Why this plan should matter to investors

Issues like winterizing the building may not seem like an intuitive choice for an investor, but I promise it impacts your bottom line a number of ways as the development begins next door. 

If I were an investor who relies on rental income, I’d have two concerns – first, who wants to rent next to a noisy multi-year construction site? And when that’s done – who wants to pay so much to live in Shore Towers when there are now so many newer choices nearby? Both could potentially depress rental rates once construction starts.

First, we need to increase the customer’s perceived value to maintain a competitive edge in terms of rents. We need to have amenities and building services that keep Shore Towers as attractive as possible while the development chaos unfolds next door, disturbing the neighborhood on a grand scale for several years. 

More importantly, with 2,400 units and the stunning views afforded by the new buildings, we will have fierce competition to attract the rental dollars this building used to take for granted. These new buildings already announced generous amenities, including rooftop pools and state-of-the-art gyms.

But amenities aren't the only value; so is savings on energy. We are already known for being a cold building with high heating bills, and our competition will be much more efficient. You can bet they will use us as a yardstick to sell their development. "It may be more, but you will save hundreds a month on electric compared to Shore Towers" might be a successful pitch. 

Second, we need to do what we can to cut expenses wherever possible while also exploring other ways to generate building funds with our assets. Energy savings is just one example of managing and reducing known and expected expenses. This will make sure that the year apartments begin coming online next door, we have an additional cushion for expenses that we can anticipate, such as the bulkhead. If the market rate for rents gets depressed as a result of the new buildings, any new assessments would just add grief. 

The best of all possible worlds would be getting concessions from the developer or the city that completely offsets bulkhead repairs, while simultaneously improving our revenue through savings and new creative streams. Then we could consider projects that go beyond maintenance, and can use the funds to add value to this building rather than plugging holes. But this is just a pipe dream, with the reality that we will have to pay for part of it. But we should prepare for it now, while there is a chance to exploit any savings reated in the next two and half. 

Any competitive advantage that lets investors offer clients better services or better value should be addressed, reviewed, and done when feasible. Bottom line is bottom line. When a plan can both secure investors a wider margin, and decrease the residential owner’s burden over time – all while increasing services -- everyone wins.