Radical Shift in Amenities Demand Amid COVID-19

In recent years demand for amenity hubs in apartment communities has skyrocketed. Now property managers and developers are scrambling to find both short and long term solutions to shifts, as many of these amenities are either closed, or limited in usability.

Gym's, pet care centers and rooftop terraces are among the hardest hit.

Pet care and gyms have seen the largest drop-offs. Many gyms remain temporarily closed, or require masks. Many pet care centers are requiring scheduled usage times and have limited hours.

Playgrounds have made a complete 180. Previously considered one the least desirable amenities, they have seen the second highest rent added growth second to fireplaces.

It is important to note that some of these changes can be attributed to class A properties seeing significant rent drops in recent months. Trends seem to favor older vintage, class C amenities, while newer vintage, class A amenities are hardest hit.

Property managers are getting creative with their amenity space. Online shopping reached $63 billion in the month of August according to Adobe analytics, a 42% increase since this time last year.

Some apartment communities have gone as far as converting gyms into temporary storage facilities to accommodate increased online shopping and package pileup.

Developers High Street Residential and Texas based Presidium are considering a different route. Both groups have announced that with increased work from home demand, they will be including office nooks in future multifamily development.

In Presidium's case, future developments will include desks in all units, as well as larger business centers. The decision hinges on the belief that offices will continue to favor work from home conditions as we come out of the global pandemic.

Closure of gyms and business centers are expected to be short term problems that will subside once we move past COVID-19. The addition of office nooks however, will have a lasting impact on the apartments world. Expect to see a generation of new construction including these features.