24 Aug Elevating Your Multifamily Portfolio
The Top 10 Most Sought-After Amenities in Commercial Real Estate
In the real estate industry, more than simply having a prime location and stunning design is needed to attract and retain premium tenants. The added amenities truly enhance residents’ lifestyles and set properties apart. As sponsors, we understand this and strive to provide an experience that exceeds expectations.
The pandemic has shifted demand toward residences prioritizing convenience, health, safety, and a high-quality living experience. JLL’s Global Real Estate Outlook reports show that properties offering innovative, lifestyle-enhancing amenities are experiencing higher occupancy rates and rental premiums. To maximize return on investment (ROI) and tenant satisfaction, it is crucial to identify and incorporate such value-added amenities into a property. Based on trends highlighted in an article by ButterflyMX, here is a more extensive list of the top 10 trending amenities:
It is becoming increasingly common for people to work remotely, and co-working spaces are becoming much more prevalent and in demand. This shared workspace design includes open-plan areas for collaboration, private cubicles for focused work, and comfortable lounge areas for breaks or informal tasks. Offering modern, technology-equipped co-working spaces can appeal to professionals and increase the value of a property, as they separate work from home while providing a sense of community and networking. The goal is to provide a communal environment, like a coffee shop or lounge with friends. Co-working spaces are becoming more and more sought after in residential buildings, and their popularity is expected to rise in the future.
Outdoor spaces that allow for relaxation, socializing, and other activities can significantly improve residents’ quality of life. A 2021 article by Bigger Pockets notes that outdoor amenities benefit both owners and tenants. Evidence suggests that spending time outdoors can lower blood pressure and reduce stress, while a well-crafted alfresco design boosts overall property value. Beautifully landscaped gardens, rooftop terraces, outdoor kitchens, pool areas, meditation gardens, and other open-air amenities all enhance the appeal of a property and entice residents to spend more time enjoying the fresh air.
Fur-babies are family members, too. A 2022 National Pet Owners Survey showed that pet ownership is rising, with 70 percent of U.S. households, or about 90.5 million families, owning at least one pet. Offering pet-friendly amenities, such as grooming stations and dog parks, is now reasonably expected and can help attract more renters.
Smart Home Technologies
As the Internet of Things (IoT) continues to permeate our lives, smart home technologies are becoming a standard expectation for high-end tenants. Keyless entry systems, smart thermostats, automated lighting systems, and IoT-enabled security systems provide an added layer of convenience and safety. Smart intercom systems, for instance, allow residents to manage guest access from their smartphones, enhancing security and accessibility. Outdoor areas are not exempt from the technology either; as ownership of electric cars increases, so does the popularity of charging stations in garages and parking spaces.
State-of-the-Art Fitness Centers
In our fast-paced world, wellness takes center stage. JLL’s report cites that wellness facilities are not just a bonus but a necessity in luxury apartments. Offering residents a state-of-the-art, 24/7 accessible fitness center with the latest exercise equipment, personal training services, wellness classes, juice bars, and spa services can enhance the property’s appeal.
As the pandemic pushed more people to work from home and Zoom calls became more abundant, the importance of a reliable high-speed internet connection has only increased. Access to high-speed Wi-Fi and dedicated workspaces within units can meet this demand, attracting a wider pool of tenants.
A growing trend that some developers have taken advantage of is the availability of onsite grab-and-go markets, where residents can purchase snacks, small items, and alcoholic beverages. The amenity provides convenience, saves travel time, and promotes communal gatherings of residents. This service offers an additional luxury for renters and a new revenue stream for the property.
Package Management Solutions
With the continued rise of e-commerce, secure, 24/7 package locker systems can enhance convenience for residents. Many developers now provide smart package lockers that notify residents of deliveries and allow them to access their parcels conveniently in a protected area.
Green & Sustainable Features
Living sustainably is not just a trendy term but a lifestyle. A study by McKinsey and NielsenIQ found that 78 percent of US consumers say a sustainable lifestyle is an essential priority for them. Green amenities such as energy-efficient appliances, solar panels, green roofs, electric vehicle charging stations, and waste recycling programs will reduce the property’s environmental footprint and appeal to eco-conscious tenants. Another sustainable option causing a buzz is the offering of rentable items often infrequently used in apartments. These items, like ladders, drills, bicycles, and stand-up paddleboards, provide a hotel-like concierge experience and are increasingly more popular among younger tenants.
Parking & Transportation
A massive part of a resident’s lifestyle includes transportation. Reserved and visitor parking are desirable in suburban areas with high vehicle ownership. Environmentally friendly and flexible transportation options such as bike storage, car-sharing programs, and designated rideshare pick-up areas appeal to a wide range of tenants.
To achieve long-term success in a multifamily portfolio, it is essential to understand and meet the lifestyle needs of tenants. At Presario, we keep track of tenant trends to ensure that our assets stand out from the competition, remain in demand, and provide impressive returns for our investors.
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