Do Amenities Really Impact the Bottom Line?

Irvine, CA

Developers keep upping the ante on amenities, but does the race to build the best and most impressive features really impact the bottom line? Or, rather, do amenities produce higher rents and stronger occupancy? The question applies across asset classes, as almost all owners are participating in the amenity race. For those doing it right, however, the answer is a resounding yes. Amenities create an overall more successful asset.

“Inherently, these attention-grabbing attractions deliver an immediate increase in guest numbers and in their length of stay, which in a retail environment has been proven to increase sales,” Barry Caylor, VP of business development at design-build construction firm OTL, tells GlobeSt.com. “Retail REIT Macerich, for example, conducts ongoing annual studies that point to fountains as key elements in increasing sales by as much as $25 more per visit.”