A new generation of apartment tenants seek additional storage in lieu of parking spaces
As social and economic trends continue to evolve, the number of people who live in multifamily apartments increases and simultaneously their preferred amenities change. There was a time where tenants strongly desired their very own designated parking space. Some still do. But the future for automobile purchases is dwindling, thus the need for massive parking space inventory is as well.
In this article, we identify the demographics of current and future apartment tenants, their lifestyle preferences and how it influences what they want from their multifamily apartment amenities and how you can address the inevitable change.
Most businesses sustain their success because they stay ahead of trends. Trends determine what consumers want to buy and that changes periodically for many reasons. Anticipating the housing needs and amenity demands from your most valuable demographics can be tricky. Fortunately, we’ve done the research and bring you answers and solutions.
Millennials Aren’t Buying Cars
As far as statistics are concerned, the differences among apartment tenant demographics are subtle but the majority of apartment residents are Millennials under 30. Millennials dominate a lot of buying power in many markets and the same goes for apartment living.
So, what millennial lifestyle preferences does your property cater to and how?
Many property owners may be quick to install a mini-gym and call it a day, when in fact there is a far larger issue standing in the way of attracting potential renters—unused parking spaces!
As the largest generation becomes more environmentally conscious and spend-savvy, they simply aren’t buying or leasing vehicles nearly as much anymore. According to Forbes, Millennials are highly likely to use public transportation and rideshare services more than older generations ever did.
A study held in 2010 covered several midwestern states and found that there was an average of 2.2 parking spaces per 1 registered car. And in 2011 a similar study was held by the University of California that estimated there are upwards of 800 million parking spaces in the US, covering about 25,000 square miles of land. Over the years, the gap between available and unused parking spaces continues to increase.
Millennials seem to agree that the environmental cost of unused parking infrastructures sometimes equals or exceeds the environmental cost of the vehicles themselves.
Millennials are the first generation to buy from their hearts. They make purchases and rental decisions based on practices and beliefs. They also value efficiency. And wasted property space just isn’t efficient or considerate to what your tenants may value.
With your target resident no longer needing an oversized parking lot, what can you do with all that extra space?
Added Storage: More Value, More Profit
As we move in the direction of tenants who prefer biking, carpooling, and public transportation, parking lots are losing their value. But one thing your tenants will always value is the additional square footage of storage space.
Trade in rows of white lines and yellow parking bollards and increase your revenue with Bradyl’s storage Units. The Bradyl Bin is the perfect opportunity to transform wasted space to an amenity your residence will actually use! Bradyl Bins can generate up to $5 per square foot of on-site storage space by renting to your tenants on a monthly basis.
It doesn’t matter the size or shape of your covered parking lot or garage, Bradyl Bins are custom fit to the dimensions of your unused parking space.
So…why storage?
There are a few reasons.
The first reason is obvious. Wasted parking space can be used to add a unique apartment amenity that increases your property value and offers a competitive advantage.
The second comes directly from a Bradyl survey of apartment residents who rank on-site storage as the 4th most important amenity (only behind a fitness center, pool, and high-end appliances) surpassing covered parking as a priority.
The third reason to add on-site storage in place of unused parking spots is that not only are millennials (50% or your target market) giving up cars, they’re giving up clutter. The minimalist movement is on the rise and early thirty-somethings want as much open space in their apartments as possible.
Minimalism is the style and appearance of having less and adopting a clean, simplistic approach to home decor and living. But this doesn’t mean people are just throwing their stuff in the trash.
Guess where they do go when it comes time to turn their apartment abode into an organized tiny home? That’s right, storage.
Off-site storage fees are predominantly $101-$150 a month. According to Bradyl Surveys, many tenants rent off-site storage but would be willing to move their belongings onsite if Bradyl Bins™ were offered.
Are you willing to give up that additional revenue potential to an off-site, sub-par storage facility?
We didn’t think so.
Conclusion
Anticipate the needs of your Millennial market and stay ahead of the trend by offering more value per square foot.
Bradyl isn’t the first on-site storage business to grace the market, but our awareness of industry patterns and socioeconomic diversification has kept us one step ahead at addressing wasted space on multifamily properties.
