I recently wrote a blog that discussed the effect of Airbnb, the popular sharing economy service, on real estate. In that blog, I mentioned that Airbnb could prove to be a real threat to the real estate industry. The service is already disrupting the hospitality industry and has caused a bit of a stir in real estate, but its latest venture could drastically impact both industries.
According to a report from Fastcodesign.com, Airbnb is partnering up with a South Florida-based development company, Newgard Development Group, in order to construct an apartment building specifically designed for the sharing economy. Depending on the success of the building, Airbnb could roll out several more buildings throughout the country.
Dubbed “Niido,” the apartment building will exclusively host Airbnb rentals and feature 324 units. Niido is being constructed in Kissimmee, Florida.
Airbnb has been looking into making deals with apartment complexes for sometime, but has been limited by legal restrictions. By partnering with a development firm to build its own apartment buildings, the company can completely avoid those issues.
The Niido building is being specifically designed to accommodate the average sharing economy user. Niido will feature wide open common areas in the hopes that visiting travelers will interact and engage with each other; units will feature home offices that can easily transform into a spare bedroom; each unit will feature bathrooms and kitchens constructed of durable material that is also easy to clean; units will include small safes for travelers to store their personal belongings; each unit will work on a keyless entry system that only grants access during the duration of a visitor’s stay and tenants will be able to access both home-sharing and maintenance services through a single app. Newgard Development and Airbnb have truly pulled out all of the stops in order to provide a unique experience that will hopefully push the sharing economy industry forward.
With the Niido building, Airbnb hopes to create something of a small community. A portion of all standard Airbnb booking fees will go towards community projects, such as cooking and art classes. This will help to create a sense of community and offer a great experience and a better reason to stay in a Niido building.
Should Airbnb’s Niido building take off, the company could drastically encroach on the real estate industry. What are your thoughts? Do you want to see Airbnb make their own apartment complexes or would you rather they stick with what’s been working?