Bidding War
A new apartment rental site follows eBay’s lead.
Though apartment companies have attracted media attention for placing properties up for auction on eBay, no one had stepped up with a site that specifically put apartments up for bid. But that changed this summer when BidRent.com, a wholly owned subsidiary of YellowPages Online Corp., launched an auction site targeting apartment and house rentals nationwide.
The site enables landlords to list vacancies for free, while potential renters can bid for units on the site. Right now, potential renters can find ads for the site online at MySpace.com, craigslist.com, and backpage.com. “It opens the doors to negotiations,” says Robert Roth, who handles customer service and public relations at BidRent.com. “Right now, people don’t bid on rental prices. Because people don’t make the offer, the landlord never receives it. So that door to negotiation is always shut.”
So far, mainly smaller landlords with apartments or single-family homes have been using the site, but Roth hopes to appeal to larger players, too. “I don’t see why the bigger apartment companies wouldn’t have an interest,” Roth says. “It’s free. I don’t see how it could hurt them.”
Dave Woodward, managing partner and CEO of Laramar Communities in Greenwood Village, Colo., doesn’t see larger owners putting massive amounts of apartments up for bid, but he says it could work in certain situations.
“If you have a challenging unit that overlooks a Dumpster, maybe you will rent it for whatever someone will pay,” Woodward says. “By doing it selectively, you aren’t undermining your rent structure, because it’s a unit that’s discounted for a specific reason.”
–Les Shaver
Think Small
Will home sizes shrink?
Americans love big things. Super-sized cars and spacious houses are just the tip of the gigantic iceberg.
But the Urban Land Institute says that the size of new, for-sale houses could be diminishing.
“We think it [housing size] will go down in the next couple of years,” says John McIlwain, senior resident fellow and J. Ronald Terwilliger chair for housing at ULI.
While the shrinking housing size hasn’t yet shown up in national numbers, ULI is confident in its projections, which it developed from research and anecdotal comments from different home builders.
One major influence, according to McIlwain: the popularity of condos, which tend to have a smaller square footage than single-family homes. Such a trend pulls the overall housing size numbers down. Demographic changes also play a major role. Many singles are buying homes and living on their own. “We’re getting more people living alone than before,” McIlwain says.
McIlwain reasons that once these people get married, they may stay in smaller housing units near urban areas. “They’re having kids at later ages,” McIlwain says. “People in their late 20s or early 30s would much rather be in a condo or townhouse downtown.”
Not everyone sees this trend, though. “Our consumer preference surveys continue to show people wanting to move to bigger houses, and the data on construction sales do not show any reversal,” says Michael Carliner, an economist at NAHB. He also has a different view on demographics and their influence on American home size. “Increased shares of homes will be bought by immigrant households, who tend to have larger households,” he asserts.
–Les Shaver
Executive Feedback
What best practices from other industries have you adapted for use at your company?
A: “Four Seasons is legendary for exceeding customer expectations. We try to emulate that even at lower price points. We also love a West Coast fast food chain called In-N-Out Burger. They keep it simple, offer a better product, and anticipate their customers’ needs. Both organizations have a devoted following.'” –Tom Bruin, CEO, Silverstone Communities
A: “Our management philosophy is based on two pillars: mutual respect and what we call ‘Kaizen,’ which means continuous improvement in Japanese. We actively encourage our employees to suggest new ways that can improve our system. Inventiveness comes naturally to those who are encouraged to contribute. This core value is the centerpiece of Toyota’s production system and is credited as the driver of their market leadership position in their industry.” –Joel Cantor, CEO, Cantor Development
A: “Crosland studies the hospitality industry, particularly Ritz-Carlton and Marriott. Those organizations comprehend that customer interaction is just as critical as their physical assets. Our associate training is based upon this philosophy, which is one reason we’ve won CEL’s national customer service award for six straight years.” –Justin F. (Jud) Little, president, Crosland apartments division
Project of the Month: The Towers at University Town Center
Hyattsville, Md.
The Towers at University Town Center is a cutting-edge example of what student living should be like–or at least what every student fantasizes about when they think dormitory living. The 910-bed facility, located in Hyattsville, Md., offers student housing to nine different colleges and universities, including the University of Maryland, Catholic University, Howard University, Trinity College, American University, George Washington University, Georgetown University, Prince George’s and Montgomery community colleges.
The age range of students leasing at UTC goes from 18 to 43–making the project one of the most diverse student housing communities in the nation. The coolest aspect of the facility–every student gets their own private bedroom and bath, a feature unheard of in dormitory living of the past. Some of the perks exceed even traditional apartment or condominium living (read: non-student living).
Furnished suites will have either two or four-bedroom floor plans, with a shared a living area, dining area, a full kitchen with high-end appliances, high-speed Internet connection, and washer-dryer. The property is cable and wireless Internet ready.
Other amenities at UTC include 24-hour access control, parking, a full gym with two tanning beds, rooftop pool and sundeck, a game room with 92-inch projection screen TVs and 13 32-inch flat screen TVs. The Towers at UTC is 16-stories tall and will offer more than 250,000 square feet of retail and entertainment including a large-scale grocery store and a movie theater. No surprise here–the project is expected to be fully occupied once this year’s school season starts up. UTC is managed by JPI Student Living.
–Abby Garcia Telleria