Request for Research Proposals: Apartment Investment Returns

The NMHC Research Foundation seeks proposals for funding of research on apartment investment returns.

Project Content. Apartments represent a large and highly-regarded U.S. real estate sector that has attracted capital from both domestic and foreign sources. But there is little up-to-date, publicly available research and analysis that evaluates apartment investment performance, hence this request for proposals.

The goal of this study is to provide a wide-ranging quantitative assessment of apartment investment returns. The study should produce a report that compares investment in apartments compared to other real estate asset classes. Such comparison would include:

• risk-adjusted returns (with a discussion of how best to measure such returns);
• liquidity and cost of capital;
• diversity of investment opportunities (e.g., differing quality, location, and size), including, to the extent possible, assessment of the impact of these characteristics on investment returns;
• policy and tax environment;
• any other characteristics of apartment investment that are deemed important.

The study could also compare apartment returns to those of other (non-real estate) investments and the impact of adding apartments to an investment portfolio.

The NMHC Research Foundation values creativity in study design and execution. Those submitting proposals are encouraged to consider additional/alternative approaches.

For reference, an earlier research paper done for NMHC on this topic can be found here: http://www.nmhc.org/Apartment-Investments/.

Data. Risk-adjusted returns in real estate are commonly measured using NCREIF data. In addition, data and/or the results of data tabulations from Real Capital Analytics and RealPage may be available for this project. Proposals may include the use of other data sources as well.

Funding. The size of the grant will depend on the scope of the proposal chosen. Research Foundation grants are typically in the $10,000 to $20,000 range, but commensurate with project scope and depth, both higher and lower grants will be considered. Funding schedule is 50 percent upon acceptance of the proposal and 50 percent upon completion to the satisfaction of the Board of Directors of the NMHC Research Foundation.

Grant Terms and Conditions. The NMHC Research Foundation retains ownership of all funded research and will have unlimited rights to the use of the deliverables from the study. Researchers can request to reuse, repackage and/or republish the research in other projects or reports after the research has been completed and submitted to the NMHC Research Foundation. Any such use will be accompanied by an acknowledgement of the NMHC Research Foundation as the source of funding for the research.

Submittal Instructions. Submissions should include: (i) one-page resume of all researchers involved; (ii) concise description of issues to be investigated and methodology; (iii) description of data sets to be used; (iv) research timeline; and (v) budget, including projected cost of any data required. Proposals should be addressed to: [email protected] no later than Jan. 31, 2017. Contact Mark Obrinsky, NMHC SVP of Research and Chief Economist, with any questions at 202.974.2329 or [email protected].

About Us. The NMHC Research Foundation is a (501(c)(3)) non-profit organization created to promote high-quality research of value to the apartment industry. Based in Washington, DC, the National Multifamily Housing Council (NMHC) is the leadership of the trillion-dollar apartment industry. We bring together the prominent owners, managers and developers who help create thriving communities by providing apartment homes for 38 million Americans. NMHC provides a forum for insight, advocacy and action that enables both members and the communities they help build to thrive.