Thursday, August 5, 2021 / by Ken Couture
Do you want to live in a luxurious high-rise building in Las Vegas, but do not provide services for drunken tourists playing slot machines in the lobby, but provide a well-equipped, private entertainment venue?
Or what about Miami’s boutique resorts, where there are not only brand-name gyms, but also shops, restaurants, world-renowned spas, and shared workspaces?
This scenario, a mix of living spaces and conglomerates, is emerging as a generational change, looking at residential real estate from a whole new perspective. The two organizing poles of this industry have always been cost and location. Now, there is a third term: vitality. It involves the deliberate creation of an environment that integrates commercial, entertainment, and cultural facilities to set a hyperdynamic tone for residential living. My experience in real estate development and remodeling has shown me this merger and its growth potential as a real estate industry.
I call it "three-dimensional real estate". This means considering cost and location by adding surrounding factors and the diversity of specific products to the formula. 3D real estate attracts selected parts from the public realm to the private realm, creating a vibrant residential community that not only enhances the tenant experience (paywall) but also enhances the value of the property itself. In addition, and more importantly, it differentiates residential products in an increasingly crowded market.
Experience Is Paramount
In the hotel industry, Ian Schrager (Ian Schrager) took the lead by introducing an older concept: "boutique hotel" decades ago. It allows hospitality and transforms the hotel into an ideal social destination, even if people do not spend the night at the hotel. Like Schrager's boutique hotel, a now ubiquitous term, boutique real estate startups are collaborating with well-known brands and personalized services to deliver 3D experiences in the context of residential living. Residential buildings offering experience-oriented lifestyles may include resident lounges, bars and/or restaurants, gyms with select programs, barrier-free terraces, all-weather cafes, local coffee shops, unique interior design concepts, etc.
Finding Your Crowd
Singles, families, and older people want different things from their living environment. Ultimately, 3D real estate can be developed to meet specific social demographics. The residents of Gen Z 3D can look a bit like a university, with a gym in the center and a dark, lively bar. On the other hand, family-oriented 3D homes may have arcade rooms or children's play areas, movie theaters, and even nurseries. The retirement community? Salons, game rooms, etc., can be integrated into architectural design and business cooperation. The beauty of 3D houses is that there is a lot of modularity, many products can be updated and changed depending on the program, for example, tenants in commercial plots or multipurpose rooms like theaters.
Building In 3D
In the next five years, I think the industry can expect the selected living environment (3D residential real estate development) to be popular in a market with high levels of employment and significant population growth. Think of Austin, Denver, Miami, Atlanta, Nashville, etc. When people integrate consumption trends, characteristic facilities, and target communities into these buildings, people can expect to create considerable value and obtain a return on investment. In addition, 3D real estate can emerge from new buildings or re-used spaces. In both cases, developers should look for the following:
Existing common areas to generate revenue. In most cases, large common areas or less desirable retail spaces in existing buildings can be converted into tenant amenities. At this point, ideally the building would have an integrated food and beverage element easily accessible from its residential areas.
Dead space to monetize. A key element of boutique housing is that it monetizes dead space. For example, if you have a large hall, consider bringing a coffee bar. An unused basement? Add a bowling alley.
Efficient unit layouts. In a fully integrated boutique residential asset, tenants will be satisfied with smaller than typical unit sizes because the building and its amenities serve as an extension of their living room.
Incorporate at least 150 units with at least 20,000 square feet of common space. The ideal development or redevelopment of existing properties includes at least 150 residential units with at least 20,000 square feet of common or retail space that can be used as amenities by tenants.
The ideal development or redevelopment of existing properties includes at least 150 residential units with at least 20,000 square feet of common or retail space that can be used as amenities by tenants. market demand. It is therefore essential for developers to understand this elusive but important third aspect of residential real estate: the experience of the environment and the vibe right outside the front door of the tenanted property.
Follow us on:
FB: Ken Couture Realty Your Home Sold Guaranteed
Twitter: Ken Couture
Pinterest: Ken Couture
LinkedIn: Ken Couture Your Home Sold Guaranteed
Contact us at: