Edwin Lugo, vice president of FirstService Residential's High Rise Division

MIAMI—There's no doubt e-commerce is impacting retail and industrial commercial real estate. But what about multifamily? GlobeSt.com caught up with Edwin Lugo, vice president of FirstService Residential's High Rise Division, to get his thoughts on the multifamily management side of the e-commerce equation.

GlobeSt.com: How has the rise of e-commerce affected the multifamily condominium living?

Lugo: With more people embracing online shopping, the influx of packages coming through the front doors of multifamily buildings is a growing operational concern for these managed communities. According to the US Department of Commerce, Internet sales not only hit a record $315 billion last year, but is also expected to double by 2020.

It has become a year-round marathon to accept, organize and store everything in a secure manner for residents. And with the holiday shopping season rapidly approaching, condominium boards and managers must put systems in place now to be able to withstand the imminent flood of parcels over the next few months.

GlobeSt.com: What types of problems are managers encountering as a result of volume of e-commerce?

Lugo: For managers, it's more than just managing volume, but securing these deliveries as well. What used to be inexpensive items arriving by mail are now pricey electronics, jewelry and similar luxury gifts. These high- price purchases raise the stakes, and property management, front desk and concierge staff must take on the responsibility of guaranteeing their security.

GlobeSt.com: With the holiday shopping season around the corner, what can buildings do to manage the load?

Lugo: We've found that effective storage and delivery solutions utilize teamwork, technology and front desk innovations to keep up with e-commerce. For example, increasing the number of front desk associates during peak delivery times can alleviate some of the strain from package management and other tasks.

Of course, there are budget considerations to this arrangement, but they should be weighed against the potential costs if packages are not secured properly. Temporary investments in additional staffing may be the more prudent solution in the long run.

Another solution can come from a little remodeling and carpentry. For buildings that need more than the original 10'x10' parcel room it came designed with, boards may consider installing floor-to-ceiling cabinets behind the front desks that not only provide the lobby with an updated, elegant look, but also an additional means of storage.

Designating a multipurpose room for temporary storage during the holiday season can also be a viable answer to a building with a tiny parcel room. However, the board and residents should reach consensus on this solution, as it may interfere with the ability to host social events.

Instant Insights /

Multifamily Owners Gear Up for E-Commerce Rush

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