January 13, 2012 Key Contact: Jim Arbury VP, Student Housing jarbury@nmhc.org Other NMHC Staff Contacts: Douglas M. Bibby President Cindy Vosper Chetti Senior VP of Government Affairs Elizabeth (Betsy) Feigin Befus VP, Employment Policy and Counsel Matthew Berger VP, Tax Lisa E. Blackwell VP, Housing Policy David Cardwell VP, Capital Markets and Technology Jeanne McGlynn Delgado VP, Business and Risk Management Policy Kimberly Duty VP, Communications Eileen C. Lee, Ph.D. VP, Energy and Environment Ronald G. Nickson VP, Building Codes NSHC 2011 Income-Expense Analysis Supplement: Potential Rent, Concessions and Vacancy Loss For years, off-campus student housing lenders and investors have been challenged by a lack of detailed industry performance data. Since 2010, the National Student Housing Council (NSHC), an affiliate of the National Multi Housing Council (NMHC), has worked with student housing developers to collect and analyze financial data for performance benchmarking purposes. This report is a follow up to NSHC s October 2011 Student Housing Income and Expense Benchmarking Survey. It examines additional data submitted for the original report, giving industry stakeholders insight into how efficiently the student housing market operates. New data points include gross potential rent, gain/loss from lease, concessions, and vacancy loss. In addition to a per bed breakdown of the information, the results also have been tabulated by property type, building age, and geographic region. Key takeaways from the financial analysis include: On average, student housing properties netted 88.9 percent of their gross potential rents on a per bed basis after concessions and vacancy losses. Properties in the Southeast had the strongest regional performance, taking in 90.8% of their gross potential rents, on average. Although newly constructed student housing properties, on average, spent more on concessions and had higher levels of vacancy losses, they netted 10 percent to 14 percent more dollars per bed than their older vintage counterparts. As the sector has grown and more professionally managed players have entered the space, revenue management strategies have increasingly shifted toward a per-bed rather than per-unit leasing model. Roughly 84.4 percent of survey respondents indicated that they leased by the bed, which corresponded to lower levels of concessions and vacancy losses, on average. This document may not be reproduced or retransmitted electronically, in whole or in part, without permission from the National Multi Housing Council.
NSHC 2011 Income Expense Analysis Supplement: Potential Rent, Concessions and Vacancy Loss A powerful combination of positive demographic trends and emerging business opportunities is spurring dramatic growth in the student housing market. More than three million high schoolers are expected to graduate every year until the 2018 2019 academic year, causing a surge in enrollment at many colleges and universities. This increased demand for more beds to accommodate growing student populations is creating new opportunities for apartment firms to gain scale in what was once considered a niche market, particularly as many colleges and universities increasingly move to privatize on campus housing. However, for years, off campus student housing lenders and investors have been challenged by a lack of detailed industry performance data. Since 2010, the National Student Housing Council (NSHC), an affiliate of the National Multi Housing Council (NMHC), has worked with student housing developers to collect and analyze financial data for performance benchmarking purposes. In October 2011, NSHC released its second Student Housing Income and Expense Benchmarking Survey. As a follow up to that survey, additional information