UNIVERSITY OF MARYLAND COLLEGE PARK - STUDENT HOUSING MARKET ANALYSIS June 2017
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
UNIVERSITY OF MARYLAND
COLLEGE PARK
S T U D E N T H O U S I N G M A R K E T A N A LY S I S
June 2017
AGENDA
June 2017
1 Planning Process
2 Underpinnings & Implications
3 Recommendations
4 Next Steps
5
P LAN N IN G P ROC ESS
PROJECT OBJECTIVES
Quantify unmet demand for undergraduate
on-campus housing
Identify off-campus market dynamics that will impact
the UMD housing system
Understand the demand for Fraternity and Sorority
housing and recommend a program that satisfies
their need
In the context of the 2014 Housing Master Plan,
provide recommendations that allow UMD to position
its housing assets to satisfy housing demand and
have the greatest impact on the advancement
of the University
P L A N N I N G P RO C E S S
S T U D E N T H O U S I N G M AR K E T AN ALY S I S
Strategic Asset Valuation Financial Analysis Demand Analysis
Demographic Analysis Student / Parent / House Corp. Survey
(Over 3,100 respondents)
Project Definition &
Housing Strategy
Existing Conditions Analysis Focus Groups
(60+ Participants)
Off-Campus Analysis
P LAN N IN G P ROC ESS
STUDENT HOUSING PLANNING
Get the Asset Right
Acquire Capital Advantageously
Operate to Maximize Institutional Interest
P L A N N I N G P RO C E S S
S T R AT E G I C A S S E T VA L U E A N A LY S I S C R I T E R I A
Inclusion Curriculum Enhancement
• Housing for all first and second-year • Direct integration of living-learning
students, and transfer students programs
• Housing for all fraternity and sororities • Enhanced & increased living-learning
who desire to have a chapter house programs
• Housing continuum discipline
Market Responsive Financially Prudent
• Unit mix • Occupancy Coverage Ratio (OCR)
• Competitive amenities increases with age
• Differential pricing • Debt Coverage Ratio (DCR) 1.0:1 to 1.2:1
• Housing market supplement • Public-private partnerships (P3’s) should
be considered where appropriate
UNDERPINNINGS & IMPLICATIONS
U N D E R P I N N I N G S & I M P L I C AT I O N S
THE UMD RESIDENT LIFE STORY
Undergraduate Academic profile of Campus Housing is an
Enrollment has grown students has integral component of the
13% since 2007 increased UMD Experience for 1st
and 2nd year students
Students’ housing Housing has been
decision is driven by Significant demand
for additional 100%+ occupied
proximity to classes, with an average
cost, and a quiet housing
waiting list of 538
environment. since 2012
Off-campus market UMD needs to
does not fully meet develop housing
students needs Unmet Demand that aligns with
for 1,400 beds market demand in a
multiphase program
Active off-campus
market targeting
UMD students with
an additional 500+ 2014 Housing
units under Master Plan Demo.
construction + Reno. decreases
bed count by 1,894U N D E R P I N N I N G S & I M P L I C AT I O N S
D E M O G R A P H I C A N A LY S I S
28,462
Total undergraduate
enrollment for fall 2016
4.20
Avg. incoming first year
student high school GPA
(Increase of 5%)
94%
Five year average
freshman retention rate
(Increase of 3%)
85%
Average six year
Increase in graduation rate
13% undergraduates
since 2007
12% Increase in transfers
since 2007
(increase of 5%)
Demographic data provided by University of MarylandU N D E R P I N N I N G S & I M P L I C AT I O N S
I M P O R TA N C E O F R E S I D E N T L I F E & S AT I S F A C T I O N
67%
Housing was an
important factor
in decision to
attend UMD
74%
Of Respondents
indicated on-campus
housing was at
least satisfactory
when compared to
other institutions
On-campus satisfaction is impacted by the aging facilities while off-campus
satisfaction is impacted by the lack of community and residential experience.U N D E R P I N N I N G S & I M P L I C AT I O N S
I M P O R TA N C E O F R E S I D E N T L I F E & S AT I S F A C T I O N
Living on campus…
88%
60+
Helped me adjust to life at UMD
81% Introduced me to new friends
Number of Engaged
Students who Believed
76% Provided me a sense of community
Housing was Enough of a
Priority to Attend a Focus
76% Made it easier to be involved in campus life
Group Session
75% Provided me with a safe, secure
“I wish housing was
environment
available all four years”
71% Provided me with convenient living options near classrooms
-Student Survey
Enhanced my overall Comment
70% experience
“I would have loved to live
66% Made me feel like a Terp on campus this year, but I
was waitlisted for housing
and not offered housing
64% Provided me with opportunities to get involved
until after I signed my
lease.”
