Closets Are the New Luxury: Rethinking Storage in Luxury Living

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How Elevated Storage Design Enhances Resident Experience and Drives Retention in Premium Communities

In luxury communities, residents don’t just expect a nice unit—they expect a seamless lifestyle. And often, it’s the subtle details that shape their experience from the moment they step inside. One of the most overlooked elements? The closet.

Closet design may not be the flashiest amenity in your building, but it speaks volumes about quality, attention to detail, and long-term livability. And in a premium high-rise, that matters.

Closet Design as a Reflection of Property Quality

Closets are one of the first spaces residents open during move-in. If what they see is sagging wire, shaky brackets, or haphazard installs, it sets the wrong tone. Residents begin forming opinions about the rest of the unit—and your brand—before they’ve even unpacked.

Well-designed closet systems communicate care, craftsmanship, and consistency. They show that the property isn’t just beautiful on the surface, but thoughtfully built throughout.

Move-Ins, First Impressions, and White-Glove Living

In high-rise living, your team works hard to create a white-glove experience—from concierge service to curated amenities.

But if a resident opens their closet and sees a basic wire shelf wobbling under its own weight, it disrupts that feeling instantly.

Premium closet systems elevate the move-in experience. They feel clean, intentional, and effortless. No confusion about where to hang items. No last-minute maintenance requests. Just smooth, resident-first design that reflects the standard of service your team is known for.

The Link Between Storage, Satisfaction, and Retention

Closets play a quiet but powerful role in how residents feel about their homes. Lack of storage is one of the top unspoken frustrations in luxury units. Residents may not voice it—they may not even realize it—but they feel it every day.

More thoughtful storage means more control over their space. And when residents feel more at ease, they’re more likely to renew, refer friends, and engage positively with your team.

Small Upgrade, Big ROI

In the world of luxury interiors, closet upgrades are one of the most cost-effective ways to improve both perception and performance. While other finishes might steal the spotlight, closet systems impact daily routines—which means they impact satisfaction in a very real way.

They also reduce maintenance requests, speed up turns, and keep your property looking polished long after the initial lease-up.

The Bottom Shelf

Luxury renters expect more—and they notice when something feels like an afterthought. By upgrading closets, you’re not just giving them a better place to hang their clothes. You’re giving them a better reason to stay.

Because in luxury living, every detail matters. Even the closet.

 

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What Today’s Renters Actually Want: Functionality Over Flash

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How Practical Design Choices Are Shaping the Future of Multifamily Living

For years, multifamily developments have competed to offer the most eye-catching amenities—rooftop pools, coworking lounges, state-of-the-art gyms. But the reality? Residents spend far more time inside their apartments than in these shared spaces. Today’s renters are looking beyond the glitz, prioritizing functionality, convenience, and livability. And in a market where vacancy rates are rising and new supply is flooding the market, developers who recognize this shift will be the ones who come out ahead.

One of the biggest deal-breakers for modern renters? Storage. It’s an essential yet frequently overlooked aspect of apartment design. According to Greystar’s 2024 Design Survey, a walk-in closet is the #1 most desired apartment feature, with 88% of renters calling it a must-have. Yet many new developments are still treating storage as an afterthought. Instead of making room for practical, high-quality storage, developers focus on flashy finishes that do little to improve daily life. The demand for built-in organization, adjusta

Logic Closet by Spatia Designs

ble shelving, and multi-use storage solutions is higher than ever—and renters will pay more for units that meet this need.

Beyond storage, flexibility is becoming a defining factor in apartment design. More than a quarter of renters cite a lack of space as the primary reason they move. As remote and hybrid work models persist, renters are looking for homes that adapt to their evolving lifestyles. Smart layouts with built-in desks, sliding partitions, and customizable shelving allow apartments to function as home offices, exercise spaces, and relaxation areas—all without requiring additional square footage. These subtle but thoughtful upgrades increase lease appeal, improve resident retention, and drive higher NOI—a win-win for developers and tenants alike.

While technology continues to shape the industry, renters are getting smarter about what tech actually improves their experience. While 82% of renters want at least one smart home feature, not all innovations are welcome. Keyless entry, smart thermostats, and energy-efficient lighting remain top requests, but renters are less enthusiastic about overly complex or gimmicky smart home integrations. Meanwhile, AI-driven leasing and maintenance management are becoming industry standards, but property managers must find a balance—residents still value human responsiveness, and too much automation can negatively impact the experience. The key is integrating tech that enhances convenience without overcomplicating daily life.

