Slow Student Housing Delivery Means Big Gains For Landmark
Student housing is one of the most stable, secure investments developers can make, insulated from some of the drivers of demand that other real estate sectors are subject to. And yet development is down. Find out why at Bisnow’s Annual Student Housing event on June 14 in Philadelphia.
Landmark Properties, guided by CEO Wes Rogers (shown here at a previous Bisnow event), is responsible for developing $2B of student housing. The company's in a unique position, since there's less development overall. Several new entrants into the market stubbed their toe, Wes says, either not delivering on time or building communities that failed in the marketplace.
One reason for the overall fewer number of beds delivering is that capital is smarter, and investors are more selective about which deals they’ll do. But when deals happen, they’re larger than they have been in the past.
The biggest driver is that today's students prize location above almost everything else. They want to be very close to campus, so the old model of building garden-style communities three miles from campus won't work anymore. Wes says he’s focused on developing high-quality pedestrian-friendly infill projects, and cottage-style developments close to campus.
Wes is particularly excited about the growth of College Station, TX. Enrollment at A&M University is increasing, and a new engineering school will likely bump it up even more. Landmark has two properties under development there: the Retreat and the Standard.