There’s no denying it. Rooftop amenities have quickly become a standard feature for urban multifamily real estate developments. Hanging out on a rooftop deck perfectly captures both the essence of city living — and the attention of would-be residents.
But, are rooftop amenities just another flashy angle for leasing agents to use in sales? Like the overplayed theater rooms and golf simulators that are taking luxury properties by a storm, are rooftops at risk of becoming a fleeting craze?
Without the right design and execution, rooftop amenities can fail to live up to their potential. But they are not a passing trend. Rather, they are the ideal solution for a time when consumers are demanding higher quality outdoor living experiences and when urban land becomes more expensive. Consider the following ways immersive rooftop amenities can increase your development’s profitability.
Rooftop Amenities Increase Rent
Renters will pay more for access to rooftop amenities. They are in high demand, and still relatively few apartment communities have them.
Rooftop amenities increase rents by around $0.20 per square foot, translating to hundreds of thousands of dollars of added revenue for 100+ unit apartment communities.
4th West Apartments in Salt Lake City is an excellent example of the impact rooftop amenities can have on rent. The building boasts the most expansive rooftop amenities in the Salt Lake market. And 4th West consistently charges some of the highest rent per square foot that the burgeoning city has ever seen (while maintaining healthy occupancy rates over 92%).
Rooftop Amenities Increase Retail Opportunities
Rooftops are the ideal location for urban restaurants and bars. Consumers have demonstrated great enthusiasm for socializing on top of buildings where they can take in the views while enjoying their time together.
Whether you lease out the space to a food and beverage operator or take on the management of a public restaurant or bar as part of your company, the potential for generating additional revenue is definitely there. In fact, shortly after opening the Residence Inn Boise, hotel managers decided to take advantage of the resident rooftop amenity deck by opening it up to the public. Now it’s the location of an outdoor bar with weekly live music, weddings, and other special events.
Rooftop Amenities Increase Occupancy
Rooftop amenities help multifamily developments stand out in the minds of potential tenants. Properties with rooftop amenities are more highly sought after.
Today’s renter evaluates apartments online before ever setting foot on the property. They’re eagerly awaiting the next big thing and want to live in a sought-after apartment building. Rooftop amenities are one of the few property gestures that regularly create such a stir. Imagine how reading rave reviews about a rooftop resort might affect would-be tenants in their decision making process. It could very well be the deciding factor between your property and a competitor’s.
If you had the choice between an apartment that gave you access to an exciting rooftop amenity space and one that didn’t, which would you choose? The proof is there and it’s easy to see why properties with rooftop amenities maintain above-average occupancy rates.
Rooftop Amenities Increase Tenant Retention
When your apartment residents experience rooftop amenities, they’ll want to spend more and more time there. Once in the space, the likelihood of opening up to their neighbors and socializing also increases. This leads to friendships that tie them to the community you’ve created.
We’ve heard it on multiple occasions. What people love most about the rooftop amenities we design is the opportunity to network and make connections with other residents. In this case, what the tenants value most is also very valuable to the property owner. As residents make friends within the apartment community, the chances you’ll get them to renew their lease dramatically increases.
While visiting Skyhouse Apartments, the leasing agent told us that when residents find their way to the rooftop amenity, they tend to make it a regular part of their life. This has major implications for retention. Residents who regularly use rooftop amenities must be more likely to stick around. Thus, any retention efforts should be focused on getting residents onto the rooftop so they can make a habit of socializing with their neighbors.
The Bottom Line
Rooftop amenities aren’t just a passing trend. Instead, they are a solid opportunity to increase your revenue. By increasing your rent, occupancy, and retention, as well as potentially adding some retail opportunities, rooftop amenities are one of the best tools available to make your project a standout.
Looking to use rooftop amenities to increase the profitability of your next multifamily development project? Let’s talk.