Multifamily Package Volume is Approaching the Breaking Point

fetch delivery volume future projections

What are we supposed to do with all of these packages?

 

It’s a sentiment that has echoed through leasing offices across the country since the emergence of Covid-19.

Package volume at multifamily communities has skyrocketed in recent months. In an effort to avoid public spaces including brick-and-mortar retailers, renters are increasingly turning to e-commerce for almost all of their shopping needs. As a result, online orders are piling up at apartment buildings, and finding storage space has become a constant and often unfeasible task for property managers.

Year over Year Package Volume Graph

From June of 2019 to June 2020, package volume per unit at multifamily communities served by Fetch increased by 59%. In May, Fetch users at those properties averaged more than 10 package deliveries per apartment home, surpassing online holiday shopping levels from 2019. The average for July and August 2020 has been hovering around the 10 packages mark as well, at 9.79 and 9.83 packages, respectively. 

Number of packages per apartment

So, what has that unprecedented package volume meant at the property level?

subscribe to our newsletter to stay up to date with multifamily projections and news

subscribe now

Volume, Oversized Packages Push Storage Limitations

It only takes one couch or king-sized mattress to clog a package room. 

While the percentage of all packages that qualify as oversized – those measuring more than 4 cubic feet – remained consistent during the first six months of the pandemic, the overall volume increase means that oversized package volume has gone up at a similar rate. 

Oversized packages make up only 5% of the total Fetch package volume, compared to 35% for envelope-sized deliveries and 60% standard parcels, but their impact has been felt recently.

Fetch delivered 6,813 oversized packages in April, but that number jumped by 68% in May to 11,477. Large package numbers climbed by another 16.53% in June and went up by an additional 2.44% in July. By mid-summer, oversized package volume increased to more than 200% of what it had been just three months ago. 

The new package flow has surpassed the capacity of most multifamily properties and put a strain on thinly stretched on-site teams who were already taxed with trying to keep business running while managing through the ever-changing pandemic guidelines. The glut of online orders has also forced many properties without off-site package solutions to decline oversized packages or risk alienating residents by ceasing acceptance of package deliveries altogether.

How bad is the problem?

To put things in perspective, let’s assume that the average leasing office size is roughly 800 cubic feet – wall to wall, floor to ceiling. 

Next year, projections indicate that Fetch will handle approximately 11,304,190 cubic feet of packages. That’s enough to fill the typical leasing office to the rafters more than 14,130 times. Extrapolated data predicts that Fetch’s multifamily package volume will more than double by 2022 to 26,898,393 cubic feet – which could pack 33,623 leasing offices. By 2023, package volume will reach an estimated 47,882,270 cubic feet, or enough Fetch deliveries to bury more than 59,853 leasing offices. 

Now, imagine walking into one of those leasing offices and trying to find your desk.

Also, keep in mind that these projections are only looking three years into the future. The package volume trajectory is eye-opening. E-commerce will inevitably reshape the way apartment communities handle the receipt and distribution of residents’ online purchases, and the change is coming sooner than later.

more from

Three strategies every community should adopt this peak leasing season Peak leasing season is here and this time of year tends to be one of the most lively (and stressful) periods for the leasing office and your community… While the biggest time for leasing may be demanding, the accomplishments that come with this season make it all the more fulfilling and exciting! It’s important to take advantage of what your community has to offer in order to secure the leases needed to meet your community’s goals. With that being said, here are a few strategies every community should adopt to optimize occupancy rates this peak season:
3 strategies every community should adopt this peak leasing season

Peak leasing season is here and this time of year tends to be one of the most lively…

Bisnow
Reducing operating costs has always been a top priority for property managers and building operators. A proven way to do this is to focus on resident retention. A survey by Avail showed that when residents renew their leases, landlords can save up to $2,500 that would otherwise be allocated toward finding new renters and making updates to units for rent.
amenities residents can control through an app, like smart thermostats, direct-to-door package delivery, digital laundry and resident focused apps.
why amenities residents can control through an app are on the rise

Throughout the years, the advantages of app-based amenities have grown to be widely recognized for their ability to…

Scroll to Top