Student Housing Business is the voice of the student housing industry.
Issue link: https://studenthousingbusiness.epubxp.com/i/488341
SECOND-TIER MARKETS MARCH/APRIL 2015 STUDENT HOUSING BUSINESS .COM 100 World Report. While the univer- sity houses 40 percent of students on campus (nearly double the national average) a dearth of stu- dent options off-campus results in a healthy on-campus housing waitlist. The only student hous- ing competitive community in the marketplace lacks purpose-built amenities, community spaces, and was poorly located comparable to the development site. The lack of other housing options and the premium site location allowed the developer to construct the prop- erty with an aggressive 9 percent capture rate. A student survey conducted as a part of the feasibility assessment provided statistically valid data that reinforced initial fndings. In a market without privatized off-campus housing, it is critical- ly important to understand how much education of the market- place will be required to maxi- mize ROI. With project feasibility having been successfully demonstrated, the lease-up process by Campus Advantage and the Hudson Companies resulted in 100 per- cent occupancy for fall 2014. conclusIon While signifcant opportunities for success are available at second and third tier institutions nation- wide, new entrants to the student housing space should ensure that their feasibility analysis includes more than just raw data about the off-campus rental market. A complete analysis includes both development and operations benchmarking and budgeting, drawing off of proxy case studies from markets with similar uni- versities, demographics, and/or geographies. Further, the success- fully analyzed opportunity will also consider college or university strategic planning. Particularly at smaller community colleges, the impetus is strong to provide on- campus housing, to collect hous- ing fees from residential students, and to increase tuition revenue from out-of-area students. Thus, in these markets, it is exceedingly important to maintain strong uni- versity relationships. When these considerations are weighed how- ever, the path to success in untest- ed markets becomes clear. SHB Jonathan Bove is vice president for business development and consulting services of Campus Advantage. ENRICHING LIVES AND STRENGTHENING COMMUNITIES Architecture Interior Design Landscape Architecture Engineering bkvgroup.com STUDENT LIVING Inside a unit at Hudson Lofts, near PSU Behrend in Erie, Pennsylvania. What is your current student status at Penn State Behrend? Average Reply by Housing Selection: [SH Competitor – Name Redacted]: $600 Another off-campus apartment complex: $645 By myself in a single family home, condo, or townhouse: $604 With roommates in a single family home, condo, or townhouse: $445 At Parents of other relative's home: $162 *8 respondents indicated they live at home for free "At Parents of other relative's home" – Non-zero replies: $420 Overall Average, including zero-sum rents: $496 Overall Average, without zero-sum rents: $628