Bisnow: Building owners can benefit from home-sharing
Our President Ken Lowney joined Airbnb's Jaja Jackson on a exciting discussion for the future of Residential.
For Airbnb head of multifamily housing partnerships Jaja Jackson, home-sharing is one of many ways building owners can benefit from partnerships with residents. Residents benefit from the supplemental income while building owners get a slice of the profits.
During Tuesday's Bisnow residential event, Jackson, the keynote speaker, discussed Airbnb’s Friendly Builders Program with moderator Lowney Architecture founder and principal Ken Lowney. Jackson talked about why the program is increasingly popular among building owners and residents. “Newer developments in urban centers where the customer is professional, mobile and maybe a Millennial in tech or related scientific sectors tends to want the flexibility of home-sharing,” Jackson said. The average guest is about 38 years old, and more women are hosts than men. Hosts tend to be older than guests and senior women are the fastest-growing group of hosts and are the highest-rated hosts. Airbnb hosts tend to have a college degree and use Airbnb as supplemental income. Guests come from various demographics and income levels, according to Jackson. Jackson said a recent survey found about one-third of renters are interested in having home-sharing as an amenity while one-third do not care or do not know about it and another one-third do not want it at all. He said he expects if a new survey is done in the fall, the number of renters wanting home-sharing would move up to about 40%.
One way Airbnb is working with business owners is through its nearly one-year-old Friendly Building Program. The program came about after hosts were violating and continued to violate the terms of their leases or were unaware of the lease terms and hosted in their apartments when they should not have. The program provides a way for building owners to better understand home-sharing in a way that makes sense as a business strategy, Jackson said. The program provides property management tools and sets up rules for residents. Jackson said the program is built around four commitments: transparency, control, insurance and profit-sharing. Building owners receive a weekly report with information about which units are hosting and when guests are expected. The information-sharing provides building owners with more control because they can use that data to set caps on the number of nights each resident can home-share. Primary and liability insurance with limits of $1M also are included. Building owners set the profit-sharing amount, which Jackson suggests should be 5% to 15%. The program has been rolled out in 20 to 25 cities where laws are favorable to short-term rentals, and Airbnb is seeing additional interest from the owners of midsized and small buildings and REITs across the country. San Jose is among the cities to have an active Friendly Builders Program, and Equity Residential was one of Airbnb’s first partners. Jackson said the program has been successful at Equity Residential's Vista 99 in North San Jose. The property management team is involved and helps with check-ins and checkouts. Jackson said the owner set a cap and the profit percentage and decided to donate most of those profits to housing charities.
Profit-sharing through home-sharing need not be the only way building owners can partner with residents to increase revenue. Jackson said building owners can design their common areas to provide small office spaces for residents to use for additional payment. Owners also could meet the demand for farm fresh food by offering rooftop gardens with rentable space. “All of these types of opportunities are unlocked when you rethink your relationship with the resident, and you get a little bit more creative,” Jackson said. AvalonBay has allowed home-sharing at its San Francisco Market Street property, but has residents paying a fee for hosting. Since Airbnb's founding in 2008, more than 160 million guests and more than 3 million hosts have used the platform. Jackson said the company has doubled every year and is currently profitable with strong growth in core business and new areas like the multifamily housing sector. Airbnb recently launched its latest service, Airbnb Experiences, which offers guests the ability to meet with local experts who share interests or experience various aspects of a particular location. Jackson said eventually the platform will include flights and car rides.
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Hale Mahana Groundbreaking and Blessing
Today, the project site of Hale Mahana Collegiate Apartments had its groundbreaking ceremony and a traditional blessing from a Hawaiian Kahuna. Lowney Architecture's Ken Lowney and Brian Nee visited the site along with the Honolulu City Manager, University of Hawaii president, city council members, Laconia, and EDR.
The project, located at 2615 South King Street in Honolulu, Hawaii, will be home to nearly 600 students attending the University of Hawaii. At 14 stories high and with student amenities on the top floor, the project will have unparalleled views of the rest of the island. Additionally, the public will have access to retail shops on the first floor, as well as the 6,000 square feet of on-site public landscaping.
Foundation work is slated to begin in the next week or so. For more information and updated time-lapse pictures of the site, you can visit https://app.oxblue.com/open/EDR/skingstreet.
Exclusive: Huge Oakland Tower Plan Combines Housing, Office, and Retail
Publication: San Francisco Business Times
By Roland Li
Renderings: Jesse Duclos
The proposal is one of the largest among over a dozen highrise plans recently approved and proposed in Oakland. It would be the only one to combine residential and office space. No towers have yet started construction, but Lennar Multifamily's 1640 Broadway and Gerding Edlen's 1700 Webster St. have filed for building permits.
“We envision a vibrant mixed-use project along a major transit corridor that hits the trifecta of what Oakland needs right now,” said Ronnie Turner, a spokesman for Pinnacle Development Group and project consultant, in a statement. “Housing, office, and retail.”
In June, a pre-application was filed for a smaller 15-story tower at 1261 Harrison St., but the new, larger proposal will combine the adjacent parcel and span the northern half of an entire block.
Kwik Way Plans Receive Broad Community Support
Publication: San Francisco Chronicle
By Rachel Swan
Photo: Michael Short
After years of scrapped plans and benign neglect, Oakland’s moldering Kwik Way Drive-In is on the brink of demolition.
The midcentury diner, which over the last decade has intermittently shuttered and reopened on Lake Park Avenue, may soon be replaced by a five-story housing and retail development that will stand as tall as the nearby Grand Lake Theater. Though the project is still in its early stages, it appears to have near-unanimous support from a neighborhood where residents have quibbled for 12 years over what to do with the site.
“This site has been pretty controversial in the past,” said Councilman Abel Guillen, who represents the Lake Merritt district. “But you fast-forward to now, and we’re in this housing crunch, and this (property) is way underutilized.”