With all these changes, one surprising trend is emerging: residents care less about shared amenities than they do about in-unit conveniences. While large-scale developments still emphasize coworking spaces, high-end gyms, and rooftop lounges, renters are more focused on their daily living experience. In-unit laundry, pet-friendly features, and well-designed kitchens with ample storage are becoming more influential in leasing decisions than oversized kitchen islands or high-end designer finishes.

And then there’s sustainability. Nearly 70% of renters now say sustainability influences their housing choices. Green-certified buildings, energy-efficient lighting, water-saving fixtures, and eco-friendly materials are not just selling points; they’re fast becoming expectations. And beyond resident demand, these investments reduce long-term operating costs, making them financially smart for developers as well.

A Luxe Walk-in Closet by Spatia Designs

So what’s the point? Multifamily developers need to rethink what truly drives leasing decisions. It’s not just about offering the most luxurious rooftop pool or a state-of-the-art gym—it’s about creating spaces that work for real life. Renters want apartments that function better, store more, and adapt to their needs. Developers who embrace this shift will be the ones who reduce vacancy, increase NOI, and build communities where residents actually want to stay.

 

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Beyond Rent Hikes: How Small Upgrades Unlock NOI Growth

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Small But Mighty… And Cost Effective

 

When property owners think about boosting Net Operating Income (NOI), the first instinct is often raising rents. While rent increases can certainly drive revenue, they aren’t always the best or most sustainable option—especially in today’s market, where renters are more selective and value-driven than ever.

But what if there was a way to increase NOI without increasing rent?

Small, strategic upgrades to apartment interiors can drive higher retention, justify premium pricing, and improve operational efficiency—all without the risk of pricing out potential residents.

The Hidden ROI of Small Upgrades

Residents don’t just sign leases based on flashy amenities—they sign (and renew) based on how functional, comfortable, and livable their space is. According to the 2024 Greystar Design Survey:

📊 88% of renters say a walk-in closet is a must-have.

📊 63% of renters would pay more for improved storage solutions. $50-$75 More per month!

📊 Well-designed interiors can increase renewal rates by up to 10% (J Turner Research).

The connection is simple: Residents who love their living space are more likely to stay.

Every move-out costs an owner $4,000 on average between marketing, make-ready costs, vacancy loss, and staff time. Even a 1% increase in retention can add thousands to NOI annually—far more than a rent hike alone.

What Kind of Upgrades Actually Move the Needle?

Not all upgrades are created equal. The key is investing in enhancements that improve daily life while keeping costs manageable.

 

Logic Closet By Spatia Designs

Here are some high-impact, low-cost upgrades that drive NOI growth:

✔ Closet Systems That Maximize Space – Walk-in and reach-in closets are top resident priorities, and a well-designed storage system can add real value to any unit and your property as a whole.

✔ Modern Lighting Fixtures – Upgrading from outdated fixtures to LED lighting improves energy efficiency and creates a more premium aesthetic.

✔ Smart Thermostats & Keyless Entry – While smart tech isn’t for everyone, practical tools like thermostats that save on energy costs or keyless entry for seamless access are widely valued.

✔ Bathroom & Kitchen Fixtures – Swapping out old faucets and cabinet hardware for modern alternatives instantly elevates a unit without major renovations.

The NOI Equation: Small Changes, Big Returns

Instead of focusing only on rent hikes, multifamily owners should ask:

💡 How can I increase NOI by enhancing what residents already use every day?

🔹 1% retention increase = $250,000 annual savings on a 1,000-unit portfolio.

🔹 Faster lease-ups = Less downtime and fewer costly vacancies.

🔹 Lower maintenance costs = Upgrading durable, functional features leads to fewer work orders and reduced staff workload.

Small upgrades create real, measurable NOI improvements—and unlike rent hikes, they benefit both residents and owners.

Invest in the Details, Reap the Rewards

In a market where supply is rising and renters have more choices, the competitive edge goes to properties that prioritize livability and long-term value.

A small investment in practical, high-impact upgrades can pay off far more than simply raising rent—in higher retention, reduced turnover costs, and stronger NOI growth.

Ready to upgrade your closets? Get 40% off your first order—exclusively for our newsletter subscribers. [Click here to claim your discount!]

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The Hidden Costs of Turnover: Why It’s Eating Away at Your NOI

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Turnover is often treated as a routine expense in multifamily operations, but its impact on NOI (Net Operating Income) is anything but ordinary. With the average unit turnover cost exceeding $5,000, the financial implications can quickly eat away at NOI like a late-night craving for turnovers devours your diet plan.

