Properties & Leasing

Zipcar arriving at more retail centers

Posted by: Mini Vega Mini Vega
on August 28, 2013
READY TO ROLL: Zipcars at Kimco’s Bridgehampton Commons shopping center

READY TO ROLL: Zipcars at Kimco’s Bridgehampton Commons shopping center

Car sharing network Zipcar is increasingly adding shopping centers to its list of U.S. locations. Zipcar’s next two retail stops will be Kimco’s Mill Basin Plaza in Brooklyn and The Shops at District Heights in District Heights, Md., just outside of Washington, D.C. Kimco’s new agreements with the car sharing service will make two vehicles available at each of these centers to any customer with a Zipcar membership.

These are the third and fourth license agreements Kimco has completed with Zipcar. We also added stations to Bridgehampton Commons in Bridgehampton, N.Y., and Hampton Bays Plaza in Hampton Bays, N.Y., last year. Partnering with Zipcar is a new ancillary income revenue driver that Kimco has pursued in order to benefit our retailers and investors, while also supporting Zipcar in its effort to expand to urban outskirts and provide customers greater mobility and flexible transportation options.

For some background, Zipcar is the world leader in its industry, available in 24 U.S. cities, 300 college campuses, and 11 airports. It has driven car sharing to become a $400 million market in the U.S. Avis acquired Zipcar in January and the move has proven lucrative, with Avis’ stock continuing to rise steadily this year.

Car sharing has been a boon for the car rental business because it attracts young and urban customers who need wheels for large shopping trips and last-minute travels. The car share concept also appeals to the growing body of environmentally and cost-conscious consumers who want to avoid the hassles of car ownership.

These trends are creating a significant opportunity for retailers and shopping center owners. Zipcar stations help spur more shopping — customers can easily bring home large items and spontaneous purchases by car, rather than lugging them on a subway or bus. (As a side note, we are considering adding Zipvans to some of our centers in the future to better accommodate customers who buy large, heavy items.)

The Zipcar stations also help draw greater attention and traffic to our centers overall. The stations are positioned near the road to increase street visibility. Zipcar also lists its locations on its website, so customers can easily find the stations at our centers online.

Many locations specifically target seasonal or regional needs for Zipcar’s clientele. Kimco’s contracts for the Hamptons properties last from Memorial Day to Sept. 30, which allows Zipcar to tap into the many New Yorkers who are taking public transportation from the city to the Hamptons during the summer, and want a car when they arrive.

From Zipcar’s perspective, some of Kimco’s centers are ideal locations for Zipcar stations. “Zipcar is excited to be a part of a successful and expanding relationship with Kimco Realty in New York and beyond. We look forward to working with Kimco to add many more Zipcar locations at additional shopping centers along the east coast over the coming months,” Zipcar’s Regional Vice President, Nicole Mozeliak, told us.

Partnering with Zipcar has created a mutually beneficial relationship that lets us better support our retailers, create a new revenue stream for Kimco, capitalize on a trend that has staying power, and support Zipcar’s expansion. We’ll keep you updated on new developments on our blog.

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