Features

LeaseCon

To centralize or not to centralize? This is one of the hot questions in the industry today as more companies are making the move to centralize leasing and operations efforts. But what does it look like in reality? And is it the right move for your company?  A number of industry professionals weighed in on the topic at Student Housing Business’ fifth annual LeaseCon/TurnCon conference, which took place December 4-5, 2023 in Charlotte, North Carolina.  The panel discussion included Kendra Woodley, director of sales with The Scion Group; Phil Ginsburg, …

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ReflectionStudentGeorgiaTech

From a leasing perspective, the numbers are almost too good to be true. Pre-leasing levels for the upcoming academic year are off the charts — a statement which feels almost saccharine given the past several years have also topped the charts. And to add even further sweetness,  occupancy rates in general are peaking and rental rates are growing across most markets, with some hitting double digit growth — a feat in the current economic environment.  And as if it couldn’t get better, properties are leasing up earlier than ever. “The …

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Lawrence

Student housing’s strong occupancy rates and rent growth stand out as a bright spot when compared with the rest of commercial real estate sectors, many of which turned in a lackluster performance over the past year. Student housing rental rates at the nation’s top 175 universities increased an average of nearly 8 percent in the 2022-2023 academic year while occupancy in the fall of 2023 was 150 basis points higher than the average occupancy rate over the five preceding falls, according to Berkadia’s 2023 Student Housing Pipeline Report.  Pre-leasing heading …

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Annex-Memphis

In a way, the dynamics of public-private partnerships (P3s) are the same as they’ve always been.  “The reasons why universities elect to go the P3 route haven’t changed much,” says Michael Baird, managing director of municipal finance for RBC Capital Markets. “For many, the decision is made based on speed to market. This happens when other alternatives can take years — resulting in an opportunity cost of not being able to provide housing to students that need housing now, in addition to increased development expenses as construction costs continue to increase year …

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Mental-Health-Chart

Feelings of stress and anxiety are still prevalent among college students today, according to findings from the second annual Thriving College Student Index Report, which was released late last week.  The study was fielded by Ipsos and surveyed 25,000 students residing in communities managed by members of the College Student Mental Wellness Advocacy Coalition, which consists of 24 student housing companies. The survey was conducted in partnership with mental health non-profits including the ‘Hi, How Are You Project’ and The Jed Foundation.  The report showed that, while there has been …

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Stark-Garza

With competition from a growing supply of purpose-built student housing (PBSH) and student renters’ ever-evolving preferences driving costs, property owners in the sector must guard against excessive tax assessments. Assessors often treat this special asset class as a traditional multifamily development, while PBSH is designed specifically for university students. As such, the properties have distinct lease structures, design layouts, amenities, and services that differ from traditional multifamily properties and on-campus dormitories. This misclassification often leads assessors to select valuation metrics through mass appraisal that ignore the unique characteristics of this …

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International

The benefits of investing in and developing student housing abroad are much like the benefits of traveling or even studying abroad. It can open your eyes to other cultures, show you a different way of life and change your perspective on the “right” way of doing things.  “Our international footprint enables us to share best practices from around the world to innovate our developments,” says James Hunt, global head of real estate for GSA International.  But first, you have to understand the various global student housing markets to capitalize on …

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Bixby-College

It would be impossible to write a development or design article without mentioning the elephant in the room — the state of the capital markets and the current hurdles in securing financing of any sort, but especially for new development projects. While demand for new communities exists in many markets, getting projects to pencil is the tricky part. For those developments that can move forward, innovative architecture and design are being employed to make the projects as functional and efficient as possible. Out are some of the flashier amenities from …

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Sean Baird

Higher interest rates, softening cap rates, and an uncertain insurance environment are making it difficult for many student housing buyers and sellers to get deals done.  It’s important to understand that the overall student housing industry is performing very well, with occupancies and rental rates continuing to rise over the past couple of years. However, macro-economic factors like interest rate hikes are putting downward pressure on pricing and making this a more difficult deal environment. To illustrate the impact of these factors, consider these statistics: U.S. student housing sales closed …

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Ofer-Ohad

The National Multifamily Housing Council’s 2021 White Paper, titled ‘The Future of U.S. Student Housing Demand,’ predicted steady demand and the continued growth of the student housing market, with an 8 percent increase from 8.5 million beds in 2020 to 9.2 million by 2031. While this demand for student housing is promising, the path to developing affordable, quality student housing is far from straightforward, due to a combination of volatility in financial markets and a constrained construction industry. Nevertheless, these headwinds present unique opportunities for universities, colleges, developers, and investors …

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