May 2022 Forecast Feature | Amenities That Create Value

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DESIGN FORECAST |

MAY 2022

© CID DESIGN GROUP LLC

FEATURE

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THE PURPOSE OF OUR DESIGN FORECAST IS TO S E R V E A S A U S E F U L T O O L T O C R E AT E E N G A G I N G , U N I Q U E , A N D L O N G L A S T I N G S PA C E S A N D BRANDS. WE RESEARCH AND VISION HOW BEST T O D E S I G N F O R TA R G E T M A R K E T S , D I F F E R E N T I AT E , A N D A C H I E V E L O N G E V I T Y. W E T E S T A N D S P O T L I G H T T H E L AT E S T P R O D U C T S A N D P L A C E S A N D R E P O R T O N N AT I O N A L A N D G L O B A L T R E N D S I M P A C T I N G O U R I N D U S T R Y. O U R FO R EC A ST WA S B O R N F RO M A N H O N E ST I N T E N T TO A D D VA LU E A N D B E A CO M M IT TE D C U S T O D I A N O F B R I G H T I D E A S , I N N O V AT I V E T H I N K I N G , A N D S H A R I N G F O R A G R E AT E R G O O D .

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DESIGN DIRECTION C I D

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The ‘Amenities Arms Race’ has led us to a place where the current approach to multifamily amenities is no longer sustainable. Keeping up with the Joneses and ‘box checking’ amenities has become a financial and operational burden that is not serving the needs of an evolving renter. Multifamily residents and developers alike are seeking amenities that create a localized feel, help time-poor residents gain back hours in their day, and elevate the authentic story.

As we enter the post-2020 era, we are embracing the spirit of a clean slate by designing only truly value-creating amenities that speak to the target audience and authentic brand story.

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CONSUMER PROFILE C I D

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AMENITIES THAT CREATE VALUE

Both renters and operators are seeking an optimized approach to amenities that prioritizes renter lifestyle needs and operational ease.

+ time-poor renters and over-extended operations teams looking for timesaving or outsourced solutions + seek value-creating amenities that go beyond box checking

Of renters list ‘seeking better community amenities’ as their primary reason for moving to a different rental community.

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WHAT’S IN | WHAT’S OUT C I D

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AMENITIES THAT CREATE VALUE

Amenities that reduce operational strain

Package locker-only solutions

Third party managed package lockers + rooms Third party package delivery to unit

Third party managed package delivery to units without a backup plan to add on -site package storage if necessary

Gear sharing managed lockers

One large, open fitness space

Conference room managers

Standard commercial coffee machines

Smart vending machines for fresh food, coffee + dry cleaning

Box checking amenities that don’t relate to the brand story

Retail partnerships

Amenities that are too difficult or expensive to operate

Well-centric amenities

Single use spaces Income producing amenities Dedicated leasing offices Sustainability focused amenities 9 © CID DESIGN GROUP LLC

HYBRID PACKAGE LOCKER + ROOM C I D

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31% of renters would pay up to $10 extra per month if it were easier to retrieve packages. In some communities, the package situation is so dire, we have heard that residents are signing up for PO boxes at their local post office to avoid having their packages delivered to their multifamily communities.

We think an optimal package solution is a hybrid approach that combines package lockers with package rooms. With this model, couriers deliver as many packages as they can to the lockers, and the rooms are left for overflow and oversized packages. The package rooms also house cold storage refrigerators. This system works best if the thirdparty package management company assists operationally to funnel 10 packages from the overflow room into the lockers as they free up. © CID DESIGN GROUP LLC

PACKAGE DELIVERY TO UNIT C I D

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AMENITIES THAT CREATE VALUE

While we believe in the power and practicality of the hybrid package-locker-and-room model, we also see much validity in the parallel trend of package delivery to unit.

Fetch is a popular solution for this model. Fetch is a thirdparty courier service that receives resident packages to their own warehouse and then delivers them to each unit.

We believe this is an excellent solution when combined with a designed-in back up plan for package storage onsite should Fetch ever end service.

On the innovation front, we are intrigued by the concept of designing entry vestibules in each unit that couriers would have access to.