recently was extracted from the data submitted on 321 properties, accounting for 177,905 beds. The new analysis focuses on a series of balance sheet line items that offer insight into how efficient the student housing market is at capturing full rent potential: Gross Potential Rent Gain/Loss from Lease Concessions Given Vacancy Loss In addition, the supplemental performance data also has been tabulated using the following metrics: Leasing model (by the bed vs. by the unit) Age of property (2003 to present; 1998 to 2002; 1997 and before) Each table includes more detailed financial information about the market s weakest and best performers, identifying information for the 10 th, 50 th, and 90 th percentiles, along with the average for each metric. Moreover, some limited geographic analysis is included. From this new data set, student housing developers, lenders, and investors gain valuable information about emerging market standards, helping them to better evaluate business opportunities and performance benchmarks. For example, a broad spectrum analysis of the data revealed the following three takeaways: On average, student housing properties netted 88.9 percent of their gross potential rents on a per bed basis after concessions and vacancy losses. Properties in the Southeast had the strongest regional performance, taking in 90.8% of their gross potential rents, on average. NSHC White Paper: Student Housing Gross Rents, Concessions and Vacancies 1
Although newly constructed student housing properties, on average, spent more on concessions and had higher levels of vacancy losses, they netted 10 percent to 14 percent more dollars per bed than their older vintage counterparts. As the sector has grown and more professionally managed players have entered the space, revenue management strategies have increasingly shifted toward a per bed rather than per unit leasing model. Roughly 84.4 percent of survey respondents indicated that they leased by the bed, which corresponded to lower levels of concessions and vacancy losses, on average. While continued research is needed, this supplemental report contributes significantly to the available pool of financial performance data available specific to the student housing market. NSHC will continue to track these metrics, which will help grow a more robust benchmarking system. Useful Definitions: Gross Potential Rent is defined as the total rent that could possibly be received if all units were fully rented at the rate stated. Gain/Loss to Lease is typically defined as the differential in actual rent to potential rent due to a number of factors, including shorter term leasing or additional amenities. Concessions are incentives granted to renters during the lease up process and include rent reductions or other types of incentives such as credit cards or televisions. Vacancy loss is the amount of rent lost by leaving a unit or bed vacant. This category excludes units or beds given to on site employees. Additional Notes: The information for this report was gathered from data submitted for the trailing 12 month time period ending in the spring of 2011. NSHC White Paper: Student Housing Gross Rents, Concessions, and Vacancies 2
Full Survey Results The following section contains the full data set, which is all calculated on a per bed basis. The tables are first organized nationally and by region and then further broken down by leasing type and property age. In addition to dollar figures for each metric, each section contains tables showing the percentage of gross market rent each per bed dollar figure represents. National Results All Properties Gross Market Rent $3,705.62 $5,868.54 $8,956.21 $6,208.22 Gain/Loss to Lease ($281.04) ($6.33) $74.86 ($70.62) Concessions ($325.39) ($31.92) $0.00 ($119.20) Vacancy Loss ($1,330.64) ($353.29) ($43.50) ($621.89) Note: Dollar figures are per bed; n = 327 properties, 179,279 beds All Properties Gain/Loss to Lease 4.50% 0.10% 1.20% 1.00% Concessions 4.70% 0.50% 0.00% 1.70% Vacancy Loss 22.20% 6.20% 1.00% 9.40% Note: Figures are a percentage of gross market rent; n = 327 properties, 179,279 beds National Results: By Leasing Model By the Bed Properties Gross Market Rent $3,635.01 $5,728.69 $8,708.14 $5,931.38 Gain/Loss to Lease ($251.16) ($3.08) $85.37 ($50.38) Concessions ($269.69) ($15.02) $0.00 ($106.72) Vacancy Loss ($1,530.11) ($340.15) ($43.33) ($647.79) Note: Dollar figures are per bed; n = 276 properties, 159,057 beds NSHC White Paper: Student Housing Gross Rents, Concessions, and Vacancies 3
By the Bed Properties Gain/Loss to Lease 4.30% 0.00% 1.50% 0.80% Concessions 4.60% 0.30% 0.00% 1.60% Vacancy Loss 23.40% 6.40% 1.00% 9.80% Note: Figures are a percentage of gross market rent; n = 276 properties, 159,057 beds By the Unit Properties Gross Market Rent $5,075.04 $6,852.20 $10,929.39 $7,761.81 Gain/Loss to Lease ($410.12) ($84.73) $45.98 ($183.76) Concessions ($479.75) ($137.66) ($1.20) ($190.45) Vacancy Loss ($1,042.82) ($431.97) ($155.35) ($489.10) Note: Dollar figures are per bed; n = 50 properties, 20,222 beds By the Unit Properties Gain/Loss to Lease 5.70% 2.00% 0.60% 2.20% Concessions 5.60% 2.30% 0.00% 2.50% Vacancy Loss 12.90% 5.30% 2.20% 6.90% Note: Figures are a percentage of gross market rent; n = 50 properties, 20,222 beds Properties Built 2003 to Present National Results: By Property Age Gross Market Rent $4,367.27 $6,634.57 $9,185.47 $6,851.66 Gain/Loss to Lease ($254.21) ($6.70) $81.12 ($55.68) Concessions ($323.18) ($33.91) $0.00 ($145.60) Vacancy Loss ($2,264.59) ($471.84) ($59.35) ($851.35) Note: Dollar figures are per bed; n = 124 properties, 65,618 beds NSHC White Paper: Student Housing Gross Rents, Concessions, and Vacancies 4
Properties Built 2003 to Present Gain/Loss to Lease 3.50% 0.10% 1.50% 0.70% Concessions 5.30% 0.50% 0.00% 1.90% Vacancy Loss 28.70% 7.30% 1.10% 11.90% Note: Figures are a percentage of gross market rent; n = 124 properties, 65,618 beds Properties Built 1998 to 2002 Gross Market Rent $3,989.75 $5,191.88 $8,199.30 $5,685.38 Gain/Loss to Lease ($281.04) ($7.71) $73.19 ($78.43) Concessions ($202.12) ($7.31) $0.00 ($60.45) Vacancy Loss ($758.86) ($248.90) ($45.36) ($325.54) Note: Dollar figures are per bed; n = 77 properties, 48,332 beds Properties Built 1998 to 2002 Gain/Loss to Lease 5.30% 0.20% 1.20% 1.30% Concessions 3.70% 0.20% 0.00% 1.10% Vacancy Loss 13.10% 4.10% 0.80% 5.90% Note: Figures are a percentage of gross market rent; n = 77 properties, 48,332 beds Properties Built 1997 and Before Gross Market Rent $3,177.67 $5,763.31 $8,661.08 $5,883.49 Gain/Loss to Lease ($338.45) ($23.27) $98.19 ($99.18) Concessions ($390.69) ($53.16) $0.00 ($129.75) Vacancy Loss ($1,082.61) ($366.18) ($12.24) ($612.19) Note: Dollar figures are per bed; n = 96 properties, 50,392 beds Properties Built 1997 and Before Gain/Loss to Lease 5.50% 0.50% 1.50% 1.30% Concessions 5.90% 1.00% 0.00% 2.10% Vacancy Loss 18.00% 6.50% 0.80% 9.30% Note: Figures are a percentage of gross market rent; n = 96 properties, 50,392 beds NSHC White Paper: Student Housing Gross Rents, Concessions, and Vacancies 5
