Sell for More News is a weekly blog series with interesting information from the world of commercial real estate.
Ridesharing isn’t going away. To the contrary, it’s sure to grow in popularity, especially for people without small children. So landlords of all kinds should embrace ridesharing.
In fact, many retail landlords are now partnering with ridesharing companies directly. They’re entering into agreements for designated drop-off and pickup locations, typically highly visible with signage. And they’re offering riders promotions or discounts as well as introducing lounges and driver hubs into the properties.
These arrangements frequently provide landlords with revenue, and the partners expect to explore additional marketing opportunities and synergies to leverage one another’s brands. For shopping center landlords, the appeal includes providing better service and tracking the percentage of shoppers who use ridesharing services.
For example, Lyft has partnered with landlords and agreed to share in Lyft ride revenues and to provide promotional rates to or from the properties. The landlords will also receive rider traffic counts and information about where shoppers are requesting to be dropped off or picked up.
We’re seeing a big shift to people using ridesharing all across the country. People are more interested in paying to be dropped off at the curb and not having to deal with their own car or deal with parking.
Regional mall landlord Macerich, which owns some 52 million square feet in the U.S., noted its structured deals with rideshare companies in multiple ways including monthly rent and revenue sharing. They have a mix of designated drop-off and pickup zones along with pinned locations at several of its centers.
Meanwhile, Unibail-Rodamco-Westfield launched a partnership with Uber in 2017 and about 30 of its centers now have as many as 10 pinned pickup and drop-off locations.
And last fall Uber introduced its Uber Lounge at the 1.3 million-square-foot Westfield Century City in Los Angeles. The lounge provides waiting riders with “sleek seating” and other amenities. Marketing promotions between the partners are becoming more common too, including special vouchers that give Century City shoppers a complimentary roundtrip to and from the Uber Lounge.
Simon, which owns about 200 shopping centers across the U.S., has embedded an Uber button into its property websites and apps that enable shoppers to hail a ride to a particular center with one click.
Landlords don’t need to wait for a partnership before they establish pickup and drop-off locations. They should be proactive and add them now. And covered lounges are a smart idea too.
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About Beau Beach, CCIM
Beau is a tenacious Commercial Real Estate Broker, author and adoring father of four. His clients appreciate his no-nonsense demeanor and his legendary work ethic.
Beau leads Beachwood which is a commercial real estate broker for sellers in the Nashville, Milwaukee, South Florida and Chicago markets.
He’s the author of the books The 3 Reasons: Why Most Commercial Properties Don’t Sell and True Wealth: What Every Seller Should Know About 1031 Exchanges.
Beau can be reached at 414.324.4938, 615.603.9770, click to schedule a call or Beau@ProwessIRES.com