When Pretty Meets Practical: How Interior Design Can Meet Tenants’ Needs

The U.S. multifamily market is expecting an influx of housing in 2024. In January, Yardi Matrix predicted that 540,000 units would be completed this year, with an additional 460,000 units expected in 2025.

To keep up with the housing demand, developers need to deliver new assets faster than ever while also creating communities that resonate with potential renters who have become increasingly discerning in their preferences. They should also consider how to stay competitive knowing renters will have more options than ever before, without blowing their pro forma during development. 

One solution is to work with an interior design firm that understands how to save both time and money without sacrificing quality. According to Melissa Banko, founder and principal of Georgia-based interior design firm Banko Design, developers need to work with design partners that are innovating both in their aesthetics and in the way they develop efficient processes to help get buildings to market quickly.

“Interior design is much more than a topical application or afterthought. It’s truly integral, especially in 2024,” Banko said. “Good design should focus on programming first and foremost and then layer in the aesthetic piece. Owners need someone who deeply understands their target market, demographic and timeline to help program, design and deliver appropriately, while exceeding expectations for renters.”

Banko Design is an integrated firm that provides decorative materials procurement; furniture, fixtures and equipment procurement; and branding identity services in addition to the award-winning interior design that put the firm on the map for multifamily, senior living and boutique hospitality clients. 

Banko Design takes what it calls a “resimercial” approach to design, which merges the functionality of commercial spaces with the warmth and comfort of a residence. 

“Commercial buildings can perform the way they should without feeling corporate or institutional, like a hospital or bank,” Banko said. “The spaces should look inviting through the delicate layering and subtle details found in residential design, while functioning the way the CRE owners need them to so that the building continues to perform well even in high-traffic areas.”

She said that when bringing design to life, it’s crucial to consider how multifamily residents will engage with the space.

“The things that residents touch are the most important things that we design,” she said. “Whether potential residents interact with cabinetry, countertops or hardware, or are sitting on the chairs, we are diligent about making that the best experience they’ve had and coming up with a unique story for that particular property.”

For Banko Design, part of being a turnkey design firm means having procurement in-house. Banko Design gets aligned with owners at the very beginning of the project on budget and then works within that budget throughout the design process.

She said Banko Design has its own procurement agents who help with ordering, tracking and warehousing all of its goods and are on hand to communicate with clients easily without the hassle of going back and forth with multiple emails.

“We have great purchasing power across our portfolio but have never lost our boutique level of service, which is why so much of our work comes from repeat clients,” Banko said.

Additionally, as the firm owns its own warehouse and performs installation, it can be more transparent about what those fees will look like throughout the duration of the project to ensure that clients can get what they need at their budget. 

“We’re the ones placing all furniture and accessories, hanging drapery and putting art on the walls, and not outsourcing any of those tasks,” Banko said. “We’re saving time and money for our clients because we spec it, buy it, track it, store it and install it.”

She said that since Banko Design works with large commercial spaces that require a lot of furniture, the team always considers how to distribute the project’s spending budget to create some outstanding moments while also ensuring the space looks finished. This can be especially challenging in the environment of rising materials costs and long lead times.

She said that ultimately, it’s essential for CRE investors to know that spaces can be built efficiently without compromising on design or the needs of the program. The design partner needs to be innovating alongside investors to carry out their vision.

“As interior designers, we should not only be your design partner but also your real estate partner,” Banko said. “If we don’t design properly and the space is struggling to sell, we’re not being a great partner to our developer clients and their investors. We help our clients bring their projects to life and do it in a way where everyone is happy, we are being fiscally responsible and the work is done efficiently.” 

This article was produced in collaboration between Banko Design and Studio B. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to [email protected].