Anyone have any thoughts on the future of coliving and specific real estate startups like Common?
Personally think that it is interesting and the rental premiums are less dependent on cyclical factors like WeWork. Very experiential/community-driven which is important to many millennials.
Hi patsfan947, check out these threads:
You're welcome.
I'm bullish on Co Living, but I think the reach will be limited to super expensive markets (LA, SF, NY, etc.) where it is ridiculously expensive to get into a well amenitized Class A building. I've worked with Common. Their digital marketing/front office management seems solid, and they've got a bunch of new developments. Will be interesting to see how they scale
Agreed - equally bullish on co-living in the current environment and also think they are limited to select Tier I markets (NYC, SF, LA, etc). The co-living model holds significantly less weight in the suburbs or Tier II and Tier III markets.
Assuming that on a back of the napkin analysis, the rent per bed for a coliving property should be cheaper than a similar class studio apartment? Has anyone given any thought to cap rate normalisation compared to market rate traditional Multifamily and what sort of discount the bed rents ought to be compared to a studio?
Maybe not a discount in rent versus studio apartments... generally the co-living units come furnished, include utilities (internet too), and have regular cleaning service. I'd assume a similar cap-rate difference to that of hotel asset class.. not as drastic as the 300+ basis point increase, but there's definitely something there.
I don't think there have been any dispositions of this product type (if there have, please send me the comps). I think owner/operators are in it right now for the cash flow.
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