These vestibules would be secured with a second locking door to the unit and would have multipurpose functions for valet trash and recycling in addition to courier access for package delivery. © CID DESIGN GROUP LLC

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BOTTLE FILLING C I D

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AMENITIES THAT CREATE VALUE

Bottle filling stations are a well-centric and zero-waste amenity that speaks to healthy living and environmental concerns. Gift residents a property-branded reusable bottle at move in and encourage them to use the bottle filling stations. Consider placing the bottle filling stations on each floor for maximum convenience and visibility. © CID DESIGN GROUP LLC

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ZERO WASTE REFILL STATION C I D

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AMENITIES THAT CREATE VALUE

Zero waste refill stations are an innovative amenity that speaks to a well-centric, sustainable audience. The community would offer a few commercial size, bulk refill containers filled with common home or body care products, like baking soda or hand soap.

Operationally, this can be maintained by partnering with a local zero waste shop, or through buying bulk goods at wholesale retailer. Residents are able to refill their own container rather than buy a replacement that would come in a brand-new bottle.

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SHIFT IN LEASING C I D

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AMENITIES THAT CREATE VALUE

As we move toward more self-guided, virtual leasing, there is even more reason to consider eliminating the leasing office and bringing that square footage into the amenity areas. With the leasing office gone, the agents are free to work alongside residents in the cowork zones. This helps to break the barrier between the leasing agents and the residents, leading to better service.

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LEASABLE SPACES C I D

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AMENITIES THAT CREATE VALUE

Leasable office spaces are becoming more valuable as working from home, and flexible working become the norm. These spaces can double as content creation rooms that can be used for podcasting or creating videos – making them multipurpose.

Leasable event spaces offer value to residents to host large gatherings they would be unable to fit inside their unit.

Branded, beautifully designed spaces add even more value.

These spaces can even be income generating, especially if they are open to the general public. © CID DESIGN GROUP LLC

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ROOM MANAGERS C I D

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AMENITIES THAT CREATE VALUE

Room managers allow anyone with access to reserve connected conference rooms, micro-offices, or even desks. Once the user is at the reserved station, they have additional access to control lighting and AV equipment. This amenity serves both operations and residents by freeing up leasing agents while also giving residents (and non-residents if the rooms are open to the public) control over booking.

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FLEX MEDITATION POD C I D

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Flex your micro-office or phone booth to do double duty as a meditation pod. Encourage residents to take advantage of the soundproof, distraction-free zones for mindful pursuits. Communicate this secondary use with signage and consider a room manager to facilitate reserving time slots.

Resonate Chair | combines vibrational technology that soothes your nervous system and calms your mind with sound and light delivered through headphones and glasses.

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Instant dry cleaning is the next evolution of the dry-cleaning locker. This concierge service saves residents time and offers a service the community really values.

Presso is a vending-style instant dry-cleaning machine.

It features a touch screen user interface and has a pay per use option. The cleaning cycles are all less than 5 minutes long. The Presso team takes care of all operation and maintenance needs, and there is an option to generate revenue. The Presso uses 97% less electricity than traditional dry cleaning.

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SHARE LOCKERS C I D

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AMENITIES THAT CREATE VALUE

Rental lockers are an operational solution to the gear share libraries inspired by the sharing economy. Whether it’s a kitchen equipment share or an outdoor gear share, rental locker services like Brevvie, Tulu, and Ballbox, help to manage and maintain these gear libraries.

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VENDIBEAN C I D

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VendiBean is a craft coffee vending solution that offers barista-quality beverages. The machine comes in a pay-per-cup or complimentary model. The kiosk gives users the option to use their own cup. We see this as a major glow-up to the commercial Starbucks machines that have become the multifamily standard.

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SESAME C I D

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AMENITIES THAT CREATE VALUE

Sesame is a fresh vending solution powered by an AI smart fridge. Sesame works with a nationwide network of entrepreneurs to stock and manage the fridges. Entrepreneurs are looking for a high-traffic space to put their Sesame fridge at no cost to the property – making it an ideal multifamily amenity.

Communities have access to convenient, local, fresh food with zero overhead.

Sesame is still a brand-new company in the early start-up phase, but keep an eye on them, and start planning in your Sesame fridge for new development projects. © CID DESIGN GROUP LLC

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Canairi air quality monitor | The bird flips down when the air quality is poor. This product is still in the crowdfunding stage, but we love the ‘soft-tech’ design approach.

OPERABLE WINDOWS C I D

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AMENITIES THAT CREATE VALUE

Operable windows are a well-centric amenity that has become more important post-2020. We are seeing an increased focus on air quality monitoring, and operable windows are a great way to futureproof for the onset of personal air quality monitors. © CID DESIGN GROUP LLC

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75% of America’s waste is recyclable - we only recycle around 30% of it. 52% of Americans live in multifamily homes. If multifamily begins to recycle en masse, there is a huge potential impact on the national recycling rates.