In 2025, focusing on retention and tackling turnover head-on isn’t just a strategy—it’s a necessity.

Let’s “Turnover” the Numbers
Turnover costs are staggering. Let’s break it down for a typical 250-unit property:

  • Rent: $1,253/month
  • Days vacant: 39
  • Unpaid balance at move-out: $415
  • Vacant utility cost: $135
  • Unit turn cost: $2,075
  • CAC (marketing, concessions, screening, etc.): $856

Total per unit: $5,109

For a property with a 50% turnover rate (116 units/year), this translates to an annual turnover cost of $592,644.

The takeaway? Turnover is one of the most significant threats to profitability, but it’s also an area where small changes can yield big results.

Why Turnover is So Expensive
Turnover isn’t just about the time and money spent getting a unit ready for a new resident. It impacts every layer of your NOI:

  1. Vacant Days
    Every day a unit sits empty is lost revenue. With an average vacancy period of 39 days, properties are bleeding cash while waiting for new leases.
  2. Marketing Costs
    Filling empty units requires marketing dollars, leasing staff time, and often concessions to entice renters.
  3. Operational Strain
    Maintenance teams are stretched thin with unit turns, delaying responsiveness to existing residents—a vicious cycle that can drive further turnover.

Small Adjustments, Big Gains
The good news? You don’t have to overhaul your operations to make an impact. Incremental improvements can significantly boost NOI.

  • Reduce Turnover Rates:
    Cutting turnover from 50% to 45% could add $61,308 in NOI annually.
  • Shorten Vacant Days:
    Reducing vacancy periods from 39 days to 35 days could generate $16,790 in additional NOI.
  • Lower Unpaid Balances:
    A 25% reduction in unpaid balances adds $10,400 to NOI.
  • Streamline Unit Turn Costs:
    Trimming unit turn costs by 20% results in an extra $48,140 in NOI.

These seemingly small changes can snowball into significant financial gains.

The Role of Resident Retention
At its core, reducing turnover comes down to retention. Properties that prioritize resident satisfaction are reaping the rewards:

  • Faster maintenance response times build trust and loyalty.
  • Thoughtful amenities, like well-designed closet systems, enhance daily living.
  • Transparent communication ensures residents feel valued and heard.

Retention isn’t just about keeping residents happy—it’s about keeping your NOI intact.

The Final Turn
As you plan for 2025, ask yourself:

  • How can you make retention a priority?
  • Where can you tighten up your turnover processes?

Turnover isn’t just a cost of doing business—it’s an opportunity to do better. By focusing on the metrics that matter, you can protect your NOI, improve resident satisfaction, and position your property for long-term success.

Want to learn more about how thoughtful upgrades, like Spatia Designs’ closet systems, can help you reduce turnover? DM us on LinkedIn & check out our Gallery to see our LOGIC and LUXE closet systems!

Ready to upgrade your closets? Get 40% off your first order—exclusively for our newsletter subscribers. [Click here to claim your discount!]

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How Declining Interest Rates Impact the Multi-Family Industry

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How Declining Interest Rates Impact the Multi-Family Industry

As interest rates start to come down, the multi-family housing industry is poised to experience a variety of shifts. Lower rates affect everything from property financing to tenant dynamics, making this change especially relevant for property developers, owners, and managers alike. Here’s a closer look at what decreasing interest rates could mean for the multi-family sector.

1. Easier Access to Financing and Development

One of the biggest advantages of lower interest rates is reduced borrowing costs. When financing is more affordable, developers can take on new multi-family projects with less financial strain. This means we might see a wave of new developments, from luxury apartments to affordable housing complexes, as lower rates make construction loans more appealing.

In addition, current property owners looking to upgrade or expand their existing units can now more easily access financing, which can be a boost to property values and the appeal of multi-family developments.

2. Increased Investor Interest

Multi-family properties are often viewed as stable, recession-resistant investments, and lower interest rates only enhance that appeal. With borrowing costs down, the yield on multi-family properties becomes even more attractive compared to other investments, like stocks or single-family homes. This can lead to increased competition among investors and potentially drive property values up in desirable markets.

3. Potential for Rent Stabilization

As more multi-family projects enter the market due to lower borrowing costs, we could see increased competition among property owners. A higher supply of units typically stabilizes or even lowers rents in certain areas, providing relief for tenants. However, this effect might be limited to areas with significant new development, while markets with high demand and limited supply might still experience rent increases.

