Part III: Branded Residences X Build To Rent
How branded residences trail-blazed a global opportunity for Build To Rent to make our homes the ultimate immersive brand experience.
‘Author’ Kings Cross, the 67-acre estate’s first and only BTR scheme launching later this year will no doubt be aimed at - and hugely popular with - people working at companies on the estate including Google, Meta, Sony Music Entertainment UK, Universal Music and more. Image: Related Argent.
When branded residences evolved from hotel-branded villas in remote and exotic locations, to high density towers in urban city centres, the concept definition evolved simultaneously and began to enter mainstream consciousness.
In a parallel evolution, Build To Rent (BTR) matured from being perceived as a kind of ‘big sister’ to student housing, into the more sophisticated, lifestyle-enhancing homes they are today, catering to a wide range of demographics.
Aside from the ongoing debate about finding a consumer-friendly replacement for the ‘BTR’ industry jargon - something Australia is now grappling with (and will hopefully solve!) as the sector grows there - the important thing, is that the customer understands the concept clearly in order to enter and progress confidently through the sales journey.
Once a new concept stabilises and is understood in the marketplace, the opportunity arises to begin iterating.
Sure, branded residences and BTR are entirely different financial and ownership models, but frankly, this is a detail for developers and funders. From the customer’s perspective, it’s housing. In all its various forms and guises, it’s just housing.
And right now, with branded residences catering almost exclusively to the luxury end of the market, there’s an enormous number of people - customers – who are excluded from experiencing its benefits.
Side-by-side, a branded residences scheme and a BTR scheme are both:
Housing products purposefully designed and built for a specific customer profile, ownership model and end use
Operated under a management agreement for the ongoing marketing, sales, customer relations, services and operations
Leveraging brand recognition and reputation to attract and retain customers and reach sales/letting targets to secure their investment
The similarities do not end there, and nor do the opportunities.
Branded residences and BTR compete in their respective markets on many of the same elements:
Extensive resident amenity
Concierge and bespoke service offerings
Aspirational lifestyle experience
Prime and connected locations
Brand value proposition
Product differentiation
Customer retention
Outside of the property industry, both concepts may still have some work to do yet before they are household names, but the hard work is being done and being done very well.
Several years ago, I worked on one of London’s first BTR schemes. A few years and a few projects later, construction was nearing completion and the projects were gearing up to launch to the market. An enormous amount of work was required to define and articulate the BTR concept, together with project and operator brand value propositions and messaging. Not only was this necessary for the end user, but at the time, also for the industry. In addition, schemes were constantly striving for brand and product differentiation as the market became more and more crowded.
The point is, established brands can cut right through this with a recognisable proposition and an established customer base of brand advocates.
It has already proven successful for branded residences, so why not BTR?
Let’s say Soho House offered long-term accommodation under a BTR model, which, from the customer’s perspective is just rental accommodation - never mind who owns it. If I’m a Soho House club member, hotel guest or just a fan who buys the brand’s products and services, then just as it might be a no-brainer to choose a Soho House venue for dinner with friends, or hotel in a foreign city, I would surely also shortlist the brand in my search for long-term rental accommodation, with an understanding of what I could expect in terms of design, quality and service. This could be particularly true if I was moving from say, London to Los Angeles and needed to find my feet – and my tribe - fast.
Or, BTR by Nike? I’m thinking rooftop running track, state-of-the-art fitness centre and outdoor amenity. I could live in a space that was designed "To bring inspiration and innovation to every athlete in the world.” And like they famously did with the running shoe, Nike could push the limits of convention and create a product better than anything else on the market.
What would my choice say about me - about my interests and my values? Equally, what does it suggest about the neighbours and friends I am hoping to meet?
It’s often said that renting misses a ‘sense of ownership’. I would argue the opposite – if I can choose a rented product that is aligned with my personal values, the consumer choices I make and the lifestyle I aspire to lead, I can’t imagine a greater sense of ownership for the place I call home.
For brands seeking to win new audiences, reach new demographics, and nurture a new community of brand ambassadors, the idea presents an exciting opportunity.
Just as retail brands now approach their physical stores as an opportunity to create a brand experience, the ultimate immersive brand experience can be found right at home.
Until next time!
Caitlin
projectsofplace.com
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