SPECIAL SECTION: TRANSFORMATION
INVISIBLE INVESTMENTS
drafting tables, and VR goggles. Our goal was to ensure the money spent would result in the use of the space and provide value to residents. In many other buildings, outdated business centers sit empty and unused, so we reworked the concept for those spaces entirely.
“Insta-worthy” - places where residents can take advantage of great photo ops during a party, or art pieces that would become talking points between residents and their guests.
Planning Changes that Add Value for Residents
INVISIBLE INVESTMENT #2 PEOPLE Happy residents are the best market- ing plan a property can have. A person considering a building to move in to is choosing a lifestyle, rather than a cold, hard, built-up area. A lifestyle involves feelings, emotions, motivations, memo- ries, and a sense of place, or belonging. The more you can create highly satisfying lifestyle experiences for residents, the better word-of-mouth marketing becomes. Often, investors spend most of their money on attracting and marketing to new customers, but the bigger ROI may come simply from keeping the existing ones happy. Accord- ing to research published in Forbes, the reward pathways in our brains “over-react disproportionately to losses in comparison to gains. A strategy of minimizing disap- pointments could offer a better return on investment of time, money and resources.”
#1. FEWER GYM
EQUIPMENT PURCHASES Savings: tens of thousands of dollars
After an analysis of residential
demographics, we determined
residents would not likely use the gym equipment and streamlined this budget. #2. REPURPOSED COMMUNITY LIVING AREA Benefits: less maintenance & increased value to residents Instead of creating another community space, we repurposed the lounge as a DIY supply center and maker space, with tools,
3 Invisible Investments That Lead to Significant Returns in Luxury Properties THESE UNSEEN CONSIDERATIONS WILL MAKE OR BREAK YOUR DEALS.
can make a world of difference when it comes to sales and leasing. Real Life Example: A client developing a new residential building in New York City intended to build a traditional business center equipped with desktop, a library lounge, and, additionally, two more lounges to serve as a game room and a communi- ty living room. If they had gone with their initial plans, they probably would have ended up with a lot of expensive, unused space that did not particularly attract residents or add value. After reviewing their plans, we advised a redesign of the business lounge to cre- ate a co-working space to complement the local, vibrant start-up community. Freelancers and entrepreneurs prefer to work on their own laptops, so we ensured plenty of plug points and spent the budget for computers on 3D printers,
The Resident Satisfaction Staff- Training Checklist As your occupancy rates grow, and as the value of the prop- erty increases, the investment into staff should grow accord- ingly. Staff should be trained to deliver an even higher level of service while being empow- ered to make decisions.
ladders, and other things that one would not have in their apartments
by Jeremy Brutus
aving worked with luxury prop- erties for more than 15 years, I’ve learned there are three underrated investments that have a huge impact on returns. Those investments involve planning, people, and community. The first things that usually come to mind when evaluating a new building project or high-end refurbishment are visible: H
landscaping, interiors, and equipment. In reality, the visible side of the deal is just the beginning. INVISIBLE INVESTMENT #1 PLANNING While it is tempting to focus on building the most impressive amenities your budget will allow, it is simpler and more effective to just build the right
amenities and build them well. Many developers spend huge sums hiring architects and interior designers to en- sure the building looks great, but don’t spend enough time or budget engaging experienced amenity planners to make sure the space is actually used. The right planning can significantly shift the direction of a new building project and
but would need for tasks like hanging up a picture.
PRO TIP In our work with clients, we also focus on creating spaces which are
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