Following the second wave of COVID-19 infections in July, many universities revised re-opening plans an implemented online education through the fall. Online education, however, has not had a significant impact on student housing collections or leasing activity. Student housing owner and operator Pierce Education Properties reports 97% rent collections since the beginning of classes in August and less than 1% lease cancellations as a result of distance learning.

"The degree of no-shows—students who signed a lease, but did not move in—this year in our portfolio was consistent with years past at less than 1%.  And August collections for our portfolio were also very strong at 97%–they were 96% in August 2019. These trends were not impacted by the mode of course delivery," Frederick W. Pierce, IV, president and CEO of Pierce Education Properties, tells GlobeSt.com.  "This information affirms that students do not want to stay at home and miss out on the social aspects of their college experience.  They want to be at school even if some or all of their courses are on-line. As such, the fall performance of our portfolio has proven to be in line with our optimism earlier in the year."

While rent collections have not been impacted, the university plans and market fundamentals have changed dramatically, particularly compared to Pierce's initial outlook earlier in the pandemic. "As universities began announcing fall re-opening plans in May and June, optimism was high as about two-thirds were indicating plans to be holding classes either entirely or substantially in-person," says Pierce, IV. "Most others were planning a Hybrid approach–some in-person and some on-line. Only 7% were planning for entirely on-line. That bolstered pre-leasing in June and July, which had fallen between 7% and 10% behind last year's pace in April and May."