The multifamily housing industry is under immense pressure. Rising borrowing rates make renting attractive, but an oversupply of new housing developments is flooding markets, increasing competition, driving down rent rates, and prompting more renter concessions. Meanwhile, escalating labor and supply costs are squeezing budgets, leaving multifamily owners and operators searching for solutions. As a result, the need for cost savings and efficient procurement solutions has never been more critical.
From labor shortages to decentralized purchasing, multifamily operators often struggle to streamline operations across properties. Tail spend, which includes varied expenses like landscaping, pest control, and office supplies and furnishings, is a major challenge, as these costs are often managed locally.
This fragmented approach can lead to inefficiencies, higher costs, and missed opportunities to optimize spending or secure better vendor agreements. Without centralized oversight, multifamily operators may also experience rogue spending by individual site teams, further complicating budget management and reducing overall cost efficiency.
Group purchasing organizations (GPOs) offer a powerful solution for multifamily owners and operators seeking to reduce operational expenses and boost net operating income (NOI). Similar to a bulk purchasing warehouse for businesses, GPOs leverage pooled buying power to negotiate exclusive supplier contracts and discounts. This drives savings in both core and tail spend categories—ranging from essential maintenance items to cleaning supplies and uniforms.
Take Cardinal Group, for example. This multifamily operator, managing over 50,000 units, partnered with OMNIA Partners to centralize its purchasing strategy. With access to competitive contracts and tailored insights, OMNIA Partners helped Cardinal Group reduce rogue spending, uncover significant cost saving opportunities, and regain control of its procurement strategy—all within just one month.
See more about how Cardinal Group transformed its operations with OMNIA Partners.
GPOs don’t just help reduce costs—they also open up new revenue opportunities. Multifamily properties can earn ancillary income through strategic partnerships, such as leasing rooftop space to cellular carriers or offering resident services like renters’ insurance and car rentals.
In one notable success story, OMNIA Partners helped a multifamily operator managing 10,000 units revise their rooftop lease agreements. Using its expertise and vetted supplier relationships, OMNIA Partners identified a better provider and restructured the lease terms. The result was a 94% increase in rental income—an additional $300,000 per month—without requiring any physical changes to the properties! OMNIA Partners also negotiated annual rent increases, startup cost coverage, and reimbursement for future tax and utility liabilities, delivering long-term financial gains for the operator.
Read more about this major success here!
Not all GPOs are created equal. When evaluating options, multifamily owners should look for:
With the right GPO, multifamily operators can optimize costs, streamline operations, and enhance their NOI. It’s not just about saving money—it’s about driving long-term value and improving property performance.
Want to dive deeper into multifamily challenges and the GPO solutions that can help? Download the full playbook today—for free!
As your partner in procurement, OMNIA Partners is dedicated to providing solutions for multifamily operators, helping them enhance their purchasing strategies. With a free membership, you'll gain access to a robust portfolio of leading supplier contracts, tailored analytics, and subject matter experts ready to help you refine spending, reduce costs, and boost efficiency.
Ready to experience the GPO advantage? Explore our contract portfolio today and discover how OMNIA Partners can deliver exceptional value for your operations.