Regional Results Regional data is separated into four regions Northeast, Midwest, Southeast, and Southwest. Please note that because of limitations in sample size in some regions, a full data release may be unavailable. All Properties, Northeast Region Northeast Region Gross Market Rent $1,932.69 $8,263.36 $10,833.67 $7,576.54 Gain/Loss to Lease ($263.78) $0.00 $0.00 ($84.79) Concessions ($476.90) ($3.09) $0.00 ($86.16) Vacancy Loss ($4,664.53) ($95.21) $0.00 ($1,061.59) Note: Dollar figures are per bed; n = 26 properties, 14,213 beds All Properties, Northeast Region Gain/Loss to Lease 2.4% 0.0% 0.0% 0.7% Concessions 5.20% 0.00% 0.00% 1.00% Vacancy Loss 51.50% 1.20% 0.70% 11.80% Note: Figures are a percentage of gross market rent; n = 26 properties, 14,213 beds All Properties, Midwest Region Midwest Region Gross Market Rent $3,417.54 $5,318.56 $9,551.37 $5,954.01 Gain/Loss to Lease ($141.98) ($6.35) $101.86 ($19.39) Concessions ($369.98) ($52.59) $0.00 ($114.81) Vacancy Loss ($2,438.09) ($396.67) ($57.98) ($819.52) Note: Dollar figures are per bed; n = 66 properties, 37,830 beds NSHC White Paper: Student Housing Gross Rents, Concessions, and Vacancies 6
All Properties, Midwest Region Gain/Loss to Lease 2.7% 0.1% 1.8% 0.4% Concessions 4.7% 0.9% 0.0% 1.8% Vacancy Loss 31.8% 7.1% 1.4% 11.9% Note: Figures are a percentage of gross market rent; n = 66 properties, 37,830 beds Midwest Region: By Leasing Model By the Bed Properties, Midwest Region Gross Market Rent $3,705.62 $5,248.53 $9,275.78 $5,804.10 Gain/Loss to Lease ($141.98) $0.00 $105.00 ($9.52) Concessions ($303.35) ($49.66) $0.00 ($114.66) Vacancy Loss ($2,505.31) ($396.61) ($57.98) ($922.14) Note: Dollar figures are per bed; n = 53 properties, 31,587 beds By the Bed Properties, Midwest Region Gain/Loss to Lease 2.70% 0.00% 2.00% 0.20% Concessions 5.50% 0.90% 0.00% 1.80% Vacancy Loss 40.60% 8.10% 1.40% 13.20% Note: Figures are a percentage of gross market rent; n = 53 properties, 31,587 beds By the Unit Properties, Midwest Region Gross Market Rent $3,417.54 $6,330.50 $10,330.00 $6,565.20 Gain/Loss to Lease ($84.13) ($35.78) $26.09 ($59.61) Concessions ($411.61) ($62.31) ($1.62) ($115.40) Vacancy Loss ($661.75) ($425.75) ($133.32) ($401.16) Note: Dollar figures are per bed; n = 13 properties, 6,243 beds NSHC White Paper: Student Housing Gross Rents, Concessions, and Vacancies 7
By the Unit Properties, Midwest Region Gain/Loss to Lease 2.30% 0.50% 0.30% 1.00% Concessions 4.40% 1.10% 0.00% 1.50% Vacancy Loss 12.40% 5.60% 2.10% 6.60% Note: Figures are a percentage of gross market rent; n = 13 properties, 6,243 beds Midwest Region: By Property Age Properties Built 2003 to Present, Midwest Region Gross Market Rent $4,070.52 $6,582.17 $109,528.2 5 $6,980.71 Gain/Loss to Lease ($207.99) $0.00 $143.86 ($9.26) Concessions ($303.35) ($89.83) $0.00 ($136.65) Vacancy Loss ($2,976.03) ($700.54) ($64.18) ($1,285.33) Note: Dollar figures are per bed; n = 26 properties, 13,626 beds Properties Built 2003 to Present, Midwest Region Gain/Loss to Lease 3.40% 0.00% 3.90% 0.00% Concessions 5.50% 1.10% 0.30% 1.90% Vacancy Loss 43.10% 12.80% 1.60% 17.40% Note: Figures are a percentage of gross market rent; n = 26 properties, 13,626 beds Properties Built 1998 to 2002, Midwest Region Gross Market Rent $3,989.75 $4,629.25 $6,945.27 $5,046.84 Gain/Loss to Lease ($281.04) ($2.36) $60.98 ($42.92) Concessions ($176.94) ($15.86) $0.00 ($42.79) Vacancy Loss ($656.05) ($179.44) ($43.42) ($268.14) Note: Dollar figures are per bed; n = 16 properties, 10,167 beds NSHC White Paper: Student Housing Gross Rents, Concessions, and Vacancies 8
Properties Built 1998 to 2002, Midwest Region Gain/Loss to Lease 5.30% 0.10% 1.20% 0.80% Concessions 2.50% 0.40% 0.00% 0.80% Vacancy Loss 12.40% 3.60% 1.10% 5.20% Note: Figures are a percentage of gross market rent; n = 16 properties, 10,167 beds Properties Built 1997 and Before, Midwest Region Gross Market Rent $3,253.91 $4,784.26 $7,437.53 $5,085.19 Gain/Loss to Lease ($95.04) ($7.00) $59.57 ($6.65) Concessions ($504.71) ($25.51) $0.00 ($138.96) Vacancy Loss ($745.82) ($265.58) ($5.30) ($762.55) Note: Dollar figures are per bed; n = 14 properties, 7,906 beds Properties Built 1997 and Before, Midwest Region Gain/Loss to Lease 2.70% 0.10% 1.20% 0.50% Concessions 8.60% 0.70% 0.00% 2.60% Vacancy Loss 11.20% 6.60% 0.20% 10.40% Note: Figures are a percentage of gross market rent; n = 14 properties, 7,906 beds All Properties, Southeast Region Southeast Region Gross Market Rent $3,775.87 $5,643.95 $7,849.14 $5,713.86 Gain/Loss to Lease ($311.65) ($17.31) $71.09 ($82.83) Concessions ($379.46) ($44.96) $0.00 ($128.84) Vacancy Loss ($887.20) ($329.30) ($45.36) ($414.58) Note: Dollar figures are per bed; n = 154 properties, 83,961 beds NSHC White Paper: Student Housing Gross Rents, Concessions, and Vacancies 9
