AMENITIES

Urban Sanctuaries for Privacy and Wellness

Tranquility and peace can be hard to find in the city. Pockets of calm that offer an escape from the frenetic energy of urban life without sacrificing its convenience are attractive to city-dwelling buyers and renters.

Amazon’s HQ2 in the bustling National Landing will feature an outdoor hiking trail winding up the exterior of the structure, populated by plants indigenous to the Blue Ridge Mountains.

In the hospitality industry we are seeing the launch of destination spa-like resorts in major metros. Aman New York opened in 2022 with one in Beverly Hills due to open in 2026. In Europe, Six Senses Rome will open in March. Edition hotels designed a plant-filled refuge in the middle of Tokyo which began welcoming international travelers in 2022.

Like the future of luxury travel, we also want to offer our prospects and residents the best of both worlds: quiet, secluded, comfort with culture, excitement, and adventure on-demand.

With the neighborhood as our greatest amenity to accomplish the latter, how do we create this sanctuary environment (without being an actual spa) to accomplish the former?

We can start with the ability to shut out the city noise. Better sound attenuation, with a focus on specific areas of the residence that are dedicated for work and rest can help residents relax or focus.

Speaking of the indoors, indoor air quality has been a strong focus considering Covid’s airborne transmission, recent strings of wildfires, and a greater awareness of the links between air pollution and human health. Built-in air purifiers and even the transition toward induction cooking are ways IAQ is coming into focus in new construction.

Circadian, or human-centric lighting, mirrors the natural path of the sun from dawn to dusk and can be incorporated into units and common areas.

Outdoor space is vital but adding a layer of privacy will enhance a sanctuary like experience. This can be accomplished with dedicated outdoor space for individual residences or in common areas with green walls, cabanas, and smaller seating groupings.

WFH, but make it Five-Star

We are always borrowing ideas and taking inspiration from other asset classes in real estate—and now it’s office looking toward hospitality. Employers are looking to five-star experiences to draw employees back to the in-person office.

L’Oréal’s Los Angeles office offers a concierge service for employees subsidized at $5 per hour. This concierge picks up dry cleaning and fills gas tanks while employees enjoy an uninterrupted in-office workday and incentivizes workers to come into the office to access the concierge.

In London, Google’s Kings Cross development will feature a pool, rooftop running trail, and on-demand massages.

The past few years have created a class of workers who value the comforts of working from home, but may be starting to feel the growing pains and malaise of trying to make their home work as an office. Now that many people are working from home for at least part of their workweek, functional workspace both in and out of the individual unit is not a luxury—it’s a requirement.

Earlier in this report we discussed indications that dens may be in higher demand as working from home becomes more common. Beyond providing the basic space to office at home, how else can we uplevel the work-from-home experience at our communities? Quality sound attenuation is also relevant here as is uncompromised high-quality, high-speed internet throughout the community. PrintWithMe is a network of self-serve wireless printers that can be installed in multifamily communities that can provide resident printing either for a cost or as an amenity.

Concierge services at home also allow for greater productivity. We can look beyond traditional concierges to partnering with broader service providers who can tackle some of the more routine daily tasks that traditionally have to be accomplished outside of the home.

Future-proofing, Now

The last several years have shown significant growth demand for electric and hybrid-electric vehicles. EV and HEV sales soared in 2022. In the U.S., sales volume surpassed 800,000 vehicles for the first time in 2022, representing a 65% increase over 2021. Bolstered by government-backed incentives and new product offerings, Cox Automotive is forecasting 1 million EV sales in 2023.

Home charging is often an essential consideration to justify the lifestyle change and higher price that comes with electric vehicles. A new study from the University of Maryland’s Center for Global Sustainability (CGS) finds that homebuyers are willing to pay a premium in areas where there is access to charging stations.

Research finds that increased availability of EV charging infrastructure increased home values by nearly 3.3% in California—boosting an average house by $17,000. Including EV charging stations has long been a “wait and see” with many developers taking the preliminary step to wire, but not fully install. However, now may be the time to take the next step in providing accessible EV charging stations.

Low-maintenance and therefore low-stress is one of the largest appeals of new construction. However, even in new construction, issues arise, and it can be incredibly time consuming and frustrating for owners and developers alike.

Birdwatch, servicing Washington, D.C. and Philadelphia, provides homeowners concierge preventive maintenance and repair work via an ongoing membership service. Things going wrong in a new home can quickly sour what should be an exciting and joyful time. This service-based amenity can help ensure that the sparkle does not fade.

Brand as an Amenity

The Ritz-Carlton Residences at Chevy Chase Lake commenced sales in spring 2021 as the third Ritz-Carlton Residences in the D.C. area, but the first stand-alone residences without a hotel component. Ritz-Carlton is renowned for its legendary service and buyers see this as a desirable and key amenity.

Apartments by Marriott Bonvoy was announced in late 2022. Unlike Marriott’s existing extended-stay product, Apartments will not provide traditional hotel services, such as food and beverage, meeting spaces, and retail, but will be backed by be Marriott’s reservations engine and Marriott Bonvoy loyalty program. These apartments also won’t be within existing hotels, but rather will be standalone developments.

The 90-unit JW Marriott Residences at Reston Station is scheduled to deliver in late 2024.

Infamous WeWork founder Adam Neumann has a new residential concept. Branded as “Flow” it will work to “disrupt the world’s largest asset class” by introducing a model that combines the best parts of renting and homeownership.

The idea of branding a product is creating the expectation for consistent services and features. By branding communities, developers are hoping to use this shortcut to create a compelling value proposition.