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Fall Lease-Up Cycle the Fastest on Record for U.S. Student Housing
“Student housing operating fundamentals are amongst the strongest of any commercial real estate sector,” Berkadia says in its newly iussued 2023 U.S. Student Housing Preleasing Report. With the Rocky Mountain states leading at 89% preleased, “the Fall 2023 lease-up cycle was the fastest on record while also achieving the highest year-over-year rent growth the industry has ever experienced.”
With new asset deliveries still trending below below pre-pandemic levels and Tier I universities enjoying robust enrollment growth, “operating fundamentals will only continue to strengthen,” the report says. “At a time when the investment community is focused on low-risk-profile assets, student housing continues to offer investors some of the best risk-adjusted returns of any asset.”
The new report includes prelease data by month, region and distance from campus, as well as the top 10 universities based on enrollment, including current prelease percentage rates, average effective rent per bed, and year-over-year changes.
Pictured: Texas A&M in College Station.
- ◦Lease
- ◦Sale/Acquisition
