Investing in a condominium property is an excellent financial vehicle for increasing personal net worth if you choose the right location and consider the tenants. Today’s large-scale investors find lucrative opportunities in urban redevelopment projects, such as Chicago’s 1225 Old Town Highrise. Complex rental rates draw the second-highest net rental income per square foot in Chicago, and the property also holds the distinction of having the highest sales price per square foot in Chicago’s history, according to Curbed Market Watch. Property owners should consider the amenities and built-in benefits for renters in order to stay competitive in the investment arena of condominiums.
Management companies are telling clients to adjust marketing strategies in response to emerging demands from today’s metropolitan tenants. While 24-hour gyms and temperature-controlled parking still attract qualified tenants, there’s a developing penchant for mixed-use buildings that combine high-rise living spaces with healthy, organic food stores, according to Forbes.
Inner-city neighborhoods are seeing dramatic surges in urban revitalization as retailers and developers team up to meet the growing demand for living spaces in metropolitan areas. A one-bedroom luxury apartment in Chicago’s Old Town development with all the “bells and whistles” and a long list of other amenities beyond the first floor market rents for $2,725 monthly, according to Luxury Living Chicago Realty.
Another city building with jaw-dropping amenities and luxuries to draw tenants is Manhattan’s 455 Central Park West. The duplex building features an on-location grocery, children’s playroom, extra storage, and a myriad of other modern conveniences. Bi-level designs boast four bedrooms and six baths and have a 1,110-square foot living/dining area with 37-foot cathedral ceilings, according to Manhattan Scout. Selling prices for two-bedroom units start at just under $3 million.
Trending on a Smaller Scale
Although these partnerships that merge living spaces and retail markets are in considerable demand, not every property owner can afford to build a multi-story housing unit above a full-service grocery store. Full-scale apartments aren’t necessary, according to a real estate professional in Chicago. The agent points out there are 12 complexes in downtown Chicago that have some type of food outlet built on the property, ranging from ice cream parlors to pizza places.
Amenities for Condominium Properties
Investing in the inner-city revitalization projects supports the economy and the environment. Investing in multi-tenant properties that meet consumer demands for more convenience offers investors a healthy return on investment. However, investors that opt to purchase smaller properties can also increase return on investment by concentrating on updating in-house amenities for tenants.
Incorporating outdoor spaces for hiking, biking, golfing, and picnicking increase resale value as much as 14 times over initial construction cost of these amenities, according to National Trails Training Partnership.
Tenants are looking for convenience, safety and access to transportation. The following list of amenities will draw tenants to every property, regardless of the size.
In addition to amenities on the property, tenants value peripheral services such as discounts for dry cleaning, a paid-with-lease membership at a nearby gym or leasing options that include a Direct TV deal.
Consult a Real Estate Specialist
Consumers are looking to find new ways to invest 401K savings. Market analysts often recommend caution when investing in new trends, but the condominium market bears some further investigation.
Consider the facts: The population is growing. Available space for new building homes, apartments, and condos are becoming scarcer daily. Building up, rather than out, in metropolitan areas appears to be the only way to add more living spaces. Tenants want to live close to shopping and dining establishments, grocery stores and work — having it all under one roof satisfies all those desires.
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