Preiss participated in the student housing panel, which addressed such points as the factors driving the student housing sector's brisk pace and whether or not this level of activity is sustainable. Joining Preiss on the panel were Scott Duckett, Executive Vice President and Chief Operating and Business Officer with Campus Advantage, Jaclyn Fitts, Associate Director of Student Housing with CBRE Capital Markets, and Doug Sherman, CEO of Innovative Student Housing. Roger Phillips, CEO and Principal with TEXLA Housing Partners, LLC served as moderator.
The Preiss Company currently operates in eight states (North Carolina, South Carolina, Georgia, Alabama, Maryland, Illinois, Texas, and Pennsylvania)
“There are several things in the industry that are creating the perfect storm in student housing,” says Preiss. “The steady growth of student enrollment, readily available cheap debt, and sustained rental rate growth are just a few. We’re also seeing 10-year Treasury bond rates at record lows.”
Preiss says that for most of the 2000’s, large garden projects with bed/bath parity and high-dollar amenities dominated the market. He says that there is now a push for infill, high-dense urban student properties with structured parking, and he foresees the market sustaining this current level of growth.
“The [student housing] market is moving fast and furious right now and a lot of development is going on,” says Preiss. “The companies/properties that will thrive are the properties with very good operators. Those properties are the ones that will be able to survive when the markets hit saturation.”
Preiss says that anyone interested in entering the student housing industry should exercise caution on the operating side, as there have been many conventional, multifamily players who “stick their foot in the water” because on the surface, the industries seem similar. He suggests companies hire established student housing operators rather than opt for self management.
“The future holds a lot of opportunities, especially in development,”
About The Preiss Company
The Preiss Company is currently the 5th largest privately held owner and manager of student housing in the country and the largest woman-owned student housing owner and provider in the nation. For more information, visit www.tpco.com.
Amy Barger, Marketing Director
The Preiss Company