Student Rental Housing has become very lucrative. Most colleges and universities are in full capacities for last 5 years therefore developer and manager of student housing assets are seeing great return on their money, and it is only nine months occupancy but yet one year rental. In the 2018-2019 fall school year student housing new project was to have over 47000 beds in the US.
“The most experienced student housing developers we spoke to are now starting projects earlier to allow more schedule contingency and also making the hard decision to delay the start of construction for delivery the following academic year, rather than risk a late delivery,” Says Kambiz Merabi Managing Director of MOG LA
In many cases, new properties close to campus are drawing students away from properties farther away. Rents are still rising and most properties are on track to be fully occupied and extremely profitable. “Over saturation is more to blame than demand in most markets , ” Says Kambiz Merabi Managing Director of MOG LA
According to our research department report shows Student housing developers plan to open about 50,000 new beds for the fall 2019-2020 school year.
On average, properties located less than a half-mile from campus were 77.2 percent leased in May. That was up 66 basis points compared to the year before. The outlook is strong for 2019 and beyond, as developers plan to build fewer new beds. “Recent reductions of new deliveries to volumes at about half of the bullish years of 2013 and 2014 demonstrates market prudence and portents well,” Says Kambiz Merabi Managing Director of MOG LA
Mr. Kambiz Merabi’s Article/s Published October 20th, 2018 LA, has been Updated & posted at 1:01 PM PCT, February 3rd, 2019.
To contact on this story: Contact Gibran Escobar at MOG LA Office email@example.com , To contact the editor responsible for this story: Kambiz Merabi in MOG contact his assistant Fidel Hernandez, or call our LA Office at 818-817-0006
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