AMENITIES THAT CREATE VALUE

Recycling rates at multifamily communities average only about 14%, and what is recycled typically includes higher levels of nonrecyclables than are found at single-family residences. As sustainability continues to become an important value to renters, and we see resident demand for recycling increasing, it’s time to take action. Making garbage and recycling equally accessible is key.

Implement recycling chutes alongside garbage chutes, and if concierge trash is offered – also offer concierge recycling. All garbage containers within the property should be collocated with a recycling container. It is important to communicate which items are accepted in recycling. This can be accomplished via signage and digital communication.

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GHOST KITCHEN C I D

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AMENITIES THAT CREATE VALUE

Ghost kitchens are kitchen spaces often shared among multiple restaurants who prepare food for delivery only. Consider carving out space for an on-site ghost kitchen. Offer residents a discount plus super fast delivery. This concept could be taken a step further by creating a property branded ghost kitchen restaurant that is revenue generating and serves the greater community.

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INCUBATOR KITCHEN C I D

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AMENITIES THAT CREATE VALUE

Incubator kitchens are commercially rated spaces that can be rented out to pop up restaurants, catering companies, or side-hustle chefs and bakers looking for a space to prep, cook, and bake. Think of it like a cooking and baking maker space for residents or an income generating opportunity 25 that brings vibrancy and good food. © CID DESIGN GROUP LLC

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More Space, Better Amenities Top Renter Preferences Survey ht t ps://www.mu lt ifa milye xe cut ive.co m/ pro pert y- ma na ge me nt /apart me nt t rends/mo re-s pac e- bet t er -a me n it ie s- t o p-re nt er -pre fere nce s- s ur ve y_o Which Apartment Amenities Do Residents Really Want in 2022? ht t ps://but t erflymx.co m/ b lo g/apa rt me nt -a me nit ie s / Cracking the Code to Better Recycling ht t ps://www.mu lt ifa milye xe cut ive.co m/ pro pert y- ma na ge me nt /crack ing -t heco de- t o - bet t er - recycling _o

Carl Walton, CAM,CAPS RangeWat er Real Est at e | Senio r Direct o r o f Inno vat io n and Desig n, Pro pert y Manage me nt

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CID has or is actively working in every major urban market in the US across 40 states and 65 cities, including Canada. A cri tical part of our process on every single project is a deep market study where we analyze the competition and development pipeline and carefully craft a competitive differentiation strategy. We collect and adapt programmatic and operational concepts and repor t on them in our forecast. This travel and study is key to channeling the market’s pulse and leading ahead of the pack.

We employ research from Esri Tapestry segmentation and PEW Research Center to go beyond the study of generational attributes, understanding psychographic and socioeconomic orientations of America’s changing population. We take the process one step further by identifying the key demographics that are shaping our markets and offering creative and tangible ways to design an d program to capture those specific demographics.

We study Axiomatic databases annually of completed new developments. We visit each community’s website and tally what amenities are advertised both in the home and community to report the most popular. We divide the research between urban and suburban markets. We also collect all extraordinary and unique amenities onto a “unique” checklist and note creative naming of amenities. We also follow key research reported by Kingsley & Associates and Costar, both leading real -estate industry analysts.

We share our research with industry partners and they reciprocally share with us. Large manufacturers invest a tremendous amount of R&D money to be on the forefront, and we watch closely. Some of our favorite professional organizations, such as t he Urban Land Institute, and powerful publications, such as Multi-family Executive, produce leading research that we sift through and fold into our forecast.

Researching popular hashtag search trends reveals many real-time relevancy indicators. We keep a close eye on hashtags in project-relevant locations and study what qualifies as a shareable moment.

Trade shows, festivals, conventions, talks, markets, boots on ground watching, listening, observing and covering hundreds of different shows. © CID DESIGN GROUP LLC

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CID DESIGN GROUP does not receive incentives or funding to promote any product, service, person, or place within o ur fo recast. We res earc h and s hare purely in the spirit of being committed custodians of bright thinking and sharing for a greater good.

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@cid_designgroup O: 239.495.3806 www.cid-designgroup.com design@cid-designgroup.com © CID DESIGN GROUP LLC

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