All Properties, Southeast Region Gain/Loss to Lease 5.2% 0.3% 1.0% 1.3% Concessions 5.50% 0.80% 0.00% 2.00% Vacancy Loss 15.0% 5.6% 1.0% 7.2% Note: Figures are a percentage of gross market rent; n = 154 properties, 83,961 beds Southeast Region: By Leasing Model By the Bed Properties, Southeast Region Gross Market Rent $3,629.93 $5,471.73 $7,420.83 $5,423.32 Gain/Loss to Lease ($254.16) ($7.71) $74.86 ($57.53) Concessions ($323.18) ($8.97) $0.00 ($98.96) Vacancy Loss ($887.20) ($292.64) ($41.45) ($398.37) Note: Dollar figures are per bed; n = 127 properties, 74,836 beds By the Bed Properties, Southeast Region Gain/Loss to Lease 4.50% 0.20% 1.60% 1.00% Concessions 4.80% 0.20% 0.00% 1.70% Vacancy Loss 16.1% 5.6% 0.9% 7.1% Note: Figures are a percentage of gross market rent; n = 127 properties, 74,836 beds By the Unit Properties, Southeast Region Gross Market Rent $5,337.28 $6,979.49 $10,173.08 $7,162.85 Gain/Loss to Lease ($414.32) ($194.41) $57.44 ($209.62) Concessions ($510.51) ($266.16) ($93.58) ($279.75) Vacancy Loss ($895.11) ($444.02) ($269.38) ($505.41) Note: Dollar figures are per bed; n = 26 properties, 8,741 beds NSHC White Paper: Student Housing Gross Rents, Concessions, and Vacancies 10
By the Unit Properties, Southeast Region Gain/Loss to Lease 6.30% 3.00% 80.00% 3.00% Concessions 6.20% 3.90% 1.30% 3.80% Vacancy Loss 13.3% 5.8% 4.0% 7.4% Note: Figures are a percentage of gross market rent; n = 26 properties, 8,741 beds Southeast Region: By Property Age Properties Built 2003 to Present, Southeast Region Gross Market Rent $4,131.08 $6,380.02 $8,027.13 $6,021.55 Gain/Loss to Lease ($288.44) ($54.06) $88.25 ($77.34) Concessions ($374.39) ($38.88) $0.00 ($133.03) Vacancy Loss ($975.04) ($352.23) ($48.86) ($458.43) Note: Dollar figures are per bed; n = 40 properties, 22,548 beds Properties Built 2003 to Present, Southeast Region Gain/Loss to Lease 4.80% 0.70% 1.50% 1.30% Concessions 5.40% 0.80% 0.00% 2.20% Vacancy Loss 15.6% 6.2% 1.0% 7.3% Note: Figures are a percentage of gross market rent; n = 40 properties, 22,548 beds Properties Built 1998 to 2002, Southeast Region Gross Market Rent $4,003.08 $5,364.03 $6,865.17 $5,316.20 Gain/Loss to Lease (255.92) ($17.03) $23.74 ($78.45) Concessions ($253.23) ($0.22) $0.00 ($66.49) Vacancy Loss ($519.58) ($194.28) ($45.36) ($277.21) Note: Dollar figures are per bed; n = 45 properties, 27,222 beds NSHC White Paper: Student Housing Gross Rents, Concessions, and Vacancies 11
Properties Built 1998 to 2002, Southeast Region Gain/Loss to Lease 5.30% 0.30% 0.40% 1.50% Concessions 4.50% 0.00% 0.00% 1.10% Vacancy Loss 9.2% 3.4% 0.7% 5.3% Note: Figures are a percentage of gross market rent; n = 40 properties, 22,548 beds Properties Built 1997 and Before, Southeast Region Gross Market Rent $3,635.01 $5,767.04 $7,849.14 $5,830.07 Gain/Loss to Lease ($345.70) ($75.53) $106.28 ($109.82) Concessions ($895.11) ($432.35) ($100.03) ($504.03) Vacancy Loss ($895.11) ($432.35) ($100.03) ($504.03) Note: Dollar figures are per bed; n = 56 properties, 26,375 beds Properties Built 1997 and Before, Southeast Region Gain/Loss to Lease 5.8% 1.4% 1.9% 1.5% Concessions 6.2% 1.8% 0.0% 2.7% Vacancy Loss 17.5% 6.2% 2.3% 8.7% Note: Figures are a percentage of gross market rent; n = 56 properties, 26,375 beds All Properties, Southwest Region Southwest Region Gross Market Rent $4,119.31 $6,314.70 $9,510.22 $6,960.27 Gain/Loss to Lease ($462.77) $0.00 $92.37 ($82.14) Concessions ($207.78) ($12.72) $0.00 ($114.29) Vacancy Loss ($1,497.42) ($471.26) ($43.50) ($703.17) Note: Dollar figures are per bed; n = 78 properties, 43,736 beds NSHC White Paper: Student Housing Gross Rents, Concessions, and Vacancies 12
