“You immediately log on; you don’t have to earn points—you just get a discount,” she says. “We are only 45 days into the promotion, so it’s hard to say if it will decrease turnover or increase rents, but frankly, it is a great benefit to the residents, and that always becomes a discussion at renewal time,” Teabo says.
Related’s Froelke believes it’s vital to maintain open discussions about the successes and challenges of retail and residential synergy. “Make sure there is communication between all of your various entities,” he says. “Ensuring the same level of service and lifestyle experience is an ongoing challenge, and once you bring retail to your residents’ doors, you are selling quality and a way of life, so you had better be consistent. You want to know your residents, be at their level of sophistication, and exceed their expectations.”
Resident Files Retail Repositioning Partnering with businesses can be the key to property stabilization.
In 2004, Portland, Ore.-based Guardian Management, a multifamily real estate firm, bought two dilapidated affordable housing communities in Dallas. In order to revitalize the properties, called Pleasant Village and Grove Village, Guardian did more than spend millions rehabbing the assets; the firm launched programs with local nonprofits, businesses, and retailers to improve resident morale and retention.
The result? The communities are now full (versus 50 percent occupancy in the past) and thriving. Residents enjoy free shuttle services provided by the Boys & Girls Club; kids’ woodworking classes sponsored by The Home Depot, and semi-annual job fairs.
“The idea of retail and nonprofit partnerships started with wanting to create a unique experience but [also] help our residents achieve their life and career goals,” says Guardian portfolio manager Roxana Hammock. “Our first call was to the Dallas Chamber of Commerce, [but] we literally went through phone books and resource guides and just started calling: ‘Here’s what our residents need. Can you help? What can we provide to your business?’”
While most businesses are receptive to offering discounts as a marketing opportunity, an even easier way to establish partnerships is to host job fairs, Hammock says. A hiring event at Pleasant Village, for example, brought 350 residents out to talk with employers such as Wal-Mart, the U.S. Air Force, and The Home Depot. Hammock suggests meeting with partners on a regular basis, participating in their events, and making full use of marketing materials such as co-branded door hangers, flyers, and corporate and resident newsletters.
Such programs have reduced turnover and advertising expenses. “It empowers our residents, enables our staff to make a significant impact on the stability of our community, and increases long-term property value,” Hammock says.