60% Had a positive influence on my academic performance
-Student Survey
CommentU N D E R P I N N I N G S & I M P L I C AT I O N S
I M P O R TA N C E O F R E S I D E N T L I F E & S AT I S F A C T I O N
Satisfaction
Living Learning Programs are key to the UMD residential experienceU N D E R P I N N I N G S & I M P L I C AT I O N S
HOUSING SATISFACTION
Cambridge 87%
74%
Of on-campus
Leonardtown
South Hill
82%
81%
residents are
satisfied with Denton 79%
their living
conditions Ellicot 77%
North Hill 62%
Satisfaction Level of Students Living
on Campus by Community
77% Proximity to UMD Campus 64% Size of Unit
Satisfaction Proximity to UMD
Level of Factors 70% Amenities 61% Size of Bedroom
for Students Total Cost of
Living on Campus
67% Physical Condition 39% Rent +
Utilities
67% Access to Fitness Facilities
programmanagers.comUND ER P IN N IN GS & IM P LICATIONS
F R AT E R N I T Y & S O R O R I T Y L I F E
Living in a Chapter House Provided…
93% Sense of Community
85% Safe and Secure Environment
83% Enhanced Overall Experience at UMD
80% Introduced Me to New Friends
74% Provided Opportunities for Leadership Development
69% Cost Effective Living Option
programmanagers.comU N D E R P I N N I N G S & I M P L I C AT I O N S
EXISTING HOUSING PORTFOLIO
7
Residential Communities
9,475 Denton
Community Ellicott
Cambridge
UMD Owned Beds Community
Community
2,899
P3 Beds
1,272
F&SL Beds
North Hill
Community
South Hill Fraternity
Community Row
Dining/Community Facilities
Traditional
Semi-Suite
Full-Suite
South
Suite / Apartment Campus
Apartment Commons Graham
Fraternity & Sorority Crackers
programmanagers.comU N D E R P I N N I N G S & I M P L I C AT I O N S
EXISTING HOUSING PORTFOLIO
Gross Square Feet
Residential: 3.5M
Non-Residential: 10.8M
Average Building Age
Residential: 57
Non-Residential: 41
Average Building Renovation
Residential: 24
Non-Residential: 26
New Construction Value*
Residential: $170M
Non-Residential: $198M
* New Construction value is replacement costU N D E R P I N N I N G S & I M P L I C AT I O N S
EXISTING HOUSING PORTFOLIO
Campus housing is an integral component of the
UMD student experience.
Students’ awareness of functional obsolescence of
UMD housing facilities presents a potential occupancy
risk for the future.
The dynamic off-campus market is influencing
students’ housing preferences and expectations.
“ Many halls need to be remodeled,
they are so old, and bathrooms
are ugly and disgusting… Also air
conditioning during the summer “ Current dorms, while livable,
are below par. The price is high
“ My experience overall with
housing on campus is that it
was fairly poor (low quality,
broken elevators, old
for living in conditions that are
would be a nice addition… This cramped, and old. buildings - bad AC) and
dorm has potential of being really Renovation/new buildings would expensive. When something
nice because it's in a nice location greatly improve this problem. is more expensive you
on south campus, but since it's so
old it's hardly pleasant.
” ” expect a certain level of
quality.