4. Opportunity for Property Upgrades and Renovations

Existing multi-family properties stand to benefit from lower rates through refinancing. Many property owners may choose to refinance their loans, freeing up capital that can be reinvested in property improvements, energy efficiency upgrades, or the addition of popular amenities. This reinvestment not only increases tenant satisfaction and retention but can also drive higher rents, adding long-term value to the property.

5. Impact on Tenant Dynamics

Lower interest rates could make homeownership more accessible for some tenants, prompting higher turnover in multi-family properties as renters move into homes of their own. While this trend could create challenges for property managers, it also presents an opportunity to target new tenants, particularly those who value flexibility, amenities, and community over homeownership.

Final Thoughts

The decrease in interest rates creates a mix of opportunities and challenges for the multi-family housing industry. Developers, property owners, and managers alike can benefit from lower financing costs and increased investment, but they’ll also need to navigate potential shifts in tenant behavior and rental competition. In the end, staying adaptable to these changes will be key to maximizing the benefits of a lower interest rate environment in multi-family housing.

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Sustainability Meets Multifamily

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Embracing Sustainability in Multi-Family Housing: A Path to Long-Term Value

As environmental awareness continues to grow, sustainability in multi-family housing has become more than just a trend—it’s a necessity. Sustainable practices not only reduce the environmental impact of developments but also add significant value to properties, enhancing tenant satisfaction and reducing operational costs. Here are some key areas where sustainability makes an impact in multi-family housing:

1. Energy Efficiency

Energy-efficient upgrades, such as LED lighting, energy-efficient HVAC systems, and smart thermostats, can significantly lower utility costs while reducing a property’s carbon footprint. Tenants are increasingly looking for eco-friendly buildings, so energy efficiency can be a powerful draw for new residents.

2. Water Conservation

Water-saving fixtures, low-flow toilets, and efficient irrigation systems contribute to substantial water savings. In areas facing water scarcity, these upgrades are essential for both the environment and tenant satisfaction.

3. Sustainable Materials

Using eco-friendly building materials, like recycled or sustainably-sourced wood, reduces the environmental impact of construction. Durable materials also lower maintenance costs and extend the life of a property, further enhancing its value.

4. Waste Reduction and Recycling

Waste reduction programs and accessible recycling facilities are essential for eco-conscious tenants. Implementing these practices can improve a building’s appeal and reduce landfill waste, contributing to a healthier environment.

Final Thoughts

Sustainability in multi-family housing is more than a green initiative—it’s a smart business strategy. By embracing sustainable practices, property managers and developers can reduce costs, attract environmentally-conscious tenants, and make a positive impact.

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Maximizing NOI in Multifamily

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Maximizing NOI in Multi-Family Housing: Key Strategies for Success

In the multi-family housing industry, Net Operating Income (NOI) is a critical measure of a property’s profitability. NOI represents the difference between total income and operating expenses, excluding taxes, mortgage payments, and capital expenditures. For property managers and developers, increasing NOI is essential for enhancing property value and attracting investment. Here are some effective strategies to boost NOI in multi-family housing:

1. Optimize Rent Pricing

Regularly reviewing rent rates in your area can help ensure your units are competitively priced while maximizing revenue. Implementing lease renewal incentives or gradually raising rents can help optimize income without causing tenant turnover.

2. Reduce Operating Expenses

From energy-efficient lighting and appliances to routine maintenance strategies, minimizing operating expenses is key to increasing NOI. Consider upgrading fixtures, utilizing smart thermostats, or implementing preventative maintenance to save on costly repairs and utility expenses.

3. Improve Tenant Retention

High tenant turnover directly impacts NOI due to the costs associated with unit turnover, marketing, and vacancy periods. Providing excellent customer service, maintaining updated amenities, and addressing tenant concerns promptly can greatly improve retention rates.

4. Invest in Smart Storage Solutions

Innovative storage solutions, such as customizable closet systems, not only reduce maintenance costs over time but also increase tenant satisfaction, as tenants value functional and organized spaces. Durable, low-maintenance closet systems can attract tenants and keep them longer, reducing turnover expenses.

Final Thoughts

NOI isn’t just a metric; it’s a roadmap for success in multi-family property management. By focusing on effective strategies to increase revenue and reduce costs, multi-family properties can significantly improve profitability and create long-term value.

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