What is a luxury apartment?

What is a luxury apartment?

Luxury condominium buildings are upscale residences with premium amenities, high-quality finishes, spacious layouts, and prime locations. Designed for comfort and exclusivity, they cater to high-income residents, offering a modern lifestyle and strong investment potential. In this article, we’ll further explore what is a luxury apartment, what sets them apart, the importance of benchmarking for these luxury high-rises, the unique aspects of these properties, and insights shared by industry experts.

Learn more with Susan Ward-Freeman, president for FirstService Residential's Texas region high-rise, and Demarcus Harris, regional director of high-rise Dallas, on how stakeholders can use benchmarking to maintain their buildings prestige and continue elevating communities every day.
 

What sets luxury high-rise condos apart?

Luxury high-rises differentiate themselves through elevated standards in every aspect, from architecture to service. Below are some key elements that make these properties unique:
 

Amenities that impress

Luxury high-rise condos offer amenities beyond the basics. Ward-Freeman emphasized how 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 value. But the "little things" in every detail do as well. Additionally, Harris points out the growing focus on outdoor activity spaces with amenities like pickleball courts, which is a rising trend among residents. Paying attention to new trends can be helpful in fully developing and catering to that luxury experience for residents.
 

Exceptional service for residents

What sets luxury residences apart is the level of service offered by staff. Ward-Freeman explained, "Invisible service is key. It's about being present and ready to serve without being intrusive." From white-glove concierge training to well-trained facility managers, it's the human element that creates a memorable resident experience.
 

Tailored management excellence

Thinking outside the box but specific to your community can often bring implementations that help drive success. One aspect that high-rise condo buildings experience is package delivery to the lobbies, and with thousands of packages moving through these high-rises annually, package management has become a defining feature of luxury properties. Harris shared a striking example of a Dallas high-rise with over 100,000 packages a year, explaining how this building converted a garage, purchased it back from one of the homeowners, and turned it into a package management system— shifting from managing a common challenge to becoming its version of a "private mailing facility" right inside of the building. "So now you go in there, and it's this logistical heaven for storing perishables," says Harris, discussing how they further elevate the resident experience and simplify all aspects of property management.
 

Preventative maintenance and reserve planning

Preventative maintenance plays a pivotal role in preserving a building's standards. Ward-Freeman shared, "Preventative maintenance directly impacts the life of your equipment when it needs to be repaired or replaced." Modern high-rises use live platforms for tracking and updating reserve studies, helping properties remain in excellent condition.
 

Why you should benchmark your building

Luxury high-rises are more than just residential buildings—they are communities offering premium living standards, state-of-the-art amenities and a lifestyle that blends comfort with exclusivity. But how do these high-rises measure their success and provide residents with long-term value? The answer can lie in benchmarking. By comparing operations, amenities and financial planning to similar properties, stakeholders—from developers to property managers and owners—can make informed decisions that help further elevate their luxury high-rise condominium buildings.
 

What is budget benchmarking?

Budget benchmarking is comparing your building's performance against similar properties or industry standards to identify areas for improvement and best practices. 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 involves evaluating the performance of a building against similar properties to identify strengths, weaknesses and opportunities. For stakeholders of luxury high-rises, this process is critical for several reasons:

1. You can better understand market position: Stakeholders often wonder, "Where does our property stand compared to others?" Benchmarking can provide clarity by comparing financial data, amenities and operational efficiency.
    
2. It promotes financial well-being: Susan Ward-Freeman notes, "Boards should ask what the competition is doing— because if your neighbor charges $1 per square foot and you're charging $48, you've got to ask why." Through benchmarking, stakeholders can make strategic decisions to adjust assessments, manage budgets, and maintain financial health.
    
3. Can bring forth information for capital improvements: Demarcus Harris highlighted, "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.
    
4. Allows your building to set a standard and stay competitive: With evolving resident expectations, benchmarking helps luxury high-rise condos remain attractive to current and potential residents for years to come. Comparing amenities and service levels against competitors helps the property offer a leading-edge experience.

Three insights from industry experts

1. Educate stakeholders: Both Ward-Freeman and Harris agree that education is essential for stakeholders. Ward-Freeman highlighted the importance of presenting meaningful data to residents 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."
    
2. Practice strategic financial planning: Harris emphasized 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."
    
3. Adapt and welcome new trends: Ward-Freeman stressed staying ahead of trends, particularly for developers planning new projects. She explained, "Developers need to ask if spaces are adaptable for future trends. For example, can a tennis court be converted into pickleball courts?"
    
4. Leverage your resources: Benchmarking data helps stakeholders prepare for emerging resident expectations, whether that's integrating sustainable energy solutions or offering wellness initiatives like in-house personal trainers.

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."

Susan Ward-Freeman, president for FirstService Residential's Texas region high-rise

The insights and stories shared by experts Susan Ward-Freeman and Demarcus Harris help further emphasize the value of budget benchmarking for creating sustainable, financially-sound, and high-performing luxury buildings. Whether you're a property manager seeking to enhance operations or a developer striving to prepare for future trends, benchmarking your budget strategies can guide critical decisions.

By downloading FirstService Residential's BENCHMARK report, stakeholders gain insights on trends, averages and best practices—offering a competitive edge that can help their property remain a leader in the market. You can also watch the BENCHMARK launch panel discussion, moderated by CEO David Diestel, where industry experts, including Susan Ward-Freeman, explored key findings from the report and shared insights on financial planning, evolving legislation, and resident expectations.
 
 

BENCHMARK: High-rise

Luxury high-rise living can offer a unique combination of attractive amenities, prime locations, and modern conveniences, making it a desirable option for potential residents.

To help you navigate these complexities and stay ahead of industry trends, we invite you to download the BENCHMARK: High-rise guide.

With data compiled from communities in our managed portfolio of 3,800 high-rise buildings across major urban areas across North America, BENCHMARK helps community association boards, developers, property managers, and owners of high-rise properties make informed decisions about their operations and budget strategies.

Contact FirstService Residential, the high-rise management leader, to learn more about services offered for high-rise living.