Amazon’s Forthcoming Addition of 100,000 Employees Underscores Package Boom

Warehouse worker taking package in the shelf in a large warehouse in a large warehouse

Warehouse workers search for their packages in an unorganized package room.

It is no secret that the trend is there. Package delivery is increasing on a daily basis, as millennials prefer the convenience of shopping from their phone.

Even older generations are beginning to resist shopping in stores, opting for the alternative of making a few clicks and waiting a few days for the package to arrive at their doorsteps. That’s why, despite strong industry-wide sales, prominent retailers such as Macy’s and Sears are closing many of their brick-and-mortar stores.

This trend is not a momentary blip. In fact, a recent proclamation by tech giant Amazon indicates package delivery will continue to steamroll in this direction for the foreseeable future. Amazon, widely known as the king of package delivery, has indicated that it will create 100,000 jobs in the U.S. by 2018, according to a recent article by USA Today.

Apartment operators should prepare accordingly, as this is not a knee-jerk move by Amazon. First Data reports that ecommerce’s share of retail sales in the holiday season was 21.3 percent, a hefty increase from the 15.4 percent of 2015. Expect the numbers to rise again in 2017, as the Internet now represents six percent of the total U.S. economy. And it’s not only going to grow during the holiday season. Package delivery is steadily increasing year around, with significant upticks around back to school, Halloween and even Mother’s Day.

If your apartment communities have not yet adopted a solution to combat the influx of packages – such as a smart room, package lockers or a package management team – now is the time. While many apartment owners/operators were ahead of the curve and enjoyed a much smoother 2016 holiday season, still a large number of the industry saw overflowing packages, leaving overburdened members of the leasing team with the cumbersome task of sorting through them.

In September, Amazon announced intentions to deliver its own packages, eschewing traditional delivery services UPS, FedEx and USPS by building its own delivery service. Now comes news of Amazon’s hefty six-figure addition of employees, with many of the positions slated for four soon-to-come fulfillment centers.

The additions of fulfillment centers in California, Florida, New Jersey and Texas have clear objective in mind: Get packages out more quickly. Amazon went from 56,200 employees in 2011 to 306,800 last year. Now 100,000 more are on the way to keep up with the country’s propensity to shop online.

The packages are coming at a historic rate and, as indicated by the actions of one of the nation’s premier tech giants, the breakneck pace will continue. Make sure you’re proactive rather than reactive, or you might end up beneath the pile.

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Client Spotlight: Alexan on Krog

Krog1As we continue to showcase the multifamily properties of our clients, this spotlight blog is all about a “peachy” location; the Alexan on Krog, a Greystar property located in Atlanta, Georgia introduces itself by inviting you to, “Live Where the Beltway Meets Badass Restaurants and More-Than-Mainstream Merchants at the Market.”

Krog 4Brimming with a vast assortment of food choices, shops, vendors and artistic creations, the community around Alexan on Krog satisfies the most diverse palate. The property amenities include a clubroom with 12 HDTVs accompanied by multiple gaming stations, community bike share, and a 24-hour fitness studio. Don’t feel like going out to the movies? No problem! Residents at the Alexan can simply go up to the rooftop cinema and enjoy a film as they say goodnight to the closing Atlanta skyline; a major differentiator in the market. With so much to see and do, Package Concierge is on call 24/7 to provide peace of mind to those concerned about residential deliveries.

Krog 3Upon speaking with Ashley, the leasing specialist at Alexan on Krog, her first comments about Package Concierge were: “We’ve only received positive feedback from our residents about the Package Concierge system. It keeps things organized and is very convenient. Our residents, who are Amazon Prime customers, think it’s great!”

Krog 2Alexan on Krog gets its fair share of packages, making the Package Concierge system an essential amenity. Ashley said, “I observe constant use of the Package Concierge up until the time we close.” Ashley also made note of how fast and easy the system was to use, which helps everyone get back to working and playing hard in the many boroughs of Atlanta.

Krog 5Living in one of the busiest cities in America doesn’t have to be a stressful situation. Alexan on Krog is an oasis close to the beltline but far from the discomforts of big city living. Ashley says, “It’s wonderful to see this area grow and very exciting to be a part of the process.” We feel the same way and are proud to contribute with our Package Concierge system.

Alexan on Krog Information:

LEASING CENTER: 44 Krog Street; Atlanta, GA 30307

EMAIL: leasing@alexanonkrog.com

CALL: 404.331.0620

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