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Colliers Adds Single-Family Rental Veteran To Expand Presence in Hot Sector

A Daily Look at the Movers and Shakers in Commercial Real Estate

Shawn Henry has been working in the single-family rental business for more than two decades, but even as an industry veteran, he's impressed with how the sector has blossomed over the past couple of years.

The influx of money from large investors has changed the single-family rental, or SFR, game, along with the emergence of subdivisions with homes built to be rented instead of owned.

"I believe we are in the very opening innings in the emergence of a new CRE asset class," Henry said in an email, noting that the confluence of single-family detached housing, short-term rentals and build-to-rent properties, "will drive this asset class for decades to come."

As the single-family sector heats up, Henry, who spent the past three years running his own single-family rental consulting shop, has decided to take his experience to a global brokerage. Last week, he joined Colliers U.S. as a managing director and head of single-family rental in Colliers' capital markets group.

Based in Boise, Idaho, Henry said he plans to focus on debt and equity transactions and dispositions across the country. “As a practice, we plan to target both institutional clients and mid-size professional investors that are looking for value and yield in single-family rental portfolios in key markets across the country," he said.

Colliers said Henry's experience will benefit the firm as it expands its presence in the arena with hopes of catching the current wave of investor and developer interest in the single-family rental sector.

“Since 2020, more than $30 billion in institutional equity capital has entered the SFR industry,” David Amsterdam, Colliers president of U.S. capital markets and its Northeast region, said in a statement. “While the investment class is still in its early stages, we are seeing a sustained interest in single-family rental portfolios across the country."

Citing industry research, Colliers said single-family investors recently have accounted for more than 15% of home purchases, and that the percentage could double in the next two years.

"Sun Belt states will be see the big increases" in single-family residential, Henry said. "Dallas, Austin, Houston, Phoenix — everywhere in-migration is bright green is where people" are planning build-to-rent projects.

Jay Lybik, CoStar's national director of multifamily analytics, said a current supply-and-demand imbalance is fueling new development of build-to-rent single-family homes.

"As available exiting inventory of rental housing has declined to historic lows, a new strategy has emerged over the past few years," Lybik said in a recent report. "Instead of purchasing existing houses for rentals, more capital sources are increasingly focused on building new housing subdivisions just for rent."

Henry started his own single-family rental consulting business after leading the SFR platform at A10 Capital and serving as senior vice president of U.S. and European capital markets at Capmark/GMAC.

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