The Hidden Influence of Storage on Property Value

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Why giving residents more closet space could be your smartest capital investment.

When developers look to increase the value of their multifamily properties, the focus often falls on flashy amenities—rooftop lounges, resort-style pools, or smart locks with mobile access.

But the secret to long-term value creation might be tucked away in a space you’re overlooking: the closet.

More Storage = More Value

In Greystar’s 2024 Design Survey, 88% of renters said they want more closet space—making it one of the top amenities driving leasing decisions across all regions and asset classes.

That stat isn’t just about personal preference. It reflects a growing need as renters downsize, consolidate, and seek better organization in their homes. And properties that deliver on this are seeing tangible results—faster lease-ups, higher retention, and even increases in asset value.

Why? Because closet space isn’t just an amenity—it’s functionality. And functionality drives satisfaction. And satisfaction drives NOI.

Logic Closet by Spatia Designs

Closet Design as a Value-Add Strategy

When closet systems are thoughtfully designed—and flexible enough to meet real resident needs—they do more than store belongings. They:

•Reduce turnover by improving day-to-day livability

•Support higher rents by creating perceived (and actual) value

•Boost property value through low-cost, high-impact upgrades

Appraisers take functionality and design into account. So while a walk-in closet may not be its own line item, a modern, well-organized unit stands out in comps—especially when prospective renters are willing to pay more to live there.

Logic Closet by Spatia Designs

The Spatia Designs Difference

At Spatia, we help developers turn this insight into action.

Our adjustable closet systems give you a simple, scalable way to enhance livability without breaking budget. You don’t need to redesign floorplans—you just need to rethink the value of the space you already have.

In Closing

When evaluating your next investment or renovation project, consider this:

✅ Pools and gyms get attention.

✅ Closet space wins renewals.

✅ And small, smart upgrades inside the unit can have a major impact on your bottom line.

 

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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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