Tuesday March 11, 2025
Luxury condominium buildings are upscale residences defined by premium amenities, high-quality finishes, spacious layouts, and prime locations. Designed for comfort and exclusivity, they cater to discerning residents, offering a modern lifestyle and strong investment potential. This article will explore what constitutes a luxury apartment, what sets these properties apart, the importance of benchmarking for luxury high-rises, and unique insights from industry experts.Learn from Susan Ward-Freeman, president for FirstService Residential's Texas region about how stakeholders can use benchmarking to maintain their building's prestige and elevate their communities.
What sets luxury high-rise condos apart?
Luxury high-rises differentiate themselves through elevated standards in every aspect, from architecture to service. Below are key elements that make these properties unique.Amenities that impress
Luxury high-rise condos offer amenities that go far beyond the basics. Ward-Freeman emphasizes that the resident experience begins "from the moment you drive into the garage. What does the entrance look like? What's the building's scent? Is the space clean and inviting?"Amenities such as guest suites, wine lockers, state-of-the-art gyms, and even craft rooms add significant value. However, the "little things" and attention to detail are just as important. Harris points out the growing focus on outdoor activity spaces, with pickleball courts emerging as a rising trend. Staying attuned to new trends is vital for developing and delivering a true luxury experience.
While premium amenities remain a hallmark, our 2025 High-Rise BENCHMARK report data shows a strategic shift towards amenities that also support operational efficiency. For instance, investing in high-tech package management systems is no longer just a convenience, since it is now a necessity for managing the high volume of deliveries common in luxury buildings. Likewise, sustainable features like EV charging stations and energy-efficient systems are becoming standard, driven by both resident demand and the need to control rising utility costs, which now account for up to 23% of budgets in markets like Las Vegas.
Exceptional service for residents
What truly sets luxury residences apart is the level of service. Ward-Freeman explains:"Invisible service is key. It's about being present and ready to serve without being intrusive."From white-glove concierge training to proficient facility managers, the human element creates a memorable resident experience.
Susan Ward-Freeman, President for FirstService Residential's Texas region
Tailored management excellence
Thinking outside the box to address community-specific challenges is a hallmark of luxury property management. Package delivery, for example, is a major operational challenge. Harris shared a striking example of a Dallas high-rise managing over 100,000 packages a year. This building converted a garage space into a sophisticated package management system, transforming a common issue into a "private mailing facility" for residents. "Now you go in there, and it's this logistical heaven for storing perishables," says Harris, illustrating how innovative solutions elevate the resident experience.Preventative maintenance and reserve planning
Preventative maintenance is pivotal in preserving a building's high standards. Ward-Freeman states:"Preventative maintenance directly impacts the life of your equipment and when it needs to be repaired or replaced."Modern high-rises increasingly use live platforms for tracking and updating reserve studies, helping properties remain in excellent condition.
Susan Ward-Freeman, President for FirstService Residential's Texas region
The 2025 High-Rise BENCHMARK report underscores the critical role of robust financial planning. Proactive reserve funding has become a top priority for luxury boards. Data shows significant allocations to reserves in key markets: 28% in the DC Metro, 20% in California, and 19% in Chicago. This trend reflects a move to protect property values and review that funds are available for future capital improvements without levying large special assessments on residents.
Why you should benchmark your building
Luxury high-rises are communities offering premium living standards. But how do these properties measure success and provide long-term value? The answer lies in benchmarking. By comparing operations, amenities, and financial planning to similar properties, stakeholders can make informed decisions that elevate their luxury condominium buildings.What is budget benchmarking?
Budget benchmarking is the process of comparing your building's performance against similar properties or industry standards to identify areas for improvement. For luxury high-rises, evaluating the budget for operations, amenities, services, and financial planning against other properties of the same caliber is crucial.Four reasons budget benchmarking is key for luxury high-rises
Benchmarking is critical for several reasons:- You can better understand market position: Stakeholders often wonder where their property stands. Benchmarking provides clarity by comparing financial data, amenities, and operational efficiency against direct competitors.
