Pricing & Incentive Framework
Our strategic pricing model positions The Novus to capitalize on its unique 27-story high-rise format and premium amenities, with a multi-tiered approach based on floor level, view orientation, and unit features to maximize revenue potential in the Downtown Durham market.
Optimal Base Rent Positioning
Studios
$3.90
$3.60-$3.90/sq ft
550-650 sq ft
Places The Novus approximately 8-10% above One City Center but 15-18% above other Durham competitors, reflecting superior views, height advantage, and premium finishes.
One Bedrooms
$3.65
$3.30-$3.65/sq ft
750-950 sq ft
Establishes a 12-15% premium over Van Alen and 511 Faye to reflect The Novus's high-rise exclusivity, panoramic views, and superior amenity stratification across 27 floors.
Two Bedrooms
$3.45
$3.10-$3.45/sq ft
1,100-1,400 sq ft
Positioned at the premium tier of the Durham market, reflecting the significant value proposition of The Novus's unique high-rise format, with a 10-12% premium over One City Center for equivalent floorplans.
Pricing Strategy Highlights
Premium Positioning
Vertical Stratification
View-Based Premiums
Our unit pricing strategy positions The Novus at the premium tier in Downtown Durham's market, with strategic price differentials based on unit size, floor height, and view orientation to maximize revenue while maintaining competitive velocity.
Strategic Premium Allocation
Premium Allocations by Category
Strategic pricing differentials based on unit features and location
Downtown Skyline
$275-425
Premium per month for units with downtown skyline views, offering unparalleled cityscape vistas
Five Points District
$175-275
Premium per month for units overlooking the vibrant Five Points neighborhood
Corner Units
$200-450
Additional premium for corner units offering panoramic views and enhanced natural lighting
Floor Premium
$35-50
Per floor premium (increases for higher floors) reflecting elevated views and prestige
Larger Terrace
$75-125
Monthly premium for units with expanded outdoor living space
Kitchen Island
$50-100
Monthly premium for upgraded kitchen layout with center island
Dual Aspect
$75-100
Monthly premium for units with windows on multiple sides, providing enhanced natural light
Architectural Features
$50-75
Monthly premium for unique design elements such as exposed brick, vaulted ceilings, or accent walls
Finish Premiums
Tiered upgrade packages with associated premiums:
Premium Cabinet Package
$30-50/month
Upgraded cabinet fronts, soft-close drawers
Designer Lighting Package
$25-40/month
Upgraded pendants, under-cabinet lighting
Premium Flooring Package
$35-60/month
Upgraded hardwood or luxury vinyl throughout
Spa Bathroom Package
$40-70/month
Rainfall shower, glass enclosure, premium fixtures
Special Feature Premiums
Premium add-ons for distinctive unit features:
Built-in Office Nook
$50-75/month
Custom desk, shelving, task lighting
Wine Storage
$35-50/month
Temperature-controlled cabinet (18-24 bottles)
Smart Home Package
$45-65/month
Integrated lighting, thermostats, entry system
Custom Closet System
$40-60/month
Upgraded organization with specialty racks
Concession Structure Recommendations
Lease-Up Concessions
Opening to 60% Occupancy
Phase 1
0-30% occupied
On 13+ month leases (4-6 weeks for premium view units on floors 20-27)
Position as "Durham's Premier High-Rise Launch" with time-limited availability
Phase 2
31-45% occupied
On 13+ month leases (3-4 weeks for premium view units)
Adjust based on absorption velocity by floor band (floors 1-10, 11-19, 20-27)
Phase 3
46-60% occupied
On 13+ month leases (potentially eliminated for high-demand units)
Apply selectively to slower-moving unit types with focus on floor bands
Stabilization Concessions
60%+ Occupancy
Standard Offer
2 Weeks
Free on 13+ month leases for remaining inventory
Premium Units
Reduced
Minimize or eliminate concessions on high-demand units
Alternatives
Value-Add
Shift to non-rent incentives (technology packages, etc.)
