The Meaning Of Amenity In Real Estate
An amenity is any feature or benefit that improves the value or usability of a property. They are a key part of the product offering landlords and developers use to differentiate themselves in the marketplace and/or respond to demand.
Classic examples of amenities include parking, air conditioning or other property features that attract owners and occupiers and in turn increase the value of the property.
How Amenities Are Determined
Amenities are a key component of how properties differentiate themselves in the marketplace. As part of a market analysis, the amenities of comparable properties should be analyzed to determine their affect on rental rates and property value.
Amenities offered depend on the property type and needs of its occupant. They are a feature that provides a benefit that has value in the marketplace. For a residential tenant, a swimming pool would be a nice amenity that they value and will pay for. An office tenant may prefer or expect zoned air conditioning or extended building hours in the market they are looking for space in.
Changing Demand For Amenities Over Time
As lifestyles and markets change, the amenities building owners offer evolve in response to demand. Building owners may respond to demand by offering amenities such as wireless internet, common areas for people to gather, or charging systems for electric vehicles.
Social values have impacted trends and amenities offered in commercial buildings. Greater awareness of the environment as well as greater consciousness of personal and professional health and well-being have impacted the amenities offered by commercial and residential property owners and investors. Green building practices and workplace wellness are examples of forces driving resulting trends in property amenities.