Student housing operators are ignoring the calendar when it comes to pre-leasing for the following school year. Axiometrics reports that many property owners and managers began work toward filling their apartment homes almost immediately after students moved in this past fall.
Properties in 90 university markets among the AXIOStudent 175 reported some preleasing in October 2016, compared to 51 universities with preleasing activity in October 2015, according to Axiometrics’ new University Trends Report. Typically, pre-leasing season begins in November.
Nationwide, approximately 3.2 percent of privately owned beds were leased for Fall 2017, compared to 2.4 percent one year earlier.
Key to the sales pitch in October was offering discounted rents if they wanted to keep their room for another year. Students received e-mails from their property management company explaining the deal and providing a deadline to receive the early bird special, Axiometrics reports.
The likely result for this fall will be a situation similar to Fall 2016, which started strongly, but tailed off slightly toward the end.
University markets in the Northeast region are at the forefront of this early action, with three of the top five prelease rates (in markets with more than 1,000 privately owned, purpose-built beds) located there. Several Midwestern markets also are reporting strong early leasing.