Developers of Luxury Leasing may be overlooking an opportunity to optimize project profitability. Previous blogs have identified an affluent and underserved market of people Empty Nesters & others who are considering “rightsizing” and those seeking Corporate Leasing for the C-Suite. Market research led to data-driven solutions that address their desires in housing. This market has much higher expectations in a home and has the disposable income to pay for what they want. This can result in “revenue add / revenue share” for the developer, which contributes to profitability.

Revenue Add / Revenue Share Opportunity

Affluent people are accustomed to luxury in every area of their homes and will expect this in future spaces. These luxury items can include: 

• Customized closet systems for clothing 
• Wine storage
• Utility room
• Pantry

A design package can be created which allows residents to somewhat customize their home by offering upgrades for closet systems, furniture for work from home, school from home, and other items such as upgraded appliances, window treatments, etc. At a recent Bisnow Multifamily conference in Dallas, one of the panelists mentioned the popularity of the “porch potties for dogs.” What will they think of next? Programs can be established with reputable suppliers for these upgrades, with revenue add / revenue share income going directly to the developer to enhance profitability.

Living in Place Design – Residents Stay Longer

Another important design element to consider incorporating is “Living in Place” (LIP) features to create spaces that are safe, comfortable, and healthy for all ages and abilities of people. If people can move around their home and access things easily, they will stay there longer; no need to move to another home until their body gives out, then on to assisted living. See www.livinginplace.instutute for more info. 

The dynamics of a Mom pushing a baby stroller (visiting Mom and Dad) are not that different than a Mom walking with a walker. Therefore, accessibility is needed for all ages of people, not just aging people. 

Examples of Living in Place Features

There are multiple LIP features that can be easily incorporated into the design, without much additional cost involved including: 

Bathroom Elements

• Zero-entry showers 
• Optional bidets for toilets (upgrade)
• Hardware that functions as grab bars, but don’t look like grab bars  

Kitchen Elements 

• Properly designed cabinetry for ease of retrieval and storage 
• Appropriate hardware for cabinets and doors that are easy to grasp and don’t catch clothing  

General Area Elements to Increase Safety & Accessibility 

• A no-threshold door entry, (see photo) 
• Proper slip resistance for flooring

Worth the Effort

Let’s face it, affluent people are higher maintenance on the front end, however, these residents tend to have much longer rent cycles and make better tenants. If you can engage them early in the process, you have an opportunity to “pre-lease” and lease-up faster, therefore improving NOI. If you have a mixed-use development with a hotel, their guests would serve as a pipeline into this. They have the disposable income to activate and sustain upscale mixed-use and support higher rents, therefore generating long-term revenue and profitability for you.

If all of this seems overwhelming, Generational Designs offers consulting services to assist your development team with incorporating design elements that would attract an affluent market to your projects. 

Click here to book a complimentary initial consultation to learn more about Revenue Add / Revenue Share opportunities.