Nelson Partners Briefly Discusses Purpose-Built Student Accommodation (PBSA) Investments

Nelson Partners Briefly Discusses Purpose-Built Student Accommodation (PBSA) Investments


For more than a decade, student housing properties have enjoyed a commendable popularity among savvy investors. However, this doesn’t mean that the investment approaches worked in this domain will be effective today as well. The modern student property market is vastly different from the past. Among other things, purpose built accommodation units have become quite predominant today. There are many companies present across the United States who specializes in the development of purpose built accommodation units, such as Nelson Partners. This company operates as a student housing developer. They develop, acquire, invest, and manage student housing properties.

Purpose-built student accommodation (PBSA) is designed, developed and managed for the purpose of delivering high-quality living experience to all the residents. This property type has established itself as one of the strongest variants in the contemporary student real estate sector and is driven by high demand from both domestic and international students. The typical amenities featured in these units include Wi-Fi, communal working spaces, gymnasium, and activities space, building management and security, and so on. As these properties are building specifically for the purpose of accommodating the students, they manage to tick all the boxes when it comes to what modern students are looking for in their living space. This allows PBSA options to encourage retention for the whole duration of the study period, and helps investors to enjoy a pretty hassle-free approach.

There are many advantages of choosing to invest in purpose-built student accommodation; here are a few of them:

High-demand offering: This accommodation type is particularly designed to meet the demands of modern, student rental market. Hence, it boasts of having modern amenities, layout, and design, which students for which students shall be willing to pay good rent.

Confidence in the market: Even with the uncertainties linked with the student property market amidst the Covid-19 pandemic, 2020 ended up being a record-breaking year for purpose-built student accommodation investments:

Better location: As multi-story PBSA usually needs less ground space; such developments are typically built-in prime city locations that are pretty close to the local universities. Nelson Partners, for instance, now have two new offerings near Western Washington University and University of Northern Colorado. This increases the chances of high yields and capital growth.

Rental guarantee: Credible developers often provide a rental guarantee period for new developers. This reduces the risk of investment whilst the development manages to establish its reputation in the local market.

Building management: Majority of the purpose-built student accommodation options have building management, maintenance and security. This helps the investors to enjoy an absolute hassle-free, hands-off experience.

People can benefit from below market rates, as well as the possibility of capital appreciation over the build period if they plan to invest in off-plan student property. Moreover, PBSA usually has a high retention rate, owing to the positive experience they offer to the students. These residential units are designed to encourage a sense of community.

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Mike John

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