Referral Programs
Resident Referral
$1,500 total
$750 to referrer, $750 to new resident
Duke Housing Partner
2 weeks free
Per successful placement
Real Estate Agent Commission
$1,500-2,000
Higher for premium view units (floors 20-27)
Research Triangle Tech Partner
Corporate Rate
Special pricing for partner company employees
Seasonal Specials
Duke Graduation
$750 gift card
For May-June move-ins
Year-End Bonus
+1 week free
For December move-ins
Innovation District
Tech Package
For March-April leases
Holiday Special
Free Storage
For November move-ins
Look & Lease Specials
Incentives for quick decision-making:
Same-Day Signing
$750 credit
For applications within 24h of tour
Application Fee
$0 fee
Waived for on-site applications
Security Deposit
50% off
For same-week decisions
Selection Priority
First choice
With same-day application
Value-Add Alternatives
Technology Package
Alternative to rent concessions:
- •Smart Home Upgrade: Complete package ($1,200 value) in lieu of 2 weeks free rent
- •Fiber Internet Credit: 6 months prepaid internet service ($600 value)
- •Home Office Bundle: Ergonomic desk setup and tech accessories ($800 value)
- •Entertainment Package: Smart TV and sound system installation ($950 value)
Parking Incentives
Structured parking incentives:
- •Complimentary Reserved Parking: 6 months free ($900 value) for premium units
- •EV Charging Priority: Guaranteed access to charging stations
- •Guest Parking Package: 10 complimentary guest parking passes per month
- •Valet Service Credit: $25 monthly credit for occasional valet service
Amenity Fee Credits
Alternative fee structure options:
- •Waived Amenity Fee: First year waived ($350 value) for early signers
- •Amenity+ Package: Premium access tier including guest suite privileges
- •Wellness Credit: $50 monthly credit toward fitness/spa services
- •Social Fund: $25 monthly credit toward community events and activities
Move-In Package
Convenience services for new residents:
- •White Glove Moving: Complimentary moving service ($1,200 value) with specialized high-rise logistics
- •Designer Consultation: 2-hour session with interior designer ($350 value)
- •Durham Welcome Package: Curated local products, Durham Performing Arts Center tickets, and restaurant gift cards ($350 value)
- •First Month Essentials: Stocked pantry and household basics ($200 value)
Renewal Strategy
Tiered Increases
Standard Tier: 4-6% increase
Basic renewal with no special qualifications
Preferred Tier: 3-4% increase
On-time payment history and good standing
Premium Tier: 2-3% increase
Long-term residents (13+ months) with excellent payment history
VIP Tier: 0-2% increase
Residents renewing for 24+ months with perfect payment history
Renewal Incentives
- •Unit Refresh: Carpet cleaning, paint touch-up, and fixture updates
- •Upgrade Credit: $500-750 credit toward unit upgrades for 18+ month renewals
- •Amenity Credit: 50% reduced amenity fee for renewal term
- •Parking Upgrade: Complimentary upgrade to reserved parking
Lease Term Options
- •9-Month Option: 8% premium over standard 12-month rate
- •12-Month Option: Standard renewal rate based on tier
- •18-Month Option: 2% discount from standard 12-month rate
- •24-Month Option: 4% discount from standard 12-month rate
Loyalty Benefits
- •Anniversary Gift: Annual recognition with local experience gift
- •Resident VIP Status: Priority maintenance, amenity reservations, and event access
- •Referral Bonus Increase: Enhanced referral bonus of $1,500 for long-term residents
- •Home Customization: Approved customization options for 2+ year residents
Competitive Pricing Matrix
Recommended pricing position relative to competitive set (expressed as % above/below)
| Property | Studios | 1 Bedrooms | 2 Bedrooms |
|---|---|---|---|
| One City Center | +8-10% | +10-12% | +10-12% |
| Van Alen | +12-15% | +12-15% | +14-16% |
| 511 Faye | +14-17% | +15-18% | +15-18% |
| Cortland Bull City | +18-22% | +16-20% | +18-22% |
This pricing and incentive framework provides The Novus with a premium positioning strategy that capitalizes on its unique high-rise format and 27-story height advantage in Downtown Durham. The vertical stratification approach maximizes revenue potential by floor band while ensuring competitive lease-up velocity for North Carolina's tallest residential tower.
Detailed Pricing & Incentive Strategy
Initial Leasing Rates
Base pricing for all unit types
Studios
Starting at $2,150/month
550-650 sq ft ($3.60-$3.90/sq ft)
One Bedrooms
Starting at $2,850/month
750-950 sq ft ($3.30-$3.65/sq ft)
Two Bedrooms
Starting at $3,800/month
1,100-1,400 sq ft ($3.10-$3.45/sq ft)
Premium pricing reflects The Novus's superior height, views, and luxury finishes compared to downtown competitors.
Short-Term Incentives
Initial lease-up promotions
Application Fee Waiver
$0 application fee ($50 value)
For all initial on-site applications
First Month Concessions
Up to 8 weeks free rent
For 12+ month leases signed during launch phase
Look & Lease Bonus
$750 rent credit for same-day signing
Limited-time promotion for decision makers
Incentives scaled by floor band and lease term length, with premium units (floors 20-27) receiving reduced concessions.
Resident Retention
Long-term loyalty incentives
Renewal Discounts
Tiered increases from 0-6%
Based on payment history and lease term
Referral Bonuses
Up to $1,500 for resident referrals
Split between referrer and new resident
Loyalty Benefits
Unit refresh and VIP amenity access
Anniversary gifts and priority maintenance
Comprehensive strategy designed to maximize resident satisfaction and minimize turnover in a competitive market.
Market Positioning Summary
The Novus's pricing strategy capitalizes on its unique position as Downtown Durham's premier 27-story high-rise, with a significant advantage in height, views, and luxury finishes compared to all competitors in the market.
The vertical stratification pricing model with floor-specific premiums creates a wide range of price points that maximize appeal to the target demographic of young professionals, executives, and empty nesters seeking luxury amenities and unmatched downtown views.