According to Garrett Faller, project manager at developer Pierside,
“The amenities are the selling point”.
Also referred to as “the amenity rush”, residential, multifamily developers are competing to offer the 2018 target consumer with the highest quality and quantity of amenities at the lowest price. These amenities may include some or all of the following: a business conference room, a state-of-the-art community kitchen, a sky lounge, a rooftop deck, a dog run, a yoga studio, a saltwater pool, and the list goes on.
This allocation of space toward the inclusion of top-notch amenities comes at a price for the developer and the renter. The luxury apartments, which have been said to resemble a 4-star hotel, exceed the average apartment rent within San Diego County by nearly $1,000 per month. The average rent is expected to be approximately $2,489, with the cheapest option being a 500 square foot studio, starting at no less than $2,000 per month. With high demand, higher rents, and a continual influx of new, enhanced amenities, all transactional parties, the developer, the landlord, and the amenity-seeking renter, are expected to benefit from these luxury developments in one way or another.
So whom exactly do developers define as their target consumer? Who is responsible for this sudden surge in demand for luxury amenities, which in turn will lead to the addition of 2,000 luxury apartments across San Diego County by 2019?
The affluent millennial.
Despite the allocation of valuable square footage toward the construction of vast amenities (rather than the building of additional units), developers report that these superfluous facilities are in fact paying off. In comparing their various rental options, the affluent millennial has been found to place a higher value on what is included in the amenities rather than what is included in the living space. And what’s most important for developers, they are willing to pay more for it.
While the majority of new, luxury apartment complexes have been zoned for the few undeveloped sectors of Little Italy and East Village, North County neighborhoods, such as Oceanside and Carlsbad, can also expect to see an increase in these types of luxury apartment developments.
Click here to read the full article by the San Diego Union Tribune.