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New investors make student-housing sector more competitive
Research - NOVEMBER 12, 2021

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New investors make student-housing sector more competitive

by Andrea Zander

After a tumultuous year in student-housing commercial real estate, the return of students to colleges and universities is providing a boost to the sector, with increased investor interest and demand from, not only traditional student-housing investors, but new entrants as well.

In 2020, the total U.S. transaction volume for the sector was $6.25 billion, with only $1.68 billion in the first half. In the first three quarters of 2021, the market has seen $4.85 billion in transactions, with $2.52 billion in the first half of the year. Teddy Leatherman, senior director with the JLL Capital Markets National Student Housing team, stated that she anticipates the fourth quarter of 2021 to be exceedingly busy, as during the past four weeks, the team has conducted more than $1.5 billion in broker opinion of values for student housing assets.

“With how compressed multi-housing cap rates have become, investors are focusing on yield,” said Leatherman. “Right now, we are seei

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