The Value of High-Performance Design in Residential Income Properties
Increasing the comfort and well-being of the tenants is one of the primary purposes of high-performance design in residential income properties. Through a combination of features and amenities during the design and construction stages, a developer can add enormous value to their commercial development projects.
So how exactly does high-performance design add value to residential properties? In this article, we will discuss how each group of people are affected by the design of the building and how high-performance can increase your brand image and project opportunities.
This is the fourth article in our ongoing series about high-performance commercial development projects. In this series, we will cover such topics as: the components and benefits of high-performance design, the effects that high-performance design has on your development organization, and the effects that it has on the final product. If you have found this article of use, you may like to take a look at the rest of the series.
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The tenants are going to be spending the most time out of anyone in the product, so their satisfaction is integral to the success of the project. If the tenants are satisfied, then this makes the building more profitable to the property owner, which in turns raises the value of the building. The more desirability that is added to the building, the higher its value and rent capabilities become.
A few ways that tenant satisfaction is increased with high-performance design:
- Increased comfort through features like natural light and indoor air quality
- Increased safety through integrated security systems
- Efficient systems that require little maintenance
Lower rate of vacancy
Tenant satisfaction is also directly tied to the value of the project through a lower rate of vacancy. If the building meets and surpasses the demographic-driven expectations, then it will have a high rate of occupancy and run at peak performance. More tenants mean more rent for the property owner.
A developer’s goal should be to create a building that it actively sought after, and there is no better way to do this than to add perceived value to the structure from the point of view of the future tenants, or in other words, by incorporating high-performance strategies.
Higher resale value
From the point of view of the property owner, a high-performance building is more valuable than a traditional structure for a number of reasons. The first of these is directly tied to the building’s lifespan. High-performance buildings are more durable, last longer, and run at a higher rate of efficiency through their building system lifecycles.
Having a product that will last longer than others is a massive selling point for a development organization. As a developer, you can say that your project will perform with lower maintenance costs and a higher rate of income than any other, for a longer period of time, and that the property assest will retain its value if the property owner ever wants to sell. In other words, the building is a safe and profitable investment for any buyer.
To compliment the last point, a high-performance building is market ready and easy to sell. Structures that have incorporated these designs are high-quality and highly competitive in the marketplace, meaning that they are sought after not only by tenants, but by potential property owners as well.