Architects know that on-site amenities increase value and return on mixed use market rate, and multifamily properties. This could not be more true today. Tenants desire and expect more from their high-end residential buildings than ever, making the quest for the best amenities a must for Architects and Developers working on high-end residential projects. So, how does the holy grail amenity impact your clients’ return on investment?
THE AMENITY QUEST
Development groups are providing more innovative designs and have found ways to incorporate many beneficial amenities into their buildings. We have seen some creative value-added spaces such as work booths, bike repair stations, pet care stations, energy bars, and even car share services added to properties in hopes of attracting higher paying tenants.
Architects are well aware of this trend, and to satisfy their luxury brand and market rate clients on high-end residential projects, they are complementing their designs with value-added amenities. There is still one amenity of which we know little about, and yet, it is considered the Holy Grail of Amenities: The rooftop amenity.
RAISE VALUATION TO THE ROOF! (PUN INTENDED)
In landscape architecture, the addition of outdoor living spaces has always been a valuation driver. Developers who are looking to complement their architectural design with outdoor amenities do so understanding the positive impact it will have on the increased value of the property. The rooftop deck and amenity space are no exception. The power to give penthouse views to every tenant of the building goes a long way in creating desirability and differentiation for a property. Add a couple of fire pits, BBQs and couches and you have yourself a 5-star amenity as an extension of your building!
Needless to say, the value of your developer client’s building goes to roof! As an Architect it is a must to include it in your market rate projects. This one amenity alone will raise the value of a building well over the cost of investment.
RAISE THE AVERAGE UNIT RENT VALUE
The second return benefit driven by outdoor living roof spaces, is the justification of higher average rent value. This means that because your building has an added value space (rooftop amenity) you can raise the average rent value of units and still have tenants lining up to fill out application forms. This is important when calculating return on an investment property, and as an Architect, this is a selling point to your developer clients.
When a client is focused on high returns from rents on an investment property, a rooftop amenity is a great way to achieve this.
ATTRACT HIGH-VALUE TENANTS
The tenants are the life line of any investment property. For investors, attracting high-value tenants is more than a due diligence or a marketing cap; it is location and design that play the key role in the type of tenants a property will attract, and adding a rooftop amenity with stunning skyline views is the icing on the high-end, luxury residential cake.
In any scenario, urban or rural, an amenity that offers functional quality outdoor space with added views will attract high-value tenants. Millennials and Gen-Xers alike, place common outdoor space high in their books when deciding on a property; add WiFi-equipped space with lounge seating and a stunning view, and you have yourself a golden opportunity desired by high qualified tenants.
CLOSING THOUGHTS
Consider this as another gem to complement your residential high tower designs, make the most of the location and deliver long-lasting added value by incorporating rooftop deck and amenity living spaces. This will ensure your clients’ buildings will always deliver a positive return, and as a result, position your architecture firm as a go-to for luxury high-end market rate design that delivers high ROI and end user experiences that are second to none.