Amenities: key ingredients or icing on the cake: does the clubroom need a chef's kitchen or just the basics? is a rooftop pool better than an onsite masseuse? three reits weigh in on the amenities residents crave.

Amenities are no longer just the icing on the cake--they're a key ingredient in the property marketing mix. But a "must have" in one market can be a "who cares" in another. So property management companies choose the amenities they offer based on experience, understanding of local housing markets, and a clear profile of the individuals they aim to attract.

Karen Kossow, Assistant Vice President of Sales and Marketing for KSI Management, said, "Our portfolio [of 34 properties] includes affordable, mid-range and upscale. Because rent consumes a significant portion of any family's monthly income, we've found that even at the 'affordable' level, residents expect certain amenities."

Of course, that list of amenities operates on a sliding scale. On the affordable housing end, it most likely consists of a swimming pool, fitness room and clubroom. But there's a burgeoning demand, especially at this level, Kossow said, for business centers, where residents can access the Internet, create and print documents, send and receive faxes and make copies.

The big news in amenities, however, is at the loftiest levels. Management firms are thinking outside the box when it comes to facilities, decor and services.

From Standard to Sublime

Fitness facilities, pool, clubroom and Internet access are standard amenities. So shouldn't developers of luxury housing plug those in and move on to more imaginative or exotic amenities? Not necessarily. With traditional amenities, experts agree that it's all about the tweak--of design, size and potential for socializing.

Take fitness centers, for example. The average fitness room in an affordable housing community consists of a smaller, re-purposed space with a few bikes or treadmills and maybe some weights. Peggy Butterworth, Executive Vice President of Operations for AMLI Residential, said, "Our A-level fitness centers have become bigger, with more sophisticated equipment. In one of our communities, for example, we transformed what had been a racquetball court into a two-story fitness center."

Residents of one AvalonBay community enjoy a 6,500-square-foot fitness room, although Dirk Herrman, Chief Marketing Officer for AvalonBay, also sees such facilities as opportunities to meet people.

"AvalonBay's tag line is 'Time Well Spent,'" he said. "Amenities are all about spaces and services that increase the quality of residents' lives."

Regarding trendiness in amenities, Kossow said, "Most amenities don't fall out of fashion. When they're not used, it's because they're poorly designed. Our top-level fitness centers are well-stocked with high-end equipment, including a climbing wall."

A personal trainer is available for an hourly fee, eliminating the need for health club memberships. "Some of the trainers even plan outdoor excursions for residents," Kossow said.

So Many Choices

Developers can choose from a sparkling array of new twists on luxury amenities and services. Interestingly, though, industry leaders don't necessarily agree on what's hot in similar locations and markets.

AMLI Residential Properties, a REIT with a portfolio of 30,000 A-level and above apartments, specializes in suburban garden-style communities in nine major markets, including Atlanta, Dallas, Austin and Chicago. For an average of $950 for 1,000 square feet, professionals who commute and home-based workers can select from units with three levels of finish and appliance packages, hardwood floors and lighting packages.

"We want our residents to feel as though their apartments are true homes that reflect their personalities. So instead of making each unit identical, we aim for a custom look," Butterworth said. "Some of our units are urban in design, with stained concrete floors, lighting and floor plans that evoke the flavor of loft apartments."

Residents of AMLI's luxury communities have access to cybercafes with free gourmet coffee; multi-purpose recreation rooms with billiards, wet bars and flat-screen TVs; and business centers and conference rooms.

"On the one hand, we're focused on cutting-edge technology, and on the other, resident networking," Butterworth said. "We call it keeping our residents 'connected and connected.'" Some of the newest technological amenities may include Wi-Fi throughout the community, fiat-screen TVs visible from the pool deck and expanded business centers. Business networking events enable even those who work from home to make new contacts in the business world.

Conveniences include arranging for utility hook-ups online, paying rent by automatic debit or online with a credit or debit card, and thoughtful services like dry cleaning pick-up and delivery. Value can be added, Butterworth said, by such simple touches as installing more outlets for people to work on their laptops in common areas of the community or extending the swimming season by heating the outdoor pool.

Suburban communities can offer some amenities that aren't feasible in urban settings. "Some of our properties feature ground-floor units with private yards," Butterworth said. "And pets are hotter than ever. Where there's space, we've created 'Pet Parks,' a fenced area where people can let their animals exercise and play."

