Airbnb is one of the few online marketplaces that has raised the bar high in the world of e-commerce. In spite of all its great contributions such as providing fair prices and outstanding listings, the California-based company is evolving and is set on making more innovations.
The trusted community marketplace is currently adapting practices from the industry of real estate, leading to the establishment of “Niido Powered by Airbnb” in October. It is a co-branded apartment project by Airbnb and Newgard Development Group. The latter is a real estate company that offers real estate investments, construction, development, marketing, and sales. The collaboration is geared towards supporting home sharing and flexible living in communities across the Southeastern United States.
According to Jaja Jackson, Airbnb’s Director of Global Multifamily Partnerships, “This partnership shows how landlords, developers, and Airbnb can work together to create value for everyone and better serve tenants. The team at Newgard is leading the way and we’re thrilled to work with them. Together, we’re making it easier for more hosts to share their space, and giving guests access to more affordable options when they travel.”
Plans to reach the goal of having at least four apartment complexes under Niido by the end of the year are underway. Authorities mentioned that they will start construction for the first apartment building in the first quarter of 2018.
The first building will have 324 units and will be located in Kissimmee, Florida. The units will range from 750 to 1200 square feet in design. Though it is not yet confirmed, reports have suggested that other locations for the Niido project would be in Tampa, Fort Lauderdale, and Miami.
SilverPeak Real Estate, a multi-strategy investment platform, and Brookfield Property Partners, an alternative asset manager that owns, invests, and operates in real estate properties, have recently invested up to $200 million into the “Niido Powered by Airbnb” project.
The upcoming apartment building in Florida will receive the first $20 million from the investment.
What to Expect from the Niido Project?
The new units under the project will have quality features for tenants like the following:
- Doors will have keyless entry systems.
- There are shared common spaces.
- The tenants of Niido will sign annual leases.
- Tenants will have the rights to home-share individual rooms or even their whole unit through Airbnb for up to 180 nights per year.
- There will be an application that is fully incorporated with Airbnb.
The Niido application has the capability to let tenants remotely manage the guest stays by means of asking services from a ‘MasterHost’. A MasterHost will help out with items such as linen services and guest check-ins.
Tenants who choose to share their rooms or units will be part of the Friendly Building Program of Airbnb, which was launched in September 2016. The program lets landlords and hosts share revenues that are made from home sharing.
Newgard will be the one to own the buildings and Airbnb is just going to help out with the overall design concept and the services.
It Should Not Be an Issue
Harvey Hernandez, the CEO of Newgard Development Group is aware that a lot of people are misinterpreting the bold idea behind the Niido project. It is something that he wants to address really closely.
Hernandez and Jackson both stipulated that the “Niido Powered by Airbnb” project is not based on a hotel format because the experience is different. The hosts or tenants can provide customized experiences for each of their guests.
Another issue that centers around the establishment of Niido is the effect it brings to the apartment industry. Niido could probably alter the apartment business model and it will definitely have an impact on corporate housing unit reserves.
But according to Rick Haughey, the Vice President of Industry Technology Initiatives for the National Multifamily Housing Council, there is nothing negative about it. He added that “It has the potential to disrupt the apartment industry and potentially the apartment lease, which traditionally has been long term. This may bring about more flexibility with the lease.”
Airbnb is obviously up for a great start with its new real estate venture. Companies like the Association of Independent Hospitality Professionals and ThinkReservations, a firm that helps businesses increase their revenue and saves time, are on their way to back the trusted community marketplace.
Chris Lehane, Airbnb’s Vice President of Global Policy, was pleased to announce that the two companies will team up with them in order to make it easier for businesses offering bed and breakfasts to include their rooms on the platform of Airbnb. In this way, users will have plenty of choices for staying.
The establishment of “Niido Powered by Airbnb” is just the beginning for the trusted community marketplace. With the help of different investors, sooner or later, Airbnb will reach its prime in the apartment industry.