How World-Class Design Increases Real Estate ROI and Property Value

Blima E (00:00)

Sometimes people look at the last layer as what they can see, but as a developer, when you own a property and there is an issue within the foundations, and I’m seeing the foundation, but it could be in any part of the…

Process then covering it up is not always the solution and I always like to tell our clients that quality is key because If you’re finding something at a lower price then that’s great and we’re all for that.

Scott Bursey (02:09)

I’m your host Scott Bursey. We’re here today to talk about turning properties from basic boxes into beautiful high value assets. Our guest, Blima, Ehrentreu of the Designers Group, Inc. is here to deliver that high octane fuel on how world class design is your ultimate competitive advantage in real estate investment. Get ready to stop guessing and start designing for maximum profit. Blima.

Welcome to the show.

Blima E (02:35)

Thank you so much, Scott. I’m so excited to be here and talk more with you.

Scott Bursey (02:41)

It is just wonderful having you here. And for our listeners who may not be familiar with your journey, please tell us, how did your career begin? And what is your main focus now?

Blima E (02:51)

So for those of you don’t know, I am an interior designer and the designers group is an interior design firm that is focused on making a difference with the spaces that we design. We’re always looking for projects and opportunities where we can create environments that better the lives of the people experiencing them. So we’re across many different industries. We’re in the healthcare space, senior living space,

hospitality and multifamily spaces as well as office and for us it’s all about creating those environments that really allow people to excel and promote healing or productivity or whatever is the focus for that space.

I got my intro into the construction industry when I was still a child and my parents moved my family across the street from the home that I had grown up in into a house across the street while they demolished and rebuilt my childhood home. So as a family, we were able to watch that entire process and it fascinated me.

So that was when I knew that I wanted to get into the construction space and being a naturally artistic person, a career in design felt like that perfect synergy between the two. And it’s been an incredible journey. I went to school, got a master’s in interior architecture and design. And the designer’s group was born in Toronto and we now have another three studios. So we’re in Toronto, New York, Miami.

as well as LA and it’s just been incredible seeing the impact of our work and being able to continue to make people’s environments and in essence their lives better.

Scott Bursey (05:40)

really caught my attention about you was the way you’ve been able to consistently deliver luxurious high impact design that doesn’t just look good, but drastically increases the ROI for real estate investors.

Blima E (05:52)

I’m happy that you were able to see that because that’s definitely something that we’re very mindful of when we’re working on a property because our clients are all owners, operators, and developers. So for them, ROI is really the most important. If we cannot keep their budgets and we cannot deliver a product that will sustain itself throughout the lifetime of the project,

then our work will not have accomplished its purpose. And we’re all about designing with purpose to create a better world. And for our clients, that purpose could be renting out a building, leasing up an office, selling a space. So we have to be very mindful of that. And it’s the first aspect that…

we take into account when we start a project.

Scott Bursey (06:51)

Now let’s get into the structure that builds serious value. In your eyes, what is the core design strength that ensures a project always adds value for real estate investors?

Blima E (07:03)

We always look at what the purpose of the space is. So when we’re looking at an office, that is to promote the brand, but not only promote the brand to potential clients, but also to the staff. And we want to ensure that the employees will be engaged.

They’ll be able to speak to who and what the ethos of the company is. So we’re looking at that from the get-go. When we’re looking at a senior living community, we’re looking at how to engage the seniors, how to promote their rehabilitation if that’s what they need. We want to promote social interaction because studies have shown that loneliness is such a big part of why people deteriorate so fast at the

of their life when they don’t have company. So there’s so many aspects within the different sectors that we’re working on that we look at and that we’ve studied and that our team has experience with of how we can add value with design to the spaces that will ultimately bring ROI for the entire team.

Scott Bursey (08:20)

That focus on long-term value is key because market trends come and go, but good designs last.

Blima E (08:28)

Yes, definitely. And we always say we want a space when we’re designing it for inclusivity and for as many people as possible to feel a part of it, that we want the anchoring parts of the design to be more neutral, but accessories or finishes that can be changed out easily, that’s where we can really

Go crazy, I like to call it. But that’s where we can get creative and be more innovative. But in spaces that we’re looking at for long-term value and we are, the budgets aren’t that high, but our clients still want to deliver that luxurious feel, we try to toe the line between something that’s trending and between something that will be long lasting.

Scott Bursey (09:21)

From your lens, Blima, what common budget constraint comprises the final investor outcome most frequently?

Blima E (09:28)

When we’re talking design, so much of the final design that people can see are the finishes.

We come in at the start of a project where we’re working on the layouts and the optimal way for the function of the space to be. So that really starts at the beginning, but we can come in at any point. But what I always find is that

A lot of the time when it comes to the finishes, that’s when the budget of a project starts running out when you’re talking about a ground up or a larger scale project. So we want to ensure that our designs are able to get to the finish line. We want

our spaces to get executed properly. So we make sure to really understand our clients’ budget at the start of the project so we’re aligned when it comes to delivering that final product. And we want to ensure that it gets built and it gets built in the best way possible. So there’s a lot of collaboration that’s needed and my team is incredible at that. They really listen and hear

what our clients are saying sometimes without them even verbalizing it, but understanding what’s at the core of the mission of their property and how we can best maximize it and deliver that to them.

Scott Bursey (11:29)

Wow, so true, Blima. Trying to save a dollar in those visible high touch areas usually costs you far more in the final valuation.

