The hotel-style services you can enjoy

As downsizing has given way to rightsizing, a new breed of homeowner is exercising their right to outsource. From dog walking to gift buying, personal drivers to private chefs, today’s concierge services have become so much more than the glorified parcel-minding amenities of yore. Time poor homeowners are increasingly seeing the value of bringing the hotel lifestyle home by happily handing over daily tasks — and the real estate industry is taking note.

The global concierge services market was valued at US$647.30 million in 2022, and is predicted to hit $1.1 billion by 2032 according to Allied Market Research data. While there are no comparable Australian-only statistics, anecdotal evidence suggests our local market is set to explode as stretched-thin professionals seek out additional at-home help.

Interested in more stories like this? Order your copy of Autumn 2024 Kanebridge Quarterly magazine here.

Concierge on call

Comprehensive concierge services are now a hot commodity in lavish new residential developments, especially those targeting “rightsizers” relocating from big family homes to lock-up-and-leave apartments. Once just a smiling face in the lobby of upmarket inner-city unit blocks, the role of a concierge in 2024 goes beyond simply signing for packages and surveilling security cameras.

The Landmark in Sydney’s Lower North Shore is a $1.4 billion development offering residents access to its Club 500. The exclusive club includes traditional aides such as house keeping, restaurant bookings and car washing, with additional high end helpers like chauffeurs, event managers, interior decorators and personal shoppers.

The music room in the Landmark on Sydney’s Lower North Shore is just one of several services available to residents.

On the riverfront in Melbourne’s Docklands precinct, Seafarers (a joint venture between Riverlee and 1 Hotels) is part five-star hotel, part residential development giving permanent residents the opportunity to cash in on the hospitality. Homeowners at the $550 million project set to open in late 2024 can tap into all the guest services of the luxury accommodation.

“Residents will benefit from a blend of the best hotel amenities with curated residential offerings, including organic pantry stocking, botanical and pet care, eco-conscious housekeeping, private chefs, in-room massages and access to the hotel’s event programming,” says Riverlee’s development director, David Lee. “The breadth of services on offer combines convenience, luxury, and responsibility into an unparalleled residential experience.”

Lee says Australian’s desire for concierge services is increasing as the needs of local luxury property buyers continue to evolve.

“As a developer, we saw a need to cater to this demand and provide residents with access to the services that allow them more time to enjoy life and experience luxury within the comfort of their homes,” he adds. “As we navigate the new norm post-pandemic, integrated services have become an enabler of a more balanced lifestyle, and we recognise that people are looking for a complete lifestyle upgrade, which begins in the home.”

A life of service

Evan Cannan, operations manager with building management company Lefand, has been a professional concierge for more than two decades, first in five star hotels and now in a residential setting. Lefand will provide building services at new residential development Akoya, a 55s project in Greenwich, Sydney.

“The types of services and facilities are becoming more high end, especially over the past five to 10 years, compared with the concierges we remember from the 1980s and 1990s,” Cannan says. “These additional services mean apartments are achieving a higher price point, but with that comes higher strata fees.

“However, most buyers are happy to pay for it because they’ve reached that stage of their lives when they appreciate it.

“These people have seen the benefits of having a concierge within their office space, or they’ve travelled the world and experienced luxury concierges in places like Dubai and Singapore.”

The Akoya development by Lefand will have a virutal driving range, complete with bar.

Although there was once a great divide between a hotel concierge and an apartment concierge, Cannan says the lines have now blurred.

“A great concierge needs to have a wealth of information at their fingertips. Without even looking having to look it up they should be able to know the best restaurants in the area, what events are on and where, and just be able to advise residents with personal requests.”

He says the job calls for plenty of patience and discretion.

“I’ve had no limit of extraordinary requests over the years including one lady who used to send me off with her ATM card to get large sums of money out for her, but sometimes it’s as ordinary as looking something up on Google Maps when you know they could have found the information themselves,” he says.