All Properties, Southwest Region Gain/Loss to Lease 5.3% 0.0% 1.5% 1.0% Concessions 3.10% 0.30% 0.00% 1.40% Vacancy Loss 24.3% 7.9% 1.4% 10.5% Note: Figures are a percentage of gross market rent; n = 78 properties, 43,736 beds Southwest Region: By Leasing Model By the Bed Properties, Southwest Region Gross Market Rent $4,239.61 $6,251.61 $8,956.21 $6,422.15 Gain/Loss to Lease ($246.28) $0.00 $92.37 ($53.04) Concessions ($195.50) ($6.79) $0.00 ($115.50) Vacancy Loss ($1,497.42) ($471.89) ($43.50) ($704.10) Note: Dollar figures are per bed; n = 71 properties, 40,748 beds By the Bed Properties, Southwest Region Gain/Loss to Lease 4.1% 0.0% 1.5% 0.8% Concessions 3.10% 0.10% 0.00% 1.40% Vacancy Loss 22.3% 8.3% 1.4% 10.8% Note: Figures are a percentage of gross market rent; n = 71 properties, 40,748 beds By the Unit Properties, Southwest Region Gross Market Rent $2,595.53 $9,510.22 $27,375.97 $12,418.40 Gain/Loss to Lease ($1,585.72) ($143.78) $73.19 ($377.36) Concessions ($241.17) ($117.90) $0.00 ($102.00) Vacancy Loss ($1,330.64) ($333.67) ($223.49) ($693.73) Note: Dollar figures are per bed; n = 7 properties, 2,988 beds NSHC White Paper: Student Housing Gross Rents, Concessions, and Vacancies 13
By the Unit Properties, Southwest Region Gain/Loss to Lease 6.8% 3.1% 0.6% 2.5% Concessions 2.50% 0.50% 0.00% 1.00% Vacancy Loss 25.1% 4.9% 2.4% 7.6% Note: Figures are a percentage of gross market rent; n = 7 properties, 2,988 beds Southwest Region: By Property Age Properties Built 2003 to Present, Southwest Region Gross Market Rent $4,759.18 $6,581.35 $8,708.14 $6,954.74 Gain/Loss to Lease ($245.48) ($2.30) $60.62 ($66.79) Concessions ($213.25) ($19.22) $0.00 ($160.28) Vacancy Loss ($1,596.06) ($578.00) ($43.50) ($712.36) Note: Dollar figures are per bed; n =44 properties, 22,937 beds Properties Built 2003 to Present, Southwest Region Gain/Loss to Lease 3.10% 0.10% 1.10% 0.70% Concessions 3.50% 0.40% 0.00% 1.80% Vacancy Loss 25.5% 7.2% 1.4% 10.6% Note: Figures are a percentage of gross market rent; n =44 properties, 22,937 beds Properties Built 1998 to 2002, Southwest Region Gross Market Rent $3,685.25 $5,799.75 $12,004.88 $7,652.16 Gain/Loss to Lease ($473.49) $0.00 $312.98 ($131.16) Concessions ($179.07) ($56.73) $0.00 ($68.77) Vacancy Loss ($1,049.50) ($658.29) ($143.78) ($584.05) Note: Dollar figures are per bed; n =14 properties, 9,207 beds NSHC White Paper: Student Housing Gross Rents, Concessions, and Vacancies 14
Properties Built 1998 to 2002, Southwest Region Gain/Loss to Lease 6.80% 0.00% 3.50% 1.40% Concessions 3.6% 0.8% 0.0% 1.3% Vacancy Loss 21.4% 8.2% 2.8% 9.3% Note: Figures are a percentage of gross market rent; n =14 properties, 9,207 beds Properties Built 1997 and Before, Southwest Region Gross Market Rent $2,595.53 $5,772.20 $12,261.71 $6,299.24 Gain/Loss to Lease ($602.33) ($38.17) $157.70 ($99.43) Concessions ($118.38) ($0.48) $0.00 ($38.71) Vacancy Loss ($2,050.20) ($379.06) ($26.15) ($878.93) Note: Dollar figures are per bed; n =17 properties, 10,302 beds Properties Built 1997 and Before, Southwest Region Gain/Loss to Lease 5.50% 0.90% 3.00% 1.60% Concessions 2.30% 0.00% 0.00% 0.60% Vacancy Loss 25.1% 8.9% 2.4% 12.8% Note: Figures are a percentage of gross market rent; n =17 properties, 10,302 beds NSHC White Paper: Student Housing Gross Rents, Concessions, and Vacancies 15