Corporate Housing Real Estate Report 2017: Outlook & Profitability

Profitability

Great news for Corporate Housing​, the fifth year in a row, more than 9 out of 10 respondents ​report their properties are profitable or break-even.

Over the Profitability pie chartlast few years we have seen an influx of new investment owners entering the market. And they are paying more per square foot for their property purchases than that of previous owners. This means their overall expenses are now greater than the former owners. of these properties and profitability is therefore reduced. Owners with a lower cost basis and with rising rents have seen increased profitability. This year however, factoring in these new owner’s profitability went down a bit.

 

 

Profitability percentages

 

 

 

 

Investment Real Estate Trends: Plans to Buy More?

Investment in properties

We’ve all heard that the real estate market is back and based on the responses to our previous question, we also know that corporate housing is profitable. Consistent with previous years, more respondents say, “Yes, I plan on buying more real estate” (42%), than “No, I’m done with real estate” (21%).Investment in properties percentages

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Do you plan to buy more? Tell us your plan in 2018 in the comments below.

To learn more about this topic and other results, view the CHBO annual report.

To view Historical Reports, visit here.

CHBO Annual Report Review: Corporate Housing Landlords – How Long and Why

The results are in, so let’s dig deeper. Each week CHBO will analyze data from the annual corporate housing report and open a discussion. Please provide feedback with your experiences in 2017. This week we discuss how long our providers have been Corporate Housing landlords and why.

Years as a Corporate Housing Landlord

Years as a Corporate Housing Landlord

Property management, of corporate housing, by independent owners remains an emerging field. It’s a field that more owners are committing to, in order to achieve rental success. Consider that:

  • 60% of respondents​ say they’ve been furnished landlords for four years or less. Continuing the trend of new investors entering the real estate investment market.
  • Only 40% of respondents ​say they’ve been furnished landlords for five years or more.

In last year’s annual report, we predicted that if interest rates remained stable in 2017, we should see a “possible increase in new investors who are willing to enter the real estate investment market.” Not surprising that prediction was correct. We saw new investors entering the corporate housing real estate market at a year over year increase of 5%,​ our highest increase ever.

Years as a Corporate Housing Landlord

 

Reason for Being a Corporate Housing Landlord

Reason for Being a Corporate Housing Landlord

Once again, the majority of respondents tell us they are landlords for investment purposes​. This year at an all-time high of 60%​. The “other reason we’re a landlord” category continues to be as “partial landlords.” We define “partial landlords” as property owners who have a  fully functional, stand-alone guest house or apartment suite on the same site as their primary residence. Traditionally, this may have been referred to as an in-law apartment. (Please note, this is different than the “shared space” where property owners rent out a room within their residence, sharing the same space as their renter.)Reason for Being a Corporate Housing LandlordTo learn more about this topic and other results, view the CHBO annual report.

To view Historical Reports, visit here.

 

Albuquerque Furnished Housing – CHBO City Spotlight

With so many corporate employers in the region, Albuquerque is a growing hotspot for business travelers. The need for Albuquerque furnished housing has been increasing over time, and if you are headed to “the Q” for a lengthy stay it is unlikely that you will want to spend your time in some typical extended stay property. This is why you should consider your options in corporate furnished housing and furnished corporate apartments. Why enjoy a visit or begin your move to the area in a less than comfortable setting? You don’t have to, and there are plenty of solutions for you to explore.

Information About Albuquerque

The city has more than one million residents, and as already mentioned, is home to a long list of corporations. Intel, Sandia National Laboratories, and TempurPedic are but a few of the global companies with a major presence in this region. Rated as one of the top ten cities for engineering professionals, it is expected to face an increasing demand for furnished housing in the coming years.

As the city of Albuquerque’s website reads: “Albuquerque has all the elements necessary for successful tech clusters: research centers, an environment of innovation, low cost of doing business, a sizable population of scientists and engineers, low utility rates, venture capital, support networks, and a quality of life that’s attractive to innovators.”
Albuquerque corporate housing

However, as is the case with all cities, not all of the neighborhoods of Albuquerque are alike. Many different neighborhoods provide an abundance of housing options. There are apartments in the “Uptown Loop” area of the city and there are townhouses and gated communities within easy reach of the busier downtown and industrial areas. The thing to remember when considering furnished housing in Albuquerque is whether you want many outdoor amenities or if the city life is for you.