”U N D E R P I N N I N G S & I M P L I C AT I O N S
FUTURE HOUSING
Reasons for Moving Off CampusU N D E R P I N N I N G S & I M P L I C AT I O N S
O F F - C AM P U S M AR K E T AN ALY S I S
Surveyed 8 purpose-
built properties
2-mile radius from
campus
Average rent is $823 -
$961 / month / student
Nearly all require
12-month lease
Amenity-rich market
Low vacancy rates
1,075 units in the
pipeline – not purpose-
built student housing 7,125
Beds Available
Within 1.6
Miles of
CampusU N D E R P I N N I N G S & I M P L I C AT I O N S
O F F - C AM P U S M AR K E T AN ALY S I S
The
The
Mazza Varsity University University
Domain Landmark Terrapin Row Enclave at
Grandmarc College Club View
8700
Park
Unit Amenities
Dishwasher
Furnished
Garbage Disposal
Granite Countertops
Cable
Internet
In-unit W/D
Microwave
Building Amenities
Compuer Lab
Concierge
Courtyard
Fitness Center
Game Room
Parking
Restaurants / Retail
Shuttle Service
Study Room
Utilities Included
78% 83% 72% 94% 83% 94% 83% 83%U N D E R P I N N I N G S & I M P L I C AT I O N S
SURVEY ANALYSIS
64% Live in
apartments or
condominiums
74%
Live with other
students
3.6
Average number
of bedrooms in
25% Live in single-
family houses or
duplexes
unit
74% $789 $518
Are satisfied Average per Average per person,
with their person, per per month rental rate
current living month rental in single-family
conditions rate in house
apartment
programmanagers.comU N D E R P I N N I N G S & I M P L I C AT I O N S
SURVEY ANALYSIS
Off-Campus
Housing Costs for
Students
Off-Campus Students
Average Personal
$789 Monthly Rent
$429
Average per person
+ $65
Average Personal
Monthly Utilities
share of security
deposits by
respondents
$854 Average Personal
Monthly Cost of
Housing
St ud io 1BR 2BR 3BR 4 BR
$ 80 0 $ 84 2 $ 733 $ 717 $ 730
Average Rent Students
Pay by Unit Type
The average monthly rent per person reported by
respondents was slightly less than the off-campus market
analysis.
programmanagers.comU N D E R P I N N I N G S & I M P L I C AT I O N S
SURVEY ANALYSIS
Off-Campus
Students Lease Terms
Electric 67%
Water 47%
Internet 42%
Cable 28%
83%
Gas / oil 28%
Students
Reported 12 Not applicable 21%
Month Leases Off
Campus Parking 21%
Trash & recycling 8%
Sewer 7%
Utilities Students Pay For
in Addition to Lease
Respondents that reported having a lease indicated that it
rarely followed the academic year or semester and typically
did not include many utilities other than trash pick-up and
programmanagers.com sewer.U N D E R P I N N I N G S & I M P L I C AT I O N S
MARKET DYNAMICS
1.5M
Sq. Ft. of Commercial and
Residential Development
in Construction and
Pipeline
$2B
Public and Private
Investment Dollars
1.2K
Number of New
Student- Focused Beds
Online in Last Two Years
= Projects in the Pipeline
10+
Food Destinations
Source: Greater College ParkU N D E R P I N N I N G S A N D I M P L I C AT I O N S
O P E R AT I N G PA R A D I G M S
Commercial Real Estate Higher Education
Focused on trends and fashion Grounded on permanent ideals
Entire student population must be
Niche market segments targeted
accounted for
Focused on non-financial and
Short-term capital repositioning
indirect financial benefits
Market cycle perspective Institutional life-cycle perspective
Asset specific underwriting Institutional / Portfolio underwriting
Landmark Domain College Park Emory University Tulane UniversityU N D E R P I N N I N G S A N D I M P L I C AT I O N S
O P E R AT I N G PA R A D I G M S
