Recently, Newmark Knight Frank studied the impact social and service amenities had on rent, lease-up, and sale price. According the study, “buildings with five or more social amenities sold for $31,867 per unit less than projects with four or fewer social amenities.”
The reasoning for the lower sales price is attributed to ongoing operating costs. The study also found that buildings with social amenities, tend to garner a higher selling price. Jon Banister states “tenants often do not pay extra fees for using a building's pool or gym as they would for a valet parking service, so the costs of social amenities go straight to the project's bottom line.”
Although the buildings sold for less, the social and service amenities did have a positive impact on rents as well as how quickly a property is leased up.
Read more about Newark Knight Frank’s Study on Bisnow: