Property Managers: How to Handle the Influx of Package Deliveries

Welcome to the age of e-commerce. The contemporary digitized shopping module is impacting commercial real estate in more areas than just retail and industrial – it’s also having strong impacts on multifamily.

Multifamily tenants rely on massive online realtors, such as Amazon, meaning more packages are coming through the door – and they all need to be processed through the building’s centralized mail circuit.

A few years ago, this wasn’t much of a stressor for management. However, the times have certainly changed and the sheer number of online orders isn’t what it used to be.

According to data from E-Marketer, by 2023 the global e-commerce industry is anticipated to exceed $6.5 billion. This change has happened so quickly it’s left multifamily managers struggling to keep up.

Multifamily property managers are facing an unprecedented volume of package deliveries where both the frequency of deliveries and the number of boxes have been exponentially increased. The heat is on – and, with e-commerce on the rise, it’s only expected to intensify.

It’s time to get the situation under control before it gets out of hand. Use these 4 tips to stay organized:

Let Tech Lend a Hand

At this point, it’s a good time to invest in technologies. Technology is playing a pivotal role in supporting today’s quota of package deliveries.

There are tons of ways tech can be weaved into the package delivery process – be it at the front door for mailmen, through a community app that alerts tenants to their delivery, or a digitally delivered safe code key that needs to be shown to retrieve a package.

Don’t get overwhelmed with the possibilities for tech integration. The options are nearly endless, but focus on what matters most for your community needs. Property managers should take a deeper look at their specific issues and employ tech to their primary pain points.

Consider Expanding the Mail Room

If your property’s mailroom is already feeling cramped, it may be time to invest in a renovation. Expanding the mailroom is a must in order to accommodate packages – which are increasing in both number and size.

Hire More On-Site Team Members

At this point, the package delivery system has gotten so intense that it may be time to start growing your team.

Increasing the number of people on-site can help alleviate the pressures of accomodating for the frequent deliveries happening daily. In fact, some property managers even find it necessary to create a position specifically to handle the influx of e-commerce packages.

Delivery Lockers Assure Safety and Security

No property management team wants to incur the wrath of a tenant who can’t locate their package. Mailroom discrepancies are becoming a big issue for management teams that are struggling to mitigate the organization and security issues that accompany e-commerce deliveries.

In order to avoid these issues, delivery lockers are helping keep packages safe and secure. These unit-specific lockers are a safe house for e-commerce orders until their owners can come down and pick them up. This lock-and-key option is superior to leaving the package sitting out in the open.

These 4 tips are set to help streamline the added load of package deliveries to multifamily properties – mitigating the stress from the management team.

4 Ways to Attract Tenants in the Spring and Summer Months

Newly built University of Dayton college campus housing, called Caldwell Street Apartments, Dayton, Ohio.

As we’re approaching the industry’s slow seasons, we all can benefit from adopting some tenant-attracting strategies.

Compared to winter and autumn, the spring and summer months can bring about a slow down for the CRE biz. Property owners who still have vacancies on their hands should step up the game to get tenants – especially when it comes to multifamily properties.

Here are 4 winning ways to lease rental properties within multifamily buildings.

Everybody Loves Incentives

If you’re looking to attract tenants to your multifamily property, you’ve got to sweeten the deal.

Incentives can work wonders in catching the eyes of today’s buyers and renters. Consider offering special offers on the internet, cable, or TV packages. Properties that are located nearby commercial assets such as gyms, vets, or cafes can even partner up with these businesses to provide discounts to renters as a ‘welcome to the neighborhood’ package.

When it comes to incentives, get creative. Zero-in on the tenant experience to get an idea of what renters in your area are looking for.

Consider Lowering the Asking Price

Dropping the price point of your vacant units can be a powerful way to spike the market interest of your property’s listings.

The good news is this actually won’t be hurting your profit margins. Reducing the asking price by a couple of hundred dollars on a unit that’s been unoccupied for a great length of time can save money in the long run.

Having vacant units sitting in your complex is probably costing you more money than you think. Empty apartments are still consuming utilities but not producing positive income – resulting in a negative asset. Long-standing vacancies take a huge hit to annual ROI.

Multifamily property owners should lower the asking rent for properties that have been sitting on the market as we’re entering into the spring and summer.

Don’t Ignore the Power of Curb Appeal

Appearance plays a pivotal role in attracting tenants to your multifamily property. Remember, it’s about more than just choosing a unit in a commercial real estate property. It’s about finding the perfect home, which innately means delivering one’s lifestyle goals.

And, this isn’t only achievable via ultra-luxe amenities. Aesthetics play a powerful role in giving the market what it wants. Today’s buyers and renters are looking for a multifamily property that lives up to their design goals.