KSI has charged into the upscale urban market with three high-rise communities in the Washington, D.C., area, and eight more are in the works. In Pentagon City, which nudges the nation's capital, the company recently completed a pair of high-rise communities on one site. These "Metropolitan" buildings are similar on the outside, with a sinuous footprint that tones down the high-rise feel. Unlike typical balconies, where everyone is facing the same way, the curves allow for balconies from which residents can actually converse with one another.

Inside, however, they have distinctly different personalities. "Pentagon Row is 'edgier,' while Pentagon City has a slightly more traditional feel," Kossow said. Despite these differences in flavor, they are both contemporary in design. The two communities boast occupancy rates of 97 percent to 98 percent

Metropolitan residents, who pay rent to the tune of $2.40 or more per square foot, can choose from 100 different floor plans, depending on their needs and what's available. High-end finishes include black granite countertops, upgraded black or stainless steel appliances and wood flooring. There's a penthouse apartment, too.

KSI has pulled out all the stops when it comes to amenities. The goodies include rooftop pools, movie theaters with big-screen TVs, and business centers with a corporate-style conference room (complete with white boards and media capabilities for presentations).

Related facilities are clustered to encourage sociability among residents with similar interests. Clubrooms are equipped with kitchens, bars and panoramic views. "One of our upcoming projects will even feature a full chef's kitchen," Kossow said. Add to that billiards tables, a library, a cybercafe with Internet access and free coffee.

The company recently teamed up with a company called VIPdesk to provide "virtual" concierge service to KSI communities. VIPdesk can be accessed by phone or Internet from anywhere in the world. Services will include dining recommendations and reservations, transportation reservations, purchase of event tickets, assistance with gift purchases, scheduling household services and much more.

Since the Metropolitan properties are urban, parking space is limited. But who needs a car? KSI makes a centrally located parking space available for a community car, which is provided by Flex Car, an independent car-sharing service. The car can be reserved for short blocks of time, and participating residents pay a rental fee directly to Flex Car.

"Our goal is to provide a lifestyle for our residents with amenities that eliminate other outside sources. And our focus is on providing the services that go with those amenities," Kossow said.

AvalonBay's Herrman takes a somewhat different approach to amenities at the REIT's 145 communities. "Business centers and fancy screening rooms are not as widely used as one might think. What with the affordability of laptops and printers, and the introduction of flat-screen TVs, our customers are bringing these amenities into their apartments.

Instead, we are focusing on our customers' total living experience--again, that concept of 'Time Well Spent.'"

That living experience may include dry saunas, steam rooms, the aforementioned behemoth of a fitness center and heated pools. Playrooms for children encourage parents to mix. Elaborate outdoor pool and barbeque areas are popular, as well. Resident lounges are separated from the leasing office lounges so residents can relax and get to know each other away from the office hubbub.

Herrman believes that concierge services are "underutilized and complicated to deliver." In his experience, he said, urban residents value a doorman for security and small services like hailing a cab and accepting packages.

Location Is an Amenity

"I consider location itself to be an amenity," Herrman said. "Our communities are near work, transportation, entertainment and restaurants." Finding prime locations in major cities isn't easy. "AvalonBay concentrates on developing communities in high-barrier-to-entry markets where there is high demand and little product."

The REIT looks for parcels that are available but difficult to develop for various reasons, including the need for a zoning change or environmental cleanup. "It may take three years just to get the land. Some of our communities were in development for 10 years," Herrman said. "Our tenacity in 'contentious markets' (such as East and West Coast urban areas) really pays off."

KSI's Metropolitan site in Pentagon City is an urban infill project. "We have been fortunate to acquire some of the best urban sites in the D.C. metro area," Kossow said.

Most new urban high-rises, regardless of who develops them, are mixed-use buildings. It's a return to the traditional urban configuration of street-level retail with apartments above. Urban planners believe that mixed-use spaces foster the growth of distinct neighborhoods and encourage residents to feel like true stakeholders in the local community. It's comforting to know that a Starbucks double latte is just an elevator ride away.

Integral or Icing?

Does a doorman trump a concierge? Is a resident's social life driven by the apartment community? Does the clubroom need a chef's kitchen or just the basics? Is a rooftop pool better than an onsite masseuse? Would residents choose a pet park or a place to park their cars?

Maybe amenities really are the icing on the cake after all. But whatever residents' preferences, one thing is certain: They get what they pay for.

Janice Myers is a freelance writer, living in Albuquerque, N.M. Photos courtesy of AvalonBay, AMLI Residential and KSI Management.