Moving forward, Cannan predicts concierge services will likely be shaped by client demand as apartment buildings become vertical villages.

“Just looking at what’s available within services around the world, I think there’s still a lot more to come to Australia,” he says. “A good concierge service is regularly having those discussions with residents about what they want and don’t want.”

Helping hand at home

Brand new apartment developments aren’t the only bricks and mortar getting the concierge treatment. Melbourne-based real estate agency Kay & Burton launched its in-house concierge service two years ago with a handful of offerings. What started as a service organising removalists and connecting homeowners with tradespeople has morphed into more than 100 preferred partners and associates.

Cath Stubbings, director of Kay & Burton’s concierge team, says due to overwhelming demand for a suite of lifestyle requirements, the team has grown exponentially.

“It started with us wanting to service our clients with their property-related needs. As a result of finding trades for them we naturally started getting asked for more lifestyle-related things,” she says, adding that the evolution has stemmed from a desire for a better work/life balance.

Director of Kay & Burton’s concierge team, Cath Stubbings

“Many of our clients have fairly senior roles, or run their own businesses, and they’re reevaluating what’s the best use of their time. Those working quite long hours see the value of outsourcing tasks they may have normally done themselves.”

Since COVID lockdowns, Stubbings says her clients are spending more time travelling so are seeking a professional shoulder to lean on.

“We look after their home while they’re away, which involves anything from visiting the property regularly to checking mail, watering gardens, turning lights on and off, putting blinds up and down, meeting trades, arranging cleaners or even putting food in the fridge.

“The idea is when they return they’ve got a welcoming house to come back to and it gives them peace of mind.”

As the sector grows, Stubbings says the requests are also becoming more bespoke.

“Now we even have people asking us to stock their cellars,” she says. “There’s a trade on our platform specialising in building cellars so they liaise with the client to get an idea of what types of wine they like, what balance they want, and then go about sourcing those wines and building the cellar up from scratch.”

Stubbings says with the work from home phenomenon, the need for help at home will likely continue to grow.

“Over the next three to five years we’re going to see more people calling on a wide range of concierge services as individuals travel more or spend time building businesses,” she says.

“It’ll become more common to seek out people like us who can support you getting things done around the home.”

Ben Broca launched a company last December that offers AI tools to entrepreneurs. He’s already added 10,000 paying customers and is on track to bring in $10 million in revenue this year.

One thing he hasn’t added: any other employees.

The 40-year-old is part of a class of entrepreneurs who are launching, and then often running, new companies on their own. Artificial intelligence tools answer Broca’s emails, help write and debug code, field requests from customers, sign up new subscribers and grant refunds when issues arise.

Broca relishes his ability to make whatever decisions he wants on his own, often from his sun-drenched Sausalito, Calif., living room. “I think compromises make lukewarm results,” he said.

Once upon a time, running a business of a certain size required a team. AI is turning that assumption upside down, and more aspiring entrepreneurs are going it alone.

Ben Broca sitting in his home office. — Tech has seen an explosion of solo founders in the past year. Broca said he likes being able to work at his own speed, unencumbered by a team. Jonah Reenders for WSJ

An analysis by the payments company Stripe shows there are thousands of solo operators on the company’s platform that are generating over $1 million in revenue, with their ranks doubling between 2023 and 2025. The number of solo operators crossing the $10 million threshold nearly tripled in that same span.

In the past, people without business contacts or particular savvy might not have known how to get their ideas off the ground, said Ernie Tedeschi, Stripe’s chief economist. “Now, AI can be a built-in business partner,” he said.

AI’s ability to handle various administrative tasks makes it potentially useful for launching solo businesses in many fields. But the technology’s ability to also handle key tasks in tech, like coding, make that field a particular hot spot.

Analyzing Census Bureau data, Bank of America Institute economist Taylor Bowley found that among all industries, new business applications in the information sector have seen the biggest percentage increase—nearly 45%—over the past year. At the same time, the rate of information-sector applicants saying they plan to hire workers has experienced the sharpest decline of any measured industry.