Consider sprucing up the exterior of the building with some new landscaping and plant additions. Lobbies are a big point of influence  – so don’t forget to focus your efforts there, too.

Work With a Tech-Savvy Team of CRE Pros

As with any commercial real estate endeavor, working with an outstanding team of professionals is the best way to enhance any deal.

Make sure that your choice is actively using technologies to get your listings out to a broader audience and catching the eyes of prospective leads. Including HD video content such as VR touring technologies and overhead neighborhood tours with drones can also enhance your property’s web presence.

Spring and summer are approaching quickly, so use these 4 insider’s tips to fill up your vacant multifamily units.

4 Must-Watch Real Estate Technology Trends

The boundaries of real estate technologies keep on expanding. Are you up to speed?

When looking at real estate technology trends, it seems like progress will never end. Ground-shaking technological advancements are spearheading the commercial industry by transforming how this business gets done, how tenants interact with properties, and how we view the CRE industry as a whole.

It’s 2020 and the pace is unprecedented. Commercial real estate pros from all around the globe need to keep their eyes on these highly anticipated tech trends.

These are the biggest technology trends in real estate that we can’t afford to ignore:

Expect to See Virtual, Augmented, and Mixed Reality Integrations

When 3D modeling technologies began taking hold within the world of real estate, it marked a major progression of real estate tech. Virtual, augmented, and mixed reality integrations have been completely reimagining the industry at large.

One of the most prominent places we’re seeing VR in real estate is through virtual touring – something that’s already taken off within online leasing arenas and property listing websites. This major progression has helped enliven the market search process. VR tours are making the details clearer, expanding the target influence to remote buyers, and making listings more dynamic than ever. 

But, it doesn’t stop there. VR is also helping to expand pre-construction leasing by advertising properties while they’re still in the development stage. Additionally, VR is being used to plan property renovations and buildout projects, too.

Online Investment Marketplaces are Gaining Momentum

Shopping for real estate is going to get a lot more digital. This newly-introduced method of real estate marketing is helping investors from all around the world get in touch with buyers – regardless of their locations. Of course, virtual reality will be included in the marketing module.

Programs including these cutting-edge marketplaces are set to transform the real estate buying and selling process in major ways.

Hello, Big Data

In today’s world, information is the most powerful asset in business. That said, it’s no wonder that Big Data is marking a big presence within real estate. In this industry, Big Data refers to the massive stores of market research, analytics, and prospects that fuel winning real estate strategies.

Real estate pros are harnessing the powers of Big Data to appeal to buyers, explore seller’s motivations, and zero in on the most coveted property features on the market. Don’t ignore the profit-boosting powers of data – especially in 2020 and beyond.

Going Quantum with Automation

Ever get the feeling there’s not enough time in the day? Well, business automation can help with that. Real estate businesses are choosing to harness the powers of automation to alleviate some of the busywork required to stay current in today’s market.


Social media streams, daily operations, client communications, and property upkeep are going through an intensive automation process – helping real estate professionals spend more time on the things that matter most.

No matter what your role is in the real estate industry is, keeping an eye on these trends will keep you ahead of the pack.

Splitting the Difference. Evaluating the Feasibility of a Real Estate Development

 

Alec Pacella, CCIM
Managing Partner
NAI Daus in Cleveland, Ohio

@dausyouknow Twitter
apacella@naidaus.com

Last month, it was announced that Amazon is converting the old Randall Park Mall site as a location for one of its massive fulfillment centers. The numbers associated with this facility are staggering. At an anticipated 855,000 square feet, it will be the largest warehouse/distribution development ever in northeast Ohio. The projected employment of 2,000 is more than the entire population of North Randall. And the projected cost of the facility is $177 million. Numbers like this can make a person dizzy – so how does a developer make sense out of it all?

This month, we are going to take a look at two of the most common approaches that are used by developers when evaluating the feasibility of a real estate development.

Before either of these approaches can be used, the developer first needs to determine a figure known as the Total Project Cost. This include hard costs, such as concrete, steel, plumbing and associated labor, as well as soft costs, such as fees, professional services and contingencies. It does not include profit but don’t worry, we will get to that in a few minutes. Once an accurate Total Project Cost is determined, the developer can use either the Cost Mark Up method or the Rent Constant method.

The Cost Mark Up method calculates the profit as a percentage of the “all-in cost” and is a series of gross ups. The first step is to multiply the Total Project Cost by the target Mark Up percentage, which indicates the Profit. This Profit is then added to the Total Project Cost, which results in the Net Market Value. And finally, an estimate of Sales Cost, as if the project would be immediately sold when completed, is added to the Net Market Value, which provides the Total Market Value. Click here to read entire article