Commercial Real Estate Higher Education
Focused on trends and fashion Recruitment / Retention
Niche market segments targeted Developmental outcomes
Short-term capital repositioning Well-being outcomes
Market cycle perspective Relationship Outcomes
Asset specific underwriting
Highest + best use based on
Market Segment Solutions
residual land valueU N D E R P I N N I N G S & I M P L I C AT I O N S
HOUSING DEMAND
On-Campus Residents: Assumptions
– All students in residence – Based on Fall 2016
halls full-time undergraduate
– All students in P3 properties enrollment (26,350)
– Flat enrollment scenario
Off-Campus Residents: – “Occupancy Coverage
– Enrolled full-time Ratio” to mitigate risk
– Age 18-24 (undergrad)
– Renting off campus
(not with family, partner, or
dependent) Those not meeting this
– Paying more than $800 per criteria are excluded from
month in rent the demand analysisU N D E R P I N N I N G S & I M P L I C AT I O N S
HOUSING DEMAND
Traditional Pods
(S) $3,575-$3,825 / (S) $4,175-$4,425 /
Semester Semester
(D) $4,175-$4,425 / (D) $3,575-$3,825 /
Semester SemesterU N D E R P I N N I N G S & I M P L I C AT I O N S
HOUSING DEMAND
Studio APT
Semi-Suite Full Suite
(S) $5,675-$5,925 / (S) $6,175-$6,425 / (S) $7,175-$7,425
Semester Semester / Semester
(D) $5,425-$5,675 / (D) $5,565-$5,925 /
Semester
1BR / 1BA APT 2BR /Semester
1BA APT 4BR / 2BA APT
(S) $6,925-$7,145 / (S) $6,425-
(S) $7,675-$7,925 / Semester Semester $6,675 /
SemesterU N D E R P I N N I N G S & I M P L I C AT I O N S
HOUSING DEMAND
Recommended
Additional Beds
Freshman &
Sophomore
259
Junior & Senior 1,183
Fraternity &
Sorority Life
206
Total Demand:
1,648
The UMD Resident Life experience cannot be replicated off campus.U N D E R P I N N I N G S & I M P L I C AT I O N S
P L A N N E D B E D L O S S B Y C L A S S I F I C AT I O N
1,260 Denton
Community Ellicott
Community
Cambridge
Freshman + Sophomore Community
Bed Loss
634
Junior + Senior
Bed Loss North Hill
Community
-577 Beds
South Hill
1,894 Community
Total Bed Loss
programmanagers.comU N D E R P I N N I N G S & I M P L I C AT I O N S
HOUSING DEMAND & REPLACEMENT NEED
Demand Replacement Beds Total
(Demolition, Renovation, De-densification)
Freshman &
Sophomore
259 1,260 1,519
Junior & Senior 1,183 634 1,817
Fraternity &
Sorority Life
206 206
Total Need: 3,542
The UMD Resident Life experience cannot be replicated off campus.
programmanagers.comU N D E R P I N N I N G S & I M P L I C AT I O N S
SURVEY ANALYSIS
Physical Features UMD Should
Consider When Updating Housing
54% Convenient Location
49% In Room Wireless Internet Access
33% In Unit Full Kitchen
32% Full Sized Beds
26% Laundry Facilities in the Building
26% Individual Temperature Controls in Living Units
programmanagers.comU N D E R P I N N I N G S & I M P L I C AT I O N S
SURVEY ANALYSIS
Factors to Consider for Improvement
94% Keep Housing Costs Affordable
85%
Improve the Physical Condition of Existing
Campus Housing
82% Improve Amenities in Existing Campus
Housing
79% Modern and Attractive Living Environments
72% Change Existing Housing Policies
programmanagers.comRECOMMENDATIONS
R E C O M M E N DAT I O N S
S U M M A R Y O F R E C O M M E N D AT I O N S
Update and refine the phasing of systematic
renovation of existing residence halls
Align unit types with market demand
Develop up to 2,600 beds of new housing
– 1,350 beds on the Varsity Practice Field Site
– Up to 1,050 beds of suite or apartment units
