As the number of units in Boston strains to meet the demand of those seeking to live and work in the city, an unprecedented number of buildings are currently under construction in and around Boston. Signs promising luxury living, stunning views, parking and open space are everywhere as some of the city’s most iconic skylines are undergoing facelifts.
Yet in the rush to create these new buildings and stay ahead of the competition, developers often make critical mistakes, resulting in an inappropriately positioned product, lack of absorption or consumer rejection. Among the most common:
Lack of appropriate market research prior to design. Size, price and frequency distribution are key elements of any development plan. In order to get those requirements exactly right, market research is essential. Data should include an historical analysis of what has sold, reflect on how the market has changed and forecast what today’s consumer requires. If a developer hires an architect without the benefit of this research, plans will be created for an impressive building, but will lack the maximum ROI.
Understanding the consumer. The “who” is just as important as the “what.” Each target market has nuances that are distinctive. For example, smaller kitchens are acceptable to Millennials while dining areas are a must for empty nesters. Understanding the specific lifestyle needs of the target market will help create the right product.
Designing from the “outside in.” What looks terrific from the outside can result in challenging floor plates, inappropriate glazing/window locations or troublesome infrastructure that can ruin interior layouts. Design the building, both inside and outside, in a synergistic process.
Lack of creativity. Forget the cookie-cutter approach to design – it simply doesn’t cut it in today’s market. People value uniqueness in their living spaces and to achieve it requires a fresh perspective. Get creative with walls – forget straight lines; give space to the unit that needs it, “borrowing” from one that doesn’t. Utilize uncommon materials, such as glass block or sliding glass screens, with window walls as large as possible and practical. Tighter master bedrooms offer built-in armoires where walk-in closets aren’t possible. Borrow concepts from Europe and Asia – they learned to live in smaller, more efficient spaces long before we did.
Poor layout. Units must be laid out with furniture included in the plan so that window sizes, treatments, moldings, closets and other considerations logically fit within the space. Does the foyer give you a sense of arrival upon opening the door? Does the kitchen open up to the living space? Is there room for a second bath in the small two-bedroom unit?
One size doesn’t fit all. Not all units are created equal, yet I’ve seen spaces where the same appliances and fixtures are installed regardless of square footage. Size matters, and people value every inch they have, whether it’s 300 square feet or 3,000. Rethink full-sized appliances in a studio where more living space, a closet or television are better options.
Low-quality finishes. Install the highest-quality finishes possible within the target price range. Assuming you have positioned the project appropriately, finishes create the value opportunity – it’s what the buyers “buy.” The “Big Three” – kitchens, baths and flooring – are the most important differentiators in the eye of consumers. Don’t skimp – they will notice.
Undervaluing the great outdoors. Never underestimate the value of outdoor space when planning your development. Even in smaller units, people demand outdoor space as part of their overall living experience. I’ve seen a $100,000 differential in the price of condominiums offering a deck or patio over those that don’t.
No planning in common traffic spaces. Common hallways, elevators banks and reception areas should not be an afterthought – they must be incorporated into the overall experience. Residents seek quality, spaciousness and graciousness. Hallways should not resemble runways or railroad cars, as no one wants to get that hotel vibe when coming home. Sufficient width, wall color changes, flooring alternatives, moldings, lighting and ceiling breaks all contribute to interest in these spaces.
Lack of amenities. When the market speaks, developers must rise to the challenge. Today’s multi-story buildings include an unprecedented suite of amenities, including club rooms, wine bars, gyms that rival most health clubs, pet spas, bike repair facilities, roof decks with fire pits, common gardens and other appealing features that strike an emotional chord.
With more units coming online than ever before in the city’s history, now is the time to get it right. The value of your building and the return on your investment depend upon it.
Sue Hawkes is president and CEO of The Collaborative Cos., a residential real estate marketing firm in downtown Boston.
