Missouri University of Science and Technology

Rolla,

Student Housing Market Analysis And Financial Analysis

In 2013 the Missouri University of Science and Technology selected B&D to conduct a student housing market and financial analysis to help determine the scope of a planned on-campus development. The university had a two-year live-on requirement and expected enrollment to continue at a steady pace, producing the need not only for new housing, but for reconfiguration of its present inventory as well. Our scope of work consisted of a review of existing documents—including campus plans, strategic plans, and enrollment projections—along with interviews with senior administration to define and outline the university’s vision and expectations for the project. Student focus group interviews were held to learn more about prospective housing facility occupants’ needs and preferences, which would ultimately shape the project concept. We also implemented an Internet-based student survey to test demand for living on or off campus, the results of which were the basis for an analysis of housing preferences and unit types. The local off-campus housing market was then surveyed, including existing and planned developments. In addition, a financial model was constructed with a 10-year operating pro forma projecting cash flow, debt coverage, construction costs, a building program, and revenue and operating cost projections. As a result, we outlined the potential risks and rewards associated with the contemplated project. Our research and analysis highlighted demand for a 220-bed project with apartment units in a mix of two- and four-bedroom configurations, while a 59-bed surplus in the university’s graduate housing was targeted for conversion into single units to provide additional capacity. In 2014 the university retained us again, this time to develop a comprehensive program for the new housing facility, and to assist with the selection of the design-build team through RFP development, proposal reviews, and interview participation. As a result, the 450-bed University Commons opened in August 2016.