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When The Benefits Don't Outweigh The Costs Of Apartment Amenities

Sometimes more amenities come with diminishing returns to sales price, according to a new study by Newmark Knight Frank.

Greg Leisch

WASHINGTON, DC–It is clear that apartments — and offices for that matter — are increasingly being defined by the type of amenities they offer. Developers know this and have been incorporating such features as pools, fitness centers, rooftop lounges and firepits — even pet spas — into their designs. Service amenities are also part of the mix, such as packaging handling and valet. Such efforts have paid off: in general we can say that the more amenities that are part of an apartment building, the higher the rent that building can command and the faster the place will lease.

Now, in a new study, Newmark Knight Frank has quantified these amenities so a developer can reverse engineer how much it can budget for amenities given their expectations for rent and absorption pace. For the most part — with one notable exception — NKF’s findings are intuitive. They include:

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Erika Morphy

Erika Morphy

Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.

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