As part of our blog series “The Value Rooftop Amenities Bring to Architectural and Development Projects”, in this installment we shine a light on the positive impact of including top-notch rooftop amenities in residential developments.
Not too long ago, amenities offered in condominium buildings were pretty much limited to indoor pools and a generic "party room". Now, with the size of the apartments shrinking during the last few years, high-end tenants are looking for outdoor spaces – ranging from landscaped terraces and spas to rooftop solariums - to enhance their living experience.
Consequently, architects and developers are creating lifestyles, not simply condo units.
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Rooftop amenities actually sell!
The premise that rooftop amenities have a positive impact on the value and profitability of a high-end residential property derives from the fact that people frequently are willing to pay a premium to live in a building that offers some out-of-the-world amenities at the very top of the building.
Given the increasing importance of such communal spaces, developers and architects have been catching on to the trend, and wooing their chosen market with glitzy, glamorous rooftop features as a way to attract and retain tenants.
Here are some of the ways adding rooftop amenities to your high-end residential tower will impact on property value and profitability:
1. Overall property value increase
Having a resort-style pool, a fully-equipped fitness center, or a dog park on the roof will increase the value of your property because they can attract more high-profile tenants who are willing to pay above market prices for added comfort, convenience and socialization features in their rental property.
High-paying tenants are good for multiple reasons, but two stand out above the rest. First off, they bring in more revenue, which positively impacts your bottom line; and secondly, on-site amenities increase value and return on mixed use market rate.
2. Command higher rents
By adding premium amenities to your development project, you will be able to target higher-end tenants and command higher rents.
This is because these tenants are more than willing to pay more if it amounts to enjoying luxury comforts. Think about it: Wouldn't you appreciate being able to go upstairs to a rooftop deck or garden to enjoy some outdoor time? Or, just imagine if you could do your daily workout right upstairs, and drop your child at a play area right next to the exercise room!
3. Gain leverage for sales
Rooftop amenities have become one of the biggest unique selling points for any residential development.
Most certainly, a well-planned suite of rooftop amenities will increase your project’s market attractiveness. As well, rooftop amenities can become the social focus of the tenant community, and serve a noble purpose well beyond adding value to the building and selling units faster.
4. Improve tenant retention
For new high-end residential apartment complexes, rooftop amenities matter significantly in both attracting tenants and improving tenant retention rates.
Rooftop amenities are increasingly important to the tenant who lives in one of your 400 square foot studios, serving as an extension of their own home. In addition, these features enhance tenants’ living experience by providing a sanctuary among the hustle and bustle outside. These quality of life bonuses make residents feel valued, and more likely to stay longer!
5. Rise above the competition
You have a great property for rent in a prime location in Salt Lake City, but you’re not the only one out there. What can you do to make it stand out from the others?
Nowadays, it’s all about rooftop amenities; those top-notch extras that add more value to an apartment in the eyes of potential tenants.
In fact, a rooftop amenity is more than just a way to stand out from the competition on an Internet search. They exert an almost gravitational pull on prospective buyers and tenants.
6. Appeal to millennials
Millennials are the demographic group that both architects and residential developers really ought to attract. Not only is the millennial generation “the green generation,” but they are also less eager to buy a home and get locked into a mortgage.
Because many of them prefer renting today, they understand that this typically means no garage and no yards. By giving them some of the benefits that these things offer through rooftop amenities, you are sure to increase ROI for your residential development overtime.
Architects and developers should think twice before shooting down the idea of adding a rooftop terrace, a dog park or a children's play area for fear it might be too expensive.
Incorporating a unique suite of rooftop amenities to your residential project offers numerous benefits to both residents and investors. They will improve the quality of life of residents, and also increase the value and profitability of the property.
A landscape architecture firm versed on green roof and amenity design can advise and help you design the kind of resort-style amenities that will bring you the greatest return on your investment.
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