Apartment Package Deliveries to Soar at Multifamily Communities This Holiday Season
Rick Haughey, NMHC
HOUSTON – (By Dale King, Realty News Report) – If you live in an apartment building, expect a surge of delivery trucks in your neighborhood this holiday season. Doorbells will ring more often, delivery drivers will be knocking more frequently, and package activity will increase across multifamily communities.
Just ahead of the holiday rush, the 2018 National Multifamily Housing Council (NMHC)/Kingsley Package Delivery Report finds that retailers and carriers are adapting to a significant uptick in online orders. Major retailers have relaxed minimum purchase requirements for free shipping, and delivery firms are expanding capacity to meet a predicted spike in e-commerce deliveries through year-end.
How intense could the increase be? The report notes that retailers like Target and Amazon temporarily removed minimums for free shipping. The National Retail Federation found that 55% of holiday shoppers plan to buy gifts online. Meanwhile, United Parcel Service projected it would deliver 800 million packages during the season, with peak demand expected between Black Friday and New Year’s Day.
Package deliveries to multifamily properties are rising as well. On average, apartment communities receive nearly 150 packages per week. During the holidays, that average jumps to 270 packages per week—a surge of about 81%—putting pressure on property teams to manage higher volumes.
That pressure is already noticeable for property managers. More than one-third report their building’s package storage solution is inadequate during peak periods. Complicating storage needs further, residents increasingly order heavy, oversized, or perishable items that require special handling.
“How people shop has evolved significantly in recent years, and the multifamily industry must find new and creative ways to meet the demand for storage, sorting, and security,” said Rick Haughey, vice president, Industry Technology Initiatives, National Multifamily Housing Council.
“Our research shows property managers are adopting technology solutions and determining what works best for their properties.” Decisions include whether to keep package storage on-site or offsite, whether to use electronic management systems, and how to allocate or pass on the costs associated with handling rising delivery volumes.
Most buildings (77%) now have a dedicated package storage area, with lockers increasingly preferred by managers. The survey found 85% of package rooms are secured. Camera systems and controlled-access touchscreens are common, used in 58% and 50% of properties respectively.
Improving sorting, storage, and security is only part of the challenge, Haughey added. Managers must also consider environmental controls for stored items. “Our data shows 44% of property managers with refrigerated package lockers report daily use, yet only 4% of buildings offer them,” he said, highlighting a clear gap between need and availability.
“Managing deliveries can be especially challenging in high-volume markets like New York, Washington, D.C., and Chicago,” said John Falco, principal at Kingsley Associates. “In denser urban areas, space is often limited, which makes effective package storage solutions especially important.”
“As online sales continue to climb, package deliveries are becoming an ongoing concern for apartment communities,” said Mercedes Sanchez of the Houston Apartment Association in a 2015 interview with The Today Show. “Many buildings lack sufficient storage capacity and are reevaluating policies and procedures to cope with the flood of packages.”
After packages are delivered, other issues emerge. Fifty-four percent of respondents report they accept and hold return packages for carrier pickup. Additionally, 41% say the volume of cardboard and packaging materials has created a waste-management challenge for their communities.
The NMHC/Kingsley survey was conducted in September 2018 and includes responses from property teams at 2,098 communities representing 543,900 units. Twenty-nine leading industry firms participated in the study.
