From The Magazine

Financing student housing might not be as bad as you might think. While the capital markets are in flux, purpose-built student housing has some of the strongest fundamentals in commercial real estate going for it. Robust pre-leasing, very healthy occupancy and rental rate increases are making the passet class attractive to lenders. The problem: getting today’s terms to pencil on some projects. “Borrowers should be prepared for lower leverage, higher pricing and fewer options to choose from when seeking financing,” says Timothy Bradley, founder of TSB Capital Advisors and principal …

It’s a good time to operate student housing. Who knew anyone would be saying that after a pandemic that shuttered schools and many housing facilities just two-plus years ago? But it’s true. Occupancy is high, rents are growing and demand is through the roof.  Nearly 97 percent of student housing beds available for the fall 2022 semester were occupied in September, according to the National Student Housing Report from Yardi Matrix. The study further notes annual rent growth compared to the 2021-2022 academic year was 4.1 percent.  Of course, student housing operators …

Health and wellness remain as important as ever to students. It’s simply part of who Gen Z is. They take care of their minds, bodies and the environment.  Student housing operators know this, which is why they continue to emphasize fitness spaces. “Amenities, location, safety and accessibility are all a large part of what draws in students and their parents to a select property,” says Michael Kenny, segment manager of multi-unit housing, corporate and wellness for Life Fitness, a commercial fitness equipment manufacturer and seller. “Within the amenity offerings, fitness …

July 1, 2021, was a big day for colleges, student athletes and any company that wanted to partner with said athletes on endorsement deals. This was the day the National Collegiate Athletic Association’s (NCAA) NIL — Name, Image and Likeness — rule went into effect in many states (who had to pass legislation allowing it), permitting student athletes to earn money by selling their, you guessed it, name, image and likeness.  “July 1, 2021, marked the launch of NIL and it couldn’t have been more dramatic,” says Matt Pavlick, president of …

The cancellation of the NMHC Student Housing Conference — where many dealmaking meetings are held — took some wind out of the student housing investment sales market this fall. Activity was a little slower during the third quarter due to changes in the capital markets climate, but is expected to pick up as the year draws to a close and more sellers bring properties to market.  “August was a little bit slower, but now that we have the rent rolls for fall 2022 we are seeing a lot of assets …

“Last year, we were concerned with COVID-19, and this year, we’re concerned with transactions,” begins Donna Preiss, founder and CEO of The Preiss Co. The sentence which perfectly encapsulates the status of the industry at the dawn of the new academic year. In many ways, the outlook is finally bright after several turbulent years, particularly as it relates to the all-important fall move-in and occupancy. Pre-leasing levels are largely at an all-time high; rental rates are rising without pushback; and this fall saw a return to traditional move-in protocols. Just …

Tim Smith, managing partner and co-founder of Horizon Realty Advisors, says his firm has a different take on off-campus student housing. The company entered the sector many years ago by acquiring a conventional multifamily property located near a university that appealed to students, faculty, staff and local residents. Entering the sector through a hybrid approach turned out to be a sweet spot for the firm. Today, the Seattle-based company has approximately 14,000 beds of student housing under ownership and relies heavily on its management and operations team to successfully run …

Student housing operators have always embraced furniture that can stand the test of time. Students can be a rough and tumble bunch, and experience (and budgets) dictate that it’s typically better to spend a little more up front for pieces that will last.  The pandemic has taken this trend to a new level, however. First, there is the increased emphasis on sanitation. Then the fact that students are spending more time in their units and communities, particularly as hybrid learning and online classes persist. Finally, there are supply chain issues …