Student housing linked to universities with elite football programs attract the best pricing and greatest demand from investors, drawn by the large and consistent enrollments, as well as the stable cash flows that these properties offer, according to the latest analysis from CBRE.
College football conferences are strongly correlated with student housing capitalization rates — a valuation measure used in commercial real estate to indicate investor interest (the lower the cap rate, the greater the appeal and value). CBRE analysis finds student housing at colleges with elite football programs trade at lower cap rates than properties serving colleges with lesser-quality football programs.
“Football works as a very effective marketing tool for universities and creates value for student housing properties. The strong football programs in Division I schools, and particularly in the ‘Power Five’ conferences, create national branding and prestige. In turn, these ‘f
