Student Housing Business

JUL-AUG 2018

Student Housing Business is the voice of the student housing industry.

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DELIVERIES July/August 2018 50 Fall 2018 Delivers 45,000 New Beds Strong pre-leasing, high occupancy and investor interest fuel a continued development boom in student housing. By Sarah Foronda, Matthew Chase and Max Worobow O Over the past five years, student housing development has maintained a robust supply pipeline of close to 45,000 beds per year spread across approximately 100 development projects (per year). 2017 was no exception with over 50,000 beds delivered and 107 development projects completed. Looking forward to fall 2018, the industry is expected to deliver just under 95 projects totaling almost 45,000 beds. Several factors contribute to this trend including strong preleasing, high occupancies, investor interest and devel- opment trends. Last year, the average property size was 153 units with 457 beds while this year the average has gone up with an average property size of 170 units and 484 beds. In addition, new construction has continued to rise. In 2017, 43 garden-style buildings and 16 high-rise build- ings were delivered while over 100 garden-style buildings and over 50 high-rise are expected to be delivered in 2018. Demand for housing close to campus remains strong, with the average being less than two miles from the campus core. Eco-friendly features and construction have influ- enced developers to meet LEED standards. Highly ame- nitized projects have continued to meet resident expecta- tions. Popular amenities include multiple study rooms, fitness centers and resort-style pools. Although some markets have seen a decrease in enroll- ment due to lack of student interest and regional current events, the student housing market has maintained a posi- tive outlook overall. The forecasted development pipeline is expected to stay strong with an estimated of 40,000 to 50,000 beds and nearly 100 projects delivered each year. According to Axiometrics, the top three markets anticipat- ing the most beds for fall 2018 are Florida State University with over 2,700 beds, Texas A&M University with over 2,487 beds and Clemson University with over 2,300 beds. FourPoint analysts are currently tracking 2019 deliveries of almost 73,000 beds, but do not anticipate that all will be delivered in 2019, with the balance falling to 2020. Some of the most active developers in the space include Core Spaces, who is expecting to deliver five projects, and Landmark, expected to deliver four projects in the upcom- ing year. SHB Matthew Chase is senior financial analyst, Sarah Foronda is real estate coordinator, and Max Worobow is an intern at FourPoint Student Housing Investments, based in Austin, Texas. University Off Campus On Campus Total Florida State University 2,707 2,707 Texas A&M University 2,487 2,487 Clemson University 686 1,665 2,351 University of Texas at Arlington 1,282 536 1,818 University of Washington 1,773 1,773 Arizona State University 775 956 1,731 Pennsylvania State University 1,261 412 1,673 University of South Florida 542 1,100 1,642 California Polytechnic State University 96 1,475 1,571 Virginia Commonwealth University 1,518 1,518 University of Central Florida 1,495 1,495 University of Texas at Austin 1,483 1,483 East Carolina University 1,283 1,283 University of Michigan 1,247 1,247 University of Oklahoma 1,231 1,231 Indiana University 1,228 1,228 Northern Arizona University 589 636 1,225 Louisiana State University 1,211 1,211 University of Mississippi 1,186 1,186 Utah State University 785 380 1,165 Colorado State University 1,165 1,165 University of Minnesota 1,157 1,157 University of Texas at Dallas 1,080 1,080 Syracuse University 1,079 1,079 University of Massachusetts - Boston 1,077 1,077 Iowa State University 1,062 1,062 University of Tennessee 1,034 1,034 Miami University 404 620 1,024 Source: Axiometrics, July 2018 FALL 2018 DELIVERIES

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