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The Apartment Amenities Race
This white paper examines the competitive multihousing rental market in the Washington metro area and the effect of various apartment amenities on project performance. Key findings of the report include:
It seems intuitive that the more amenities an apartment community includes, the better the project performs – meaning a higher rent and faster lease-up pace. However, this study quantifies the relationship between amenities and project performance, including by category of amenity offered.
As a result, this research can be used to budget how much a developer might spend on amenities to enhance lease-up pace and rental rates.
There is no single “silver bullet” amenity that guarantees successful lease-up or above-market rents, but having more amenities generally leads to stronger project performance.
When more amenities are coupled with good design, they lead to an even stronger performance.
There are some surprising findings regarding the impact of amenities on the selling price of apartment communities: Those amenities that enhance tenant efficiency, like a concierge or cleaning service, translate into higher selling prices. However, those amenities that enhance social life, like a swimming pool or party room or fitness center, come with diminishing returns to sale price. The report posits a theory why.