Beauty is as Beauty Does

Curb appeal. Most of us have sold a house in our life time and know full well the importance of appearance from street level. After all, a home purchase is largely an emotional one. So what about commercial real estate? How important is appearance in a decision process driven largely by bottom line considerations?

Mark Heschmeyer, writing in the CoStar newsletter, tackled these questions in his article titled Beauty is as Beauty Does- But When it Comes to Buildings, Does Beauty Outperform? I invite you to read the article and think about some examples we drive by on a regular basis.

Perhaps the most significant locally if not, I might suggest, globally is the ABC Headquarters building and Hendricks Development’s Iron Works development in Beloit. Frankly, both are world class and set a high bar for commercial real estate. If you are looking for a new construction project that speaks curb appeal take a drive west on Highway 14 and take a look at Jeff Fox’s new development, The Fox Den.

There are lots of buildings that fit the bill, i.e. Prent Corporation in Janesville and Regal Beloit Corporation in Beloit, but how do you rate beauty to the bottom line? My anecdotal evidence gathered over 10-plus years in the business is that attractive properties well maintained stay leased or lease a heck of a lot quicker than those on the other end of the spectrum. My best example is Carol Campbell and her late husband Terry’s real estate in Janesville. Attractive office buildings with a mix of retail - always well maintained and generally leased up. Even during this downturn, the properties weathered it pretty well.

Is it location, location, location? Or is it location, location, and beauty? Let me know your thoughts.