BACK TO SCHOOL DURING THE PANDEMIC By Scott Sowers
FOUR INDUSTRY LEADERS WEIGH THE EFFECTS OF COVID ON RENTAL HOUSING ON OR NEAR COLLEGE CAMPUSES.
The ongoing effects of the pandemic on higher education has led to quarantine dorms, virus tracking apps and sequestering ill students in hotel rooms. College sporting events are still riding a roller coaster of cancelations and postponements. When the illness first struck in March, nobody was prepared as college campuses shuttered and students were sent home. “When the pandemic spread in the spring, 39 percent of our residents returned home as a result of university messaging fol- lowing the conversion of all universities to 100 percent online instruction and the closing of most on-campus residence halls,” says Frederick W. Pierce, President and CEO of San Diego-based Pierce Educational Properties. But the early dismissals soon gave way to a gradual and cautious reopening. “By May, only 30 percent were still at home,” says Pierce. “Between April and July, more than 97 percent still paid their rent.”
OPEN FOR BUSINESS All of Pierce’s student apartment communities are located
off-campus and all of them are currently open. Most of the firm’s inventory is housed in garden-style buildings that offer greater separation as compared to high rises or traditional dorms, which may lack private bathrooms or bedrooms. More than 99% of the
students who signed leases with Pierce for the 2020-21 academic year moved in as scheduled this fall and 99% have paid their rent. It’s a similar story at Atlanta-based PeakMade Real Estate.
“Our portfolio is fully open for business,” says Casey Petersen, COO. “The vast majority of our portfolio is private, off-campus apartments. Regardless of what any academic institution decides to do in terms of their method of instruction, demand remains strong.” Most of the schools in Peterson’s market are currently using
a “hybrid” model of instruction that blends classroom attendance with online sessions.
ADAPTING TO CHANGE Benjamin Modleski, President, Property Management, at
Chicago-based Core Spaces, is predicting a gradual return to how things used to be in the near future as new protocols and precau- tions are baked in. “I’d hate to think that this ‘new normal’ is here to stay,” he says. “If the current status continues for a while longer, we are much better prepared today. Our teams and our residents have learned to adapt with physical distancing, enhanced cleaning, virtual resident events and no-contact services have been refined.” Core is also making use of rapid testing centers within their build- ings in Tucson, Ariz., and Columbia, S.C. Being adaptable and employing science-guided commonsense has helped reduce the virus’s impact on community amenities. “We still have some amenities with limited access based on CDC rec- ommendations, such as reservation-based facilities like our fitness centers,” says Dan Oltersdorf, Chief Learning Officer, Senior Vice President, Campus Advantage, based in Austin, Texas. Like many other sectors of the rental housing industry, Olters- dorf is witnessing the virus accelerating changes that were already underway. “We have been forced to innovate,” he says. “From more virtual events and online community-building to our low-touch and drive-through move-ins. I think there are a lot of changes that are here to stay, not because of COVID but because of convenience.” Campus Advantage also ramped up internet speeds and broadened coverage in their properties to facilitate more online learning.
SAFETY DESIGN Pierce believes building occupancy and basic design schemes
will evolve to promote more safety and less risk of exposure by spreading things out. “The functional supply of on-campus housing has been reduced through de-densification, including the closing of residence halls that are not social-distance friendly, gang bathrooms and by reducing occupancy in individual rooms,” he says. He’s also looking for the eventual demolition of dormitories that have already been closed. “The off-campus student housing market will benefit with more demand being pushed off-campus in the short- and intermediate terms until campuses return to pre- COVID bed capacities,” he says. The importance of improved interior air quality has already started having an effect or remodels and new construction in the form of expanded use of HEPA filtration systems. Petersen agrees that the pandemic is also changing thought
patterns about how and where to locate housing near campus. “We think schools are learning quickly that their aging on-campus student housing stocks are reaching obsolescence,” he says. “We believe
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