– 200 beds of Fraternity and Sorority housing
Undertake a Strategic Plan for Fraternity and
Sorority Housing
– Determine the future scope and scale of F&S Housing with a
sustainable funding modelR ECOM M ENDATION S
NORTH CAMPUS
Location
– Varsity Practice Field
Program
– Maximize density
– 1,350 beds appears feasible
– Semi-suite or pod-style
units
Target Market
– 1st and 2nd Year students
Opportunities
– Student-athlete recruitment
– Adjacency to Athletics
– Students interested in
convenience, flexibility, and
high quality optionsR ECOM M ENDATION S
NORTH CAMPUS
Building 1
– Pod Style Housing
– Building Footprint: 15,300 GSF
– Assumed 330 SF/Bed
– Approx. 278 Beds at 6 Stories
– Expansion (1a)
• Footprint: 8,250 GSF
• Approx. 150 additional beds at 6
Stories
3 Building 2
– Pod Style Housing
– Building Footprint: 16,800 GSF
1a
– Assumed 330 SF/Bed
Dining 2a – Approx. 305 Beds @ 6 Stories
Facility
– Expansion (2a)
1 • Footprint: 9,000 GSF
2
• Approx. 160 additional beds at 6
Stories
Building 3
– Pod Style Housing
– Building Footprint: 24,800 GSF
– Assumed 330 SF/Bed
– Approx. 450 Beds @ 6 Stories
Site images are artistic illustrations and are not drawn to scale.CAP ITAL P ROJEC T TIM ELINE
2 0 1 4 H O U S I N G S T R AT E G I C P L A N
Hagerstown
Caroline
Cumberland Bel Air
-127 Beds
Carroll New North
La Plata Easton
-121 Beds Hill 450 Beds
Lot 1 Phase 1 Wicomico Worcester South Hill
Cambridge Chestertown
800 Beds (P3) -163 Beds -166 Beds Community Center
12,484 13,686 14,082 14,632 14,389 13,873
beds beds beds beds beds beds
2017 2019 2021 2023 2025 2027
2016 2018 2020 2022 2024 2026
12,487 13,248 13,214 14,324 14,600 14,287
beds beds beds beds beds beds
Practice Field
Dorchester Ellicott Denton Elkton Centerville
880 Beds
Lot 1 Phase 2 New Ellicott Triple/Quad New
Cecil
700 Beds (P3) 350 Beds Conversions Leonardtown
-400 Beds
Old
Leonardtown
-234 Beds
*Includes 2,899 P3 beds, Does not include F&SL beds
New Construction Vacate / Demolish HVAC / Maintenance / Reno Maintenance / RenoCAP ITAL P ROJEC T TIM ELINE
2 0 1 4 H O U S I N G S T R AT E G I C P L A N – B E D C O U N T
*Includes 2,899 P3 beds, Does not include F&SL bedsCAP ITAL P ROJEC T TIM ELINE
2 0 1 7 H O U S I N G S T R AT E G I C P L A N U P D AT E
Leonardtown
Replacement Ph I
550 Beds
Leonardtown
-634 Beds Ellicott
Practice Field- Ph I Triple/Quad
893 Beds Conversions
Worcester
Chestertown Easton
-166 Beds
Wicomico
Bel Air Centerville Elkton
-163 Beds
12,087 12,112 12,092 12,397 12,811
beds beds beds beds beds
2019 2021 2023 2025 2027
2018 2020 2022 2024 2026
12,073 12,061 12,106 12,376 12,325
beds beds beds beds beds
Dorchester Cumberland Hagerstown La Plata Denton
Caroline Leonardtown
Cecil Replacement Ph II
-127 Beds
500 Beds
Carroll
-121 Beds
Practice Field- Ph II
450 Beds
*Includes 2,899 P3 beds, Does not include F&SL beds
New Construction Vacate / Demolish HVAC / Maintenance / Reno Maintenance / RenoCAP ITAL P ROJEC T TIM ELINE
2 0 1 7 H O U S I N G S T R AT E G I C P L A N U P D AT E
*Includes 2,899 P3 beds, Does not include F&SL bedsNEXT STEPS
NEXT STEPS
STUDENT HOUSING PLANNING
Incorporate Feedback
Final Documentation
Institutional Commitment
– Ongoing Systematic Renovations
– Practice Field Development
• Detailed Program
• Rental Rate Analysis
– F&SL Strategic Plan
programmanagers.comUNIVERSITY OF MARYLAND
COLLEGE PARK
S T U D E N T H O U S I N G M A R K E T A N A LY S I S
June 2017
programmanagers.comYou can also read
