By Wayne M. Wudyka
It wasn't long ago that the biggest attractions for apartment dwellers were a friendly concierge or cheap rent. As the economy continues to shake off its recessionary slumber and gradually pick up steam, and as more and more young adults are getting out of their parents’ basements and flocking to multifamily properties, a range of new and different preferences — and higher expectations — are beginning to emerge.
The millennial generation is all about technology, efficiency and customization. High-tech has become highly personal in recent years and notions of personal service, flexibility and conveniences have evolved rapidly. Today’s generation of young professionals is accustomed to having the “world in their pocket,” in other words, running their lives and accessing information and services through the use of a smart phone.
This culture shift has and will continue to effect retail and residential property management and development. Tenants from this generation do not want packages to be delivered to a concierge who may or may not be available on their schedule; they want and increasingly, they expect, to be notified about the arrival of their package immediately, and pick it up on their terms.
Similarly, laundry and dry-cleaning services have gone from a “one-day” nicety to a “must have today” essential. Grocery delivery is yet another example of this trend in personalized convenience services; some even bring farm-fresh produce directly to customers’ doorsteps, all made possible with new technology and mobile apps.
Companies with new locker delivery systems are working to address these new realities, providing customers with an email or text alert informing them that their package, dry-cleaning or other commodity has been delivered, enabling them to access a secure location where they can pick it up anytime. Going forward, service providers of this type will rule the day. Those who perform services such as personalized dry-cleaning will be the key to fulfilling the demands of residents.
Amazon is one of the pioneers in this venture — adapting to changing customer expectations in a brave new world of flexibility, personalization and convenience by installing lockers for easy and secured package delivery.
Innovative new dry-cleaning brands have begun installing personal lockers in office buildings, residential communities and multifamily residences functioning as a kind of “garment concierge mailbox.” Such a service makes it possible to drop off dirty garments and pick them up freshly cleaned with unprecedented ease.
As more retailers and service providers begin offering these amenities, owners and operators of multifamily properties, office buildings/facilities and parking structures need to pay close attention. These new “anytime/anywhere” services provide a significant and defining difference-maker when it comes to attracting residents and professional tenants. Such amenities can provide a competitive edge, particularly when those extra benefits consist of cutting-edge service and convenience.
Understanding these emerging services, appreciating the impact that this trend has for real estate business, and staying informed about new service concepts is becoming an increasingly essential part of doing business for landlords, and building owners and operators everywhere.
New ideas
While many of these new concepts arise at the intersection of technology and customization, a large part of their appeal and functionality stems from the fact that they also incorporate some clearly low-tech components, and rely on some very “old school” notions of service and convenience.
While many of the details regarding access, security and notification involve technological capacity that did not exist until recently, there is nothing particularly high-tech about a locker. Yet the personal locker-based delivery system is one of the fastest-growing new service concepts because its usage of technology has overcome the tipping point where previous attempts have failed.
While Amazon Locker has gotten plenty of attention, a number of brands have begun offering intriguing new locker-based personal services. In fact, one of Amazon’s competitors has unveiled its own locker delivery concept: the online retail delivery giant ShopRunner announced earlier this year that it will offer locker-style delivery stations known as “PickUpPoints.” ShopRunner, which provides its members with free delivery from a list of more than 60 retailers, is positioning the first rollout of 100 PickUpPoints in Toys “R” Us stores, shoe stores and 7-Eleven convenience stores in the Philadelphia region.
Google also recently announced its acquisition of “Buffer Box,” a Canadian parcel delivery startup that serves as a PIN-protected P.O. box for packages sent by any eRetailer to solve the problem of missed deliveries. Google’s entry into the locker arena signals the seriousness of the company’s intentions to go head-to-head with Amazon on retail, which likely will lead to a heated battle for locker installations at a wide range of locations.
The formula for all of these new service concepts is simple: convenience. While the technical details may vary (some use a personal PIN for locker access, others a key, etc.), the bottom line is that customers can pick up their laundry, retail order or food at their own convenience. The appeal of that level of customizable access cannot be overstated.
In a broader sense, access to new markets and new spaces within those markets has been and will continue to drive this service trend. A large part of the appeal of a locker-based delivery system is that it opens up endless possibilities for downtown urban markets, multifamily apartments, condominiums, gated communities, workplaces and even structures like parking garages.
This access and opportunity in cities and spaces that traditionally presents obstacles to service and personalization is not only a welcome convenience for tenants and residents, but also an extraordinary competitive advantage for landlords and building owners and operators. And because these services are logistically simple, they are able to provide efficient personal service without being intrusive or disruptive.
New possibilities
From a marketing standpoint, the ability to tout a range of conveniences and on-site services for clients is a powerful selling point that conveys a potentially enormous competitive advantage. This model enables offices and residences to offer what amounts to luxury level services for little to no capital investment. At a time when some resident and tenant preferences — luxurious lobbies and facilities, for example — require a large investment, getting a lot of bang for your service buck is an appealing notion.
The value equation is also a favorable one for building owners and operators: if a particular service helps lease even one more apartment a year or sign just one more office tenant, it will have had a significant and measurable impact on the bottom line.
In part, what is most noteworthy about these trends is how fast they are changing. Yesterday’s rare perk becomes today’s must-have amenity with remarkable speed. Consider WiFi: It wasn’t long ago that wireless Internet access was an unexpected luxury, and yet today, it is both literally and figuratively a virtual requirement for any competitive residential or professional building.
If there is a lesson to be learned, it’s that being proactive and getting out in front of new service concepts and conveniences is something that many landlords, owners and operators should strongly consider making a top priority.
— Wudyka is the CEO of Michigan-based Clean Brands, the parent organization for service-oriented companies such as 1-800-DryClean, Huntington Cleaners, Wesch Cleaners and the Certified Restoration Drycleaning Network (CRDN), an international insurance restoration franchise in the U.S., Canada and U.K.