Defined as a desirable or useful feature of a building or place, amenities look to provide comfort and convenience for tenants occupying the property. Amenities encompass additions that are in excess of the basic needs of an individual, and usually include features such as pools, workout facilities, and internet.
Amenities are popular across several real estate asset classes, such as multifamily and student housing, and add another layer of value for the underlying tenant. Amenities are not limited to real estate of this sort, however, and can be included in single-family housing as an added benefit as well.
Offering amenities can help to separate a property from its competition. If competitors are already offering amenity packages, other properties will have to at least offer similar packages to keep up. Amenities should be considered part of the marketing plan.
Amenities can also become part of a company’s identity and help it to attract hard-to-get talent.
There are many different kinds of amenities to offer tenants. So how do you decide? Start with a traditional or base package. This may include such benefits as:
- Child daycare
- Bike racks
- Lobby reception
- Fitness facility
- Covered parking
- Building signage (i.e., address prominently displayed)
The amenities you offer will certainly depend on your tenants’ employees. If most of your tenants have a younger workforce, then all of the above may be desirable to them. Of course, you can also have tenants survey their employees. Your package will also depend on future tenants.
To enhance your amenity offering, you might consider the following as part of an enhanced package:
- Designated rideshare pickup/dropoff location
- EV parking spaces
- Dog runs and washes
- Common area wifi
- Common area conference rooms
- Once per week food truck
There’s an endless configuration when it comes to amenity packages.
Amenities aren’t cheap. When deciding on what to offer, you want to develop a solid method for justifying a return on investment. Don’t go overboard with amenities by offering features that people aren’t going to use. This requires knowing your current and potential clients.
At the end of the day, if the amenities result in bringing in more tenants and stabilizing turnover, they are likely a worthy investment.
