Should the design of new developments be shaped by their ability to win awards? Or should property investors, developers and their architects focus on more than building design in new developments?
James Alexander-Hatziplis, co-founder and managing director of PLACE Studio, weighs in on the debate by saying ‘designing for yield’ is the most important element of design and development.
“Designing for yield, or increased income, should be the focus for owners and investors in every new property development, not just how it looks,” says Alexander-Hatziplis. “Design and yield are very much interdependent.”
Investors looking at a property to invest in should, therefore, ask more than just what the expected yield will be.
“Questions such as whether the building was designed with yield in mind are critical. What attributes does it have that will add additional yield? How will those elements protect the income if another property is developed next door?”
“Tenants of all types want more than four walls and a roof over their head,” he says. “You have to understand what motivates demand for premises in each area.”
Elements that can increase yield include good lighting, with natural light where possible; good internet and mobile phone reception in all parts of the building; spaces to bring people together, to network, create and socialise; or dedicated spaces such as a café, or areas for each prospective tenant, Alexander-Hatziplis suggests.
“Then there are the environmental and associated ESG considerations. Solar panels are must for most developments these days, along with battery storage. Can the roof of the development account for these? Will there be enough to power the project?”
On the other hand, elements that can reduce yield can include poor security, unconsidered arrangement of apartments, excessive hallways and lack of solar access.
Co-founder, Marie-Claire Alexander-Hatziplis says, “Another key design aspect for increasing yield is kerb appeal; is the building attractive from the street, the entrance – for visitors as well as employees working there? Or will the next one down the road be better?”
Ease of maintaining the property is another key ‘design for yield’ enhancer, and should be addressed from the initial stages of planning.
“There is much more to designing a building than simply looking good,” she adds.
“Of course it is great to win awards as well, but you have to cover off the fundamentals first; if our clients are creating more value with us then other architects then we will be considered for the next project,” Alexander-Hatziplis explains.
Image: Render of 14 storey Mixed Use Tower for Freedman Development Group in Woolloongabba, a booming Olympic suburb in Brisbane QLD / PLACE Studio