- It promotes financial well-being:
"Boards should ask what the competition is doing, because if your neighbor charges $1 per square foot and you're charging $0.48, you've got to ask why."
Benchmarking allows for strategic decisions to adjust assessments, manage budgets, and maintain financial health.
Susan Ward-Freeman, President for FirstService Residential's Texas region
- It can bring forth information for capital improvements: Benchmarking allows boards to decide what the future of their building should look like and plan accordingly. This includes incorporating trending amenities like cold plunge pools or upgraded package management systems.
- It allows your building to set a standard and stay competitive: With resident expectations constantly evolving, benchmarking helps luxury high-rises remain attractive. Comparing amenities and service levels helps the property offer a leading-edge experience.
Three insights from industry experts
- Educate stakeholders: Both Ward-Freeman and Harris agree on the importance of education. Ward-Freeman emphasizes presenting meaningful data through town halls, explaining:
"Understanding reserve funding is a lightbulb moment for residents. When they see they're only 2 percent funded, the urgency becomes clear."
Susan Ward-Freeman, President for FirstService Residential's Texas region - Practice strategic financial planning: Harris notes the importance of an investment strategy for reserve funds.
"Associations often miss the opportunity to earn interest on reserves. Strategic investments can significantly support cash flow for future improvements."
Susan Ward-Freeman, President for FirstService Residential's Texas region - Adapt and welcome new trends: Ward-Freeman stresses staying ahead of trends, especially for developers.
"Developers need to ask if spaces are adaptable for future trends. For example, can a tennis court be converted into pickleball courts?"
Susan Ward-Freeman, President for FirstService Residential's Texas region
Get ahead with benchmarking
"We often get caught up in checking all the boxes, processes, and procedures, but at the end of the day, it’s the people we hire who truly deliver the memorable experiences. While processes and procedures are important, it’s the human touch—the exceptional service and solutions—that truly sets us apart and creates lasting impressions for our residents"The insights from experts like Susan Ward-Freeman help emphasize the value of budget benchmarking for creating sustainable and high-performing luxury buildings. Whether you are a property manager seeking to enhance operations or a developer preparing for future trends, benchmarking your budget strategies can guide critical decisions.
Susan Ward-Freeman, President for FirstService Residential's Texas region
By downloading FirstService Residential's BENCHMARK report, stakeholders gain insights on trends, averages, and best practices, offering a competitive edge. You can also watch the BENCHMARK launch panel discussion, where industry experts explored key findings from the report and shared insights on financial planning, evolving legislation, and resident expectations.
High-Rise BENCHMARK
High-rise living can offer a unique combination of luxurious amenities, prime locations, and modern conveniences that make it an appealing option for future residents. Although it can come with its own set of challenges, high-rises can be ideal homes for many.For board members in particular, managing a high-rise building can require a keen understanding of operational and budget strategies.
To help you navigate these complexities and stay ahead of industry trends, we invite you to download our 2025 High-Rise BENCHMARK report.
Watch the panel below to learn insights from top industry experts as they discuss findings from the latest High-Rise BENCHMARK report:
With rising resident expectations and increasing regulatory requirements, high-rise boards and councils need reliable data to guide budget decisions.
Our BENCHMARK report provides actionable insights on budgeting and strategic planning, featuring budget allocations from nearly 1,000 high-rises in major U.S. and Canadian cities, cost benchmarks for utilities, insurance, staffing, and amenities, strategies to generate revenue and manage rising costs, and guidance for developing your next budget and long-term strategic plans.
Click here to download your free 2025 High-Rise BENCHMARK report today.
To learn see insights from our 2024 High-Rise BENCHMARK report and panel click here.
Contact FirstService Residential, the high-rise management leader, to learn more about high-rise living.