Vending Of The Future

Many real estate professionals have been approached by one vending company or another during their careers. While most of us have shrugged off these "vendors" as pestering annoyances. However, the future is looking very bright for the vending industry and is bringing more popular and exciting consumer products closer to everyone one. Kiosks such as this iPod vending machine are poping up all over the country.   Here is a demonstration video link from the manufacturer.

http://www.zoomsystems.com/videos/demo/zoom_demo.html

These machines are making the most popular consumer products even easier to purchase. The best part is these machines don't need very much space. In some cases, these machines can be placed inside walls so as to appear like a small store front inside any building or common area. If you can pull phone lines and power to the area, you are equipped to install one of these state-of-the-art retail stations.

Proactiv Solutions has had a successful run operating from common area carts or retail merchandising units (RMUs). National advertising campaigns aligned with Hollywood celebrities has helped with sustainability. However, this product typically is the top seller among mall kiosks and have provided with landlords with some stable income over the years. However, in order to combat the owner / operator issue that many consumer products face, they have developed a vending kiosk that brings the product even closer to the consumer.

Sony has also explored the non-traditional retailing strategies and brought its products closer to the consumer. Again, just as Apple and Proactiv, they decided to enter the vending world to bring their products closer to the consumer while reducing costs to enter the market. While you can't purchase computers or other large electronic equipment from the machines, they do carry mp3 machines, headphones, ear buds and other smaller electronics.

Many other major retailers and consumer products are entering the vending business to shrink the supply chain. This means that more venues will be attractive to vending type facilities whether it be in a major high-rise office building, shopping center, street corner, etc... The sky is the limit to this type of service and provides landlords with another non-traditional revenue stream.  Also, these types of opportunities require very little or no cost to the landlord.  

Who's Pursuing Ancillary Revenue?

Real estate owners or managers are constantly looking at ways to increase the value of their property. Whether the property is your own home, an apartment complex, industrial warehouse, office high rise or multi-level retail destination, everyone wants to make sure that their property is worth more today than it was yesterday. Pursuing ancillary revenue is one way to do that.

Real estate ancillary revenue can be ambiguous. The simple reason being is that there is no clear definition on the subject. I define it as any revenue that is generated from your property that is ancillary to your core business. If your core business is leasing apartment complexes, then any dollar that is generated that is not leasing to a new residential tenant, would be considered ancillary revenue. I've also heard it described as: specialty leasing, new business development, local leasing, etc... Also, the fact remains that there are so many ways to make money from your real estate that don't include your core business, no one specific definition can suffice. Its difficult to some up a job description for something that can easily have thirty different responsibilities.

Therefore, I'm curious to know who in the real estate world is pursuing ancillary revenue. If you are pursuing the opportunity, what areas are you pursuing and why? Perhaps the why is understood but many developers and property managers I've talked to in the past believe ancillary revenue is more of a "thorn in my side" or "more cost than a reward". I would answer any nay-sayers this way. If you spend $1 pursuing ancillary revenue but received $2 for your efforts, is there any reason why you shouldn't consider the opportunity? No. There will always be a cost to pursue new business. However, if you generating more revenue through non-traditional channels while maintaining costs than the answer is clear. Ancillary revenue should always be considered....ALWAYS!!!

I challenge developers, property managers across the globe to see how much money their real estate is really worth. Coming out of a comfort zone to learn new skills can reap huge rewards at little or no cost. As with any new venture, a learning is to be expected. Time and research will pay off in the end. Dialogue also seems to spawn creativity. The creative person will able to see what lies underneath each stone that is turned. I enjoy pursuing ancillary revenue because it seems to me that every day is different. With countless revenue options to pursue, ancillary revenue can spice up even the most boring of days.

"WindCube" Targeted For Urban Commercial Real Estate

Renewable energy is becoming more popular and affordable. The benefits to transferring your energy requirements to a renewable energy source have been well documented. When sourcing energy from the wind, the huge windmill type structures are what come to mind. Yesterday, at the WindPower 2009 industry trade show a new product and design geared toward the commercial real estate industry was unveiled.  

The WindCube, is a 22-foot-tall footprint intended to be installed on rooftops that can supply energy to a single commercial or industrial site.  The initial objective of the "Cube" is to create wind power in an urban setting. The standard towering turbines we've seen on TV or at "wind farms", can't be utilized in an urban setting. Typically, there isn't enough room for the turbines to rotate to generate adequate energy.  Northeast Ohio based, Green Energy Technologies will manufacture the state-of-the-art turbines.

The cost for these units can range up to $300,000 for one cube. However, through tax tax credits and incentives, about 70% of the set-up costs would be returned. Therefore, it is estimated that the balance of the purchase would be paid back in approximately, 2-3 years. Since the initial target market is urban buildings, the commercial real estate industry will need to take notice.

Here is an animation link on how the "Cube" works:  

http://greenenergytv.com/Watch.aspx?v=e2db816bdb430fe6

Entering the energy business is already an income source for some landlords.  As the costs for infrastructure continue to decline, renewable energy for commercial buildings and their tenants will become more mainstream.  While the environmental benefits are acknowledged, the revenue streams from this opportunity are significant.  Depending on the application and location, ancillary revenue generated can equal into the millions of found revenue.  

I am not affiliated with Green Energy Technologies in any way.  I am a proponent of new technology that can help commercial real estate owners drive revenue to their bottom-lines.  I believe this footprint could be the wave of the future as costs decrease and infrastructure shrinks.  One thing is clear.  This technology will make Wind Energy more affordable to a larger audience and can be a huge ancillary revenue source for commercial property owners across the world.