One of the biggest challenges that face the new construction condo market is the construction that leans heavily on brand names. We explore in our articles the value of hospitality brand names against non-hospitality brands and the perceived against ‘true’ economic value to consumers in the resale market! If you consider the hospitality brands such as Four Seasons, Ritz Carlton, or St Regis you should consider that historically hospitality brands outperform non-hospitality brands by 134%!
On the other hand, we have studied non-hospitality branded Condos across Miami and have found that historically there has been an upsell on the ‘brands’ name, which once the product hit the resale market did not translate. In short, the unit values dropped against an unsubstantiated product that had no bearing on the true benefit. No amount of slick marketing is going to make up for poor floor plans and mismanaged service. Brand misdirection has happened in the past. It can and will likely happen again!
These two articles might be interesting to read. Although it mentions mostly Miami examples it is accurate for West Palm Beach as well.
Branded Miami Luxury Condos – Brand or Bust?
The Ultimate Ranking of Miami Luxury Condos