Blima E (11:39)

Definitely. And it’s not even about cutting those corners. Sometimes there really are budgetary constraints that come up, whether it’s in structural issues that came up or mechanical or I mean, the list goes on and on. Anyone in construction understands that, but we’re here to work through that with them.

so that the final product is nothing short of amazing and the interiors will still offer that experience to the people that will be using it, whether or not there are budgetary cuts that have come up.

Scott Bursey (12:18)

I love how you frame that. Curious what single overlooked design element is a huge opportunity for adding value right now through your unique lens.

Blima E (12:29)

We always do ⁓ an onboarding call with our clients to get an understanding of what they’re looking for. And then between our teams, since I mentioned we’re in different sectors, we like to bounce ideas off between departments because sometimes…

an idea that we’re using in a hospitality space could really be that thing that sets apart a healthcare facility. Or when we’re working on an office, bringing in residential aspects allow the team to connect to the space more or to the brand more. So really understanding what…

this space is used for, but then thinking outside the box and being innovative with the approach. So I believe that every space could be maximized, but as well, every vision. And it’s our job to stretch what our clients can see and bring ideas that challenge them to think differently, to differentiate their…

unique proposition that they are bringing to market.

Scott Bursey (13:44)

That’s some fantastic points. Thank you for that great breakdown, Blima. And if you could walk us through what shift in buyer preference is the biggest threat to outdated designs.

Blima E (13:59)

Never look at any emerging technology as a threat. I actually think it challenges us to think bigger and better.

I would say the idea that people see imagery online and believe that

they can do that or they can have it can sometimes be a challenge, but it pushes us to challenge what we believed was possible and to show our expertise and why or why not some of the imagery that people are seeing is not always possible.

Scott Bursey (15:18)

Great point there. Blima, it’s time to rev up the engines. What material or finish always signals high end quality to a buyer or renter?

Blima E (15:27)

designers were all about the natural environment and to me you cannot compare a natural stone to a porcelain copy or to a laminate that looks like wood. However, I will say that there are so many sustainable options that are coming to market that do look pretty good.

And for us, durability is key. We’re working on a lot of public spaces. are

Like I mentioned, our clients are typically owners, operators and developers, which means that they want the space to last. They want it to always look good, no matter the high traffic that could be within the space. And so we’re always looking for durability. That is key. And of course, because the environment means so much to us, we want to ensure that the materials that we’re using are not only sustainable as a product, but the process to create

them is also sustainable.

Scott Bursey (16:35)

That’s a huge distinction right there. And you’ve worked on countless high value projects. If you could give the most important advice for a real estate pro looking to maximize their portfolio value, what is the design philosophy that they must implement today to ensure overall success?

Blima E (16:53)

Sometimes people look at the last layer as what they can see, but as a developer, when you own a property and there is an issue within the foundations, and I’m seeing the foundation, but it could be in any part of the…

Process then covering it up is not always the solution and I always like to tell our clients that quality is key because If you’re finding something at a lower price then that’s great and we’re all for

We want the property to be as financially

stable as possible and if there is a cheaper option let’s go with it. However, quality cannot be compromised because we see that there might be a lower investment but

I always say working with the right team and investing from the beginning to ensure that the vision is there, that there’s a clear narrative for what the property is and how to develop it. And as well throughout the process, cutting corners when it comes to development usually

does not end well. I’d love to say like it can, but we have seen time and time again that just doing things properly, bringing in the right consultants and the right visionaries is what will set your property apart and will allow it to be as beautiful but also function optimally by

believing in that initial investment and actually executing on it.

Scott Bursey (18:44)

You’ve given us so much value Is there any other golden nuggets that you could leave our listeners today about your specific? niche

Blima E (18:52)

So like I said, we’re all about creating those environments to give people better experiences. And for anyone in this industry, I believe that…

That same premise applies. We want to give people better lives. We want to give people better opportunities. And how best can we do that then by giving them the best environments to accomplish that? So anyone who is in the industry, whether retail, office, multifamily, hospitality, just think about

what the space is supposed to accomplish and how best you can do that. And always putting ourself in those shoes and thinking about it in that way, I believe that’s the best way to do it, but also to speak to people actually who are in those spaces to really understand it and leveraging the expertise of experts, there’s nothing like it.

Scott Bursey (19:55)

Our always consult a design professional like Blima before you finalize your acquisition and renovation budget. They can spot value adds and costly risks you might miss. Blima, thank you so much for being so, so informative today for our listeners. And before we sign off, I know our pros are going to want to connect with you. For those of our listeners that would like to follow your journey or collaborate with you, what is the best way for them to reach you?

Blima E (20:21)

The firm is The Designers Group. So we are on all platforms as www.thedesignersgroup.com, on Instagram, Facebook, LinkedIn, it’s all The Designers Group. And we’d love to help add value to whatever property your listeners have. And if there’s any way that we could help in that way, we would really love to.

Scott Bursey (20:47)

Thank you so much for joining us here today, Blima.

Blima E (20:50)

Thank you. Thank you for having me.

Scott Bursey (20:51)

And to our listeners, we appreciate each and every one of you. If you got value from today’s episode, please subscribe. We have a lineup of exceptional guests, just like Blima, who are making huge moves in the market. Until next time, keep your standards high and your vision clear. We’ll see you in the next episode, everyone.