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NYC Landlords Struggle with Residents’ Online Shopping Addictions

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Online shopping was the new craze, but it’s definitely here to stay. Online retailers such as Amazon, Etsy, Blue Apron, Overstock and Zappos have reaped the benefits of a booming industry which is convenient and even sometimes addicting. So much so that property owners are at the end of their wits trying to store the massive influx of tenant packages. Apartment buildings’ traditional package rooms have now become desperately inadequate. 

As per The Real Deal, an increasing number of NYC landlords have been expanding package rooms to keep up with the larger haul. Buildings have been renovating storage rooms to increase shelfing space, and make use of high ceilings or any crevices that can accommodate packages. For buildings where expansion is not a possibility, owners have been grappling to find clever ways to quickly turn over packages and avoid build up. This all has come at an expense to the landlords.

In new developments, real estate companies are now planning out their package storage rooms very early in the process. But even in pre-planning new buildings, adding extra storage room comes at the expense of signing retail tenants on the lower floors or apportioning space to a public lounging area. Developers have also tried offering tenants direct delivery of packages to their apartments, tying up productivity or even adding staff members.

Online sales in the United States this year are estimated to grow to $370 billion this year, quite a jump from $231 billion in 2012, as per to Forrester Research.  Amazon’s North American sales increased 25.2 percent in 2016. Online sales growth is expected to expand persistently. They say every cloud has a silver lining, but in this case it seems even silver linings have clouds. 

By:  Hadassa Kalatizadeh

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