The surging demand for multifamily housing, specifically rental apartments, has investors, developers, and builders scrambling to keep up. One important trend propelling the multifamily market: AMENITIES. While apartment sizes are shrinking, common areas are expanding and being designed to meet the needs of tenants who want to gather socially and do work remotely. But who are these residents seeking these spaces? Millennials.
Common areas are now being equipped with technological needs to facilitate these live-work interactions like USB ports, dependable Wi-Fi, iCafes, and other web-access features. Moreover, common areas are being decked out with more durable furniture and carpeting to withstand greater usage. Common spaces, particularly in luxury buildings, are beginning to resemble hotels and resorts in their look and feel and the services they provide. For example, an apartment building built by Balfour Beatty in Charlotte, N.C., offers tenants cooking classes conducted by chef educators from Johnson and Wales University, which is located across the street from the complex.
The quality of a property’s amenities plays a huge role in the clientele it attracts and the rents it can fetch. Tenant demand for more and better amenities has launched an arms race among property owners. Dry cleaning services, lofts with office space, and private elevators are a few examples of the more obscure amenities finding their way into multifamily apartments. Furthermore, rooftop decks and terraces are now must-haves for mid and high-rise buildings. These terraces include comfy seating, sonic sound systems, big-screen TVs, kitchens with barbecue grilles and pizza ovens, and cabanas.
Fitness centers are the one amenity that has undergone the most significant transformation over the years. Fitness centers are now a place where tenants can gather, socialize, and exercise. There are classes for yoga, aerobics, cardio and strength training. Though some apartment building owners are offering tenants passes or discounts to nearby gyms, others have gone full force with on-site fitness centers.
Multifamily housing is entering “a bike and dog revolution” with building owners, providing bicycle stations for parking, storage, and even parts and repairs. However, bike-friendly amenities present new spatial and security problems for architects and contractors. “Where do you put them, and how do you keep them safe?” A zoning change in bike-centric Washington, D.C. requires one bike space for every three residential units built.
Pet-friendly buildings are also becoming de rigueur. Pet-owners account for anywhere between 20 to 90% of a building’s residents. They expect their residential communities to offer animal grooming services and exclusive recreational areas for pets. A couple of companies are ahead of the game on this essential amenity, such as an apartment building in St. Louis who added a pet salon and a San Diego residential building who partnered up with a pet care shop which offers a host of grooming, stay, and play services.
As the demand for multifamily housing grows, the trends that are currently propelling the multifamily market too rise. The latest list of amenities includes bike storage and repair, car-sharing service, child-care service, concierge, cooking classes, dry cleaning/laundry service, free WiFi, iCafe, package delivery management, personal shopper, pet grooming, rock-climbing wall, rooftop terrace, spa/massage center, tech/business center, wine cellar, and yoga/aerobics/wellness classes. The never-ending battle of amenities will continue to grow and become more vital to the success of residential buildings. How far will investors, developers, and builders go to keep up with this surging demand for multifamily housing?
Content:
https://www.bdcnetwork.com/5-intriguing-trends-track-multifamily-housing-game
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https://www.bdcnetwork.com/5-intriguing-trends-track-multifamily-housing-game