This Census dataset doesn’t track solo-operated businesses. But the numbers broadly show—in tech and beyond—that applications are flat among businesses likely to hire workers, but generally rising elsewhere. Economists say that’s a strong sign that solo operators are on the upswing.

“The bar for getting started has never been lower,” said Julian Weisser, who runs a San Francisco-based accelerator for solo founders working in tech. The accelerator—which offers founders seed money and mentorship in exchange for an equity stake—attracted 4,500 applicants for 10 slots made available in its most recent cycle, nearly five times the number it drew when it launched last May.

Going it alone with AI can still be surprisingly expensive. Broca said he was losing money on many customers’ accounts while paying to access Anthropic’s Claude to run his clients’ requests—that AI company, as well as others, charges based on usage. He has since switched to free open-source AI models from China.

Broca said he has raised $30 million from investors and, at the same time, has saved millions in salary since he hasn’t needed a team of software engineers.

Another risk: If it’s easy for one entrepreneur to launch an AI-assisted business, copying them can be easy, too. This creates anxiety for founders like Troy Johnston, who runs an AI-assisted business alone in Orlando, Fla.

“Everybody has the sword and we all have the ability to unsheathe Excalibur now,” said Johnston, 40, who used AI to code an app that helps people get the most out of credit card benefits. The company makes around $3,000 a month in profit, with no employees, and is continuing to grow.

Troy Johnston said AI’s power and ease of use is an incredible boon for entrepreneurs like him—and also a double-edged sword. Luann Koerper

What one-person businesses will mean for the labor market remains to be seen. Polling has shown Americans are worried that AI will replace jobs, and top economists are wrestling with that possibility, too. But AI is also creating lots of new jobs, and the go-it-alone entrepreneurs show how the technology can both open doors and limit employment opportunities.

“If everyone’s hiring less, but you get four times more firms, what does that do to head count?” said Rembrand Koning, an associate professor at Harvard Business School who studies entrepreneurship. He co-authored a recent study that found that among 50,000 startups the researchers examined, those focused on AI tended to operate with 25% fewer employees.

Koning also believes a soft hiring environment that’s left some people mired in long job searches has encouraged more to try their hand at launching businesses.

Some founders cite different motives. “It’s a perfect storm of post-pandemic burnout and a re-evaluation of one’s priorities, and also booming AI and a sense of what’s possible,” said Samir Ahmad, 39, who lives in Breinigsville, Pa.

Two years ago, Ahmad decided to leave the corporate job he had worked at Verizon for almost two decades to start a solo coaching and consulting business. He had been seeing social-media posts touting the ease and virtues of AI, which he used to chart a business plan and help with marketing. “It was like my chief of staff, a second in command,” he said.

The business ultimately petered out within months, though, and Ahmad is now back to a full-time corporate role with a utility company.

For Claire Vo, 41, AI helped her turn a passing impulse into a business. She was working full-time as a tech executive when she tapped AI in late 2023 to help code an app that would help her manage documentation and design for new products, with customers ranging from financial services to healthcare firms.

“I was copying and pasting from ChatGPT,” said Vo, who lives in San Francisco.

Claire Vo smiling into the camera while recording a podcast. — Claire Vo used AI to code an app that’s on track to make seven figures in profit this year. Claire Vo

She put the app online for $1 a month, and within weeks people downloaded it thousands of times. Nearly three years later, Vo’s company—which she ran solo for nine months before hiring an engineer—now has 100,000 users and is on track to make seven figures in profit this year. AI handles the company’s marketing, sales and customer support.

While AI is a shortcut, Vo said her network and credibility in the industry were key. “I think people over-index on how easy AI is and under-index on how much I did to get to this point,” she said.

The hotel-style services you can enjoy — without leaving home

The apartment concierge goes mainstream as luxury developments take service to a new level