The portal] is the same concept as movies on demand," said Lee Carlson, chief financial officer. "It forces residents to see our screen first. It's a win-win. Tenants can also access the Internet, but we're building a page that becomes valuable to their day-to-day lifestyle." On the BRE screen, residents will be able to select services and products that are valuable to their lifestyle. Through the site, tenants will also be able to arrange and monitor maintenance requests, view a television broadcast quality streaming video, and receive services offered by Bloomberg and MSNBC. The REIT is now negotiating a deal with Webvan as its preferred provider of groceries to residents. "We're creating a technology company that is going to offer these services to other multi-family owners," explained McDowell. "Our shareholders will potentially receive the benefit of having spun-off an Internet based IPO."

Maxims for the Future?

While compiling results for Emerging Trends in Real Estate 2000, editors for Lend Lease Real Estate Investments Inc. and PricewaterhouseCoopers LLP found these eight investment "maxims" emerging from the 150-plus real estate investment authorities who responded to their surveys.

1. Now more than ever, concentrate on the best locations. Twenty-four-hour cities and prime infill locations will be magnets for people and commerce.
2. Focus on premium space; avoid commodity buildings. Fortress regional malls, prime central business district office buildings in 24-hour locations and big-box industrial will flourish.
3. Recognize that the suburbs have peaked. New 24-hour environments with urbanized features like high-rise apartments and better hotel locations will be created as suburban residents gravitate to the best markets.
4. Redevelop underutilized space in supply-constrained areas. Underutilized properties in the right markets will generate premium returns through infill redevelopment strategies.
5. Follow the Baby Boomers! 75 million strong.
6. Don't ignore the Echo Boom. The "Net Generation" will push advances in virtual technologies and conveniences at home, in the workplace and when shopping.
7. Move overseas for opportunity investing. For more enhanced returns, turn to less developed regions of the world—Asia, Eastern Europe and Latin America. But beware of the risks!
8. Take advantage of commercial mortgage-backed securities arbitrage opportunities. Dislocations between capital market spreads and real estate fundamentals will present savvy investors with some excellent opportunities.