Tackling Rehabs on a Budget
Digested from Multi-Housing News
In today’s competitive environment, properly planning your redesign and including the right amenities could be the difference between success and failure.
With strong investor appetite for value-add opportunities, the apartment renovation market remains hot. But a seemingly endless supply of amenities to offer and sky-high labor costs make it easy to blow your rehab budget.
To keep costs under control, Fogelman’s David Nischwitz, writing for Multi-Housing News, says it is important to understand “the investment strategy, the competitive landscape and weigh each project against the opportunity it presents to ensure return.”
That said, there are some important features that anyone doing an apartment renovation needs to remember to include in today’s competitive environment. One of those is the fitness center.
“In the last five years, fitness has rapidly evolved with the rise of boutique fitness and on-demand apps,” Nischwitz wrote. “With that, there has been a seismic shift in the design of multifamily fitness centers. These are moving away from the traditional, weight room layout with racks of dumbbells and big-gym machinery to a more customized studio approach with circuit and cardio trainers, Pilates, spin and yoga spaces and a focus on core equipment.”
If residents are connected emotionally to a community, it can lead to higher retention and rents.
“Redesigns and amenity selection can play an important role in community building,” Nischwitz wrote. “For example, clubhouse renovations now include more open floorplans with soft seating lounges, coffee kiosks, dedicated Wi-Fi, iPad ports and even gaming areas with Pacman. With more residents working from home, there is also an increased desire for flexibility in community and coworking spaces, which is now trending in multifamily redevelopment.”