Apr
24

What’s the Key to Student-Housing Success?

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college housingStudent housing is very management intensive, and it’s very unforgiving for those who aren’t prepared, DTZ’s senior managing director Justin Glasgow tells GlobeSt.com. We spoke exclusively with Glasgow and several other student-housing experts about the most pressing issues the sector is facing. Stay tuned for a complete feature story about the student-housing sector in GlobeSt.com’s sister publication Real Estate Forum.

GlobeSt.com: What should our readers know about this sector?

William Talbot, CIO, American Campus Communities: The student-housing sector is going through a dynamic period as the sector experiences the continued maturation and institutional acceptance of the space. During the ’60s, ’70s, ’80s and early ’90s, student housing was neglected by mainstream investors as not a desirable property type in which to invest based on incorrect stereotypes of an “animal house” tenant base and the incorrect belief that students and parents would not pay for quality product near campus. As a result, there was barely any modern student-housing product delivered to students during that period. By the mid-’90s, developers discovered the need for purpose-built off-campus student housing, and the market easily absorbed new developments due to pent-up demand and a lack of quality product available to them, which increased investor interest. The stability of cash flows became more evident after ACC became the first student-housing company to go public in 2004, and our investments further exhibited the strong demand through strong rental-rate growth and occupancies.

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