Residential Advertising Campaigns - Performance Metrics, part 1
Of the five marketing campaigns for new luxury residential developments in Manhattan that were previously identified, four were successful, while one was not, based on available evidence. To determine the success of each, I looked at a variety of metrics, including press coverage, sales and rental volume, sales price, and interest in the property. You'll find a deep dive of my research below.
1. One West End
This marketing campaign has won multiple awards, including the Gold Stevie Award for Real Estate, and the NAHB Sales and Marketing Silver Award. Moreover, the marketing campaign resulted in 100 of the property's 246 units earning signed contracts in the first 60 days of the building's opening, with 50% of the units under contract in less than seven months. In addition, the marketing campaign created brand recognition among its target audience, developed brand awareness in the marketplace, and resulted in 1,000 sales appointments in the first seven months.
The jury is still out on whether or not this marketing campaign was a success, with sales for the building's 34 units just beginning in March of last year. This article, published in October, explains that there is little evidence of success since the property's opening. There have only been 13 total sales of the building's 33 units on Street Easy, and industry experts report that there is "very little buzz" around the property. Sotheby's, however, which manages the property, says that there is buzz around the property and that units are actively selling. If there is a lack of success around the building, industry experts blame the record-breaking prices of some of the units, the location, the original interiors, and even the "intial marketing". On the plus side, this property received an incredible amount of media coverage. This could just be due to the historic and famous nature of the building and the record-breaking prices, however, and may not actually be indicative of success.
This property, known as the Whitney Condos, launched sales in 2014, although the property didn't officially open until 2015. Despite the high prices at the property, some notable units have already sold. In 2016, someone paid $31 million for a penthouse in the building. In addition, a condo that is part of the property's Atterbury Mansion sold for $45 million in 2015, even though it was unfinished. In 2016, another buyer paid $57.5 million for two units in the development. Clearly, units in this building are selling, and for a premium price, which indicates successful marketing.
4. The Sutton
Sales for this building launched in April of 2015. According to Street Easy data, there have been 79 sales and 27 rentals of the building's 113 units since then, indicating considerable success.
Sales for this building launched in 2015, with prices starting at $2 million. Since then, there have been 45 sales of the building's 58 units, as well as 87 rentals, according to Street Easy. Based on that data, the development has been a huge success.
To wrap up, of the five marketing campaigns for new luxury developments in Manhattan, four have been significant successes based on available data, while one was not successful based on all available evidence.