Rooftop amenities are an increasingly viable option for developers to leverage intelligent design in adding value to their overall structure. The North Gulf Coast is a spectacular location for developing specific use common spaces in high vantage points; everything from a rooftop bar to a rooftop swimming pool are a possibility, and this can be a significant selling point for your future tenants.
This is the second article in our ongoing series on development trends around the North Gulf Coast. In this series, we will cover the trends that are affecting the commercial real estate development industry, such as rooftop amenities, certain amenities of high-performance design, and the value of mixed-use development projects. If you have found this information of use, you may find the rest of the series beneficial as well.
Follow the links below:
Part 1 – Commercial Development Trends on the North Gulf Coast for 2018 [and Beyond]
Increasing property value
Desirable amenities attract desirable tenants, plain and simple. Rooftop amenities add value in the eyes of the customer, meaning it captures value from future tenants. People are willing to pay more for a premium product, and this in turn raises the overall property value.
Static occupancy rate
When we say static occupancy rate, we mean that the tenant turnover rate and the vacancy rate should remain low through the lifecycle of the property. Commercial buildings are a long-term investment, meaning that either the developer or the future property owner will be profiting from this investment for years to come.
If proper market research is completed and amenities match target demographics, then this will not only increase tenant satisfaction and retain tenants, but attract tenants in the case of turnovers. Whether a developer is looking to sell or lease – this is a major selling point.
Tailoring a vision
As we have mentioned in other posts, matching and optimizing a vision to its site is one of the most important strategies that a developer can choose. To simplify this process, adding specialized rooftop amenities that are trending with the demographics in the area can help a project capitalize on its environment, and it will stand out and attract those looking for unique features.
Quality & Value
Adding amenities, so long as they match the structure and environment, adds investment value to a building, and creating the highest value product within the proforma’s parameters ought to be a top priority for a developer.
Besides the fact that it increases tenant satisfaction, adding perceived value it reflects very well on the development organization’s brand. Those who are interested in enhancing and protecting their brand, and therefore their futures, should always strive to create a high-quality product.
If a rooftop amenity is being incorporated into otherwise unused space, then this can be a great investment. Adapting an area of your development from laying fallow to enhancing the bottom line can do wonders for the ROI.
Leveraging rooftop amenities in a commercial development project is an excellent way to drive better project opportunities and to increase the perceived value of your vision. In order to do this well, it is important to understand which trends are the best possible option for your vision, and how viable these amenities are within your current economic model.