The number of public-private partnerships (P3s) between seasoned student housing developers and universities is on the rise, and it isn’t too difficult to see why. Undergraduate and graduate student enrollment is growing at institutions across the United States, and at least a portion of the undergraduate population at many universities is required to live on-campus. This fact alone would suggest that institutions might be looking to add to their on-campus housing stock — and quickly, at that, if their current offerings won’t accommodate the number of new students entering campus each year.
The desire to move deftly and quickly, coupled with a difficult environment for construction financing, make partnering with a private developer all the more enticing for institutions. What better way to move forward on a project than with an expert in the space that can help navigate challenges — from financing hurdles, to supply chain or labor difficulties — and that already comes with a preferred group of designers, contractors and vendors ready to start as soon as they get the green light?
And it isn’t just institutions pressing for these projects. The current student population is actively seeking more on-campus living options, according to Julie Skolnicki, senior managing director with Greystar, making an expeditious development timeline even more salient.
“Student and parents are increasingly focused on campuses that offer a high-quality student life experience and compelling return on investment,” she says. “The demand for on-campus housing is further accelerated by an increased desire for the on-campus experience, proximity to academic resources and social amenities.”
“These on-campus supply and demand factors, along with high occupancy levels in the off-campus and shadow markets, have led top tier universities to increasingly look to P3 partners to leverage private market efficiencies and expertise to deliver large complex projects to meet their mission critical housing needs,” she continues.
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