Data Centers and Mid Term Rentals
Member since 2025 · 6 posts · 10 votes
Data Centers and Mid Term Rentals
Most Popular Reply
New to Real Estate · Baton Rouge · Member since 2024 · 44 posts · 28 votes
1yHey Christopher,
This is such an interesting question. I actually looked it up and saw that Meta is building a huge data center in Monroe, which they say will be their largest one yet. That definitely caught my attention too.
I don’t think you can go too wrong with midterm rentals there, especially with all the construction expected over the next five years. That’s thousands of workers who may be coming in from out of town and needing temporary housing. Even after construction wraps up, there will likely be a lot of employees and contractors sticking around, possibly needing furnished places while they get settled or work on short-term assignments.
But I also wonder what else is driving Monroe’s economy outside of Meta? If Meta were to slow down construction or pull out in the future, what would happen to demand for rentals in the area? Are there hospitals, colleges, or other steady employers that would keep things going?
It seems like this could be a great opportunity, but maybe it’s worth digging a little deeper into what kind of tenants would be there five or ten years from now. Is Monroe growing in other ways too? Are housing prices still affordable enough to make the numbers work long-term?
I’d love to hear what others think or if anyone’s already investing there. This feels like one of those spots that could really change over the next few years.
I’m in Baton Rouge and have owned one midterm rental for about two years. I’m looking to expand into more MTRs in the future, so I’m really interested in learning what others are seeing out there.
5 Replies
- New to Real Estate · Baton Rouge · Member since 2024 · 44 posts · 28 votes1y
Hey Christopher,
This is such an interesting question. I actually looked it up and saw that Meta is building a huge data center in Monroe, which they say will be their largest one yet. That definitely caught my attention too.
I don’t think you can go too wrong with midterm rentals there, especially with all the construction expected over the next five years. That’s thousands of workers who may be coming in from out of town and needing temporary housing. Even after construction wraps up, there will likely be a lot of employees and contractors sticking around, possibly needing furnished places while they get settled or work on short-term assignments.
But I also wonder what else is driving Monroe’s economy outside of Meta? If Meta were to slow down construction or pull out in the future, what would happen to demand for rentals in the area? Are there hospitals, colleges, or other steady employers that would keep things going?
It seems like this could be a great opportunity, but maybe it’s worth digging a little deeper into what kind of tenants would be there five or ten years from now. Is Monroe growing in other ways too? Are housing prices still affordable enough to make the numbers work long-term?
I’d love to hear what others think or if anyone’s already investing there. This feels like one of those spots that could really change over the next few years.
I’m in Baton Rouge and have owned one midterm rental for about two years. I’m looking to expand into more MTRs in the future, so I’m really interested in learning what others are seeing out there.
- 1yMichael K GallagherBusiness MemberReal Estate Agent · Columbus OH · Member since 2018 · 1k+ posts · 1k+ votes
@Christopher DEsposito I'm not familiar wtih LA as a market in general but I like the thought. Even once the temporary work moves on there is often still a need in these smaller towns where these centers are gettign built at least in our market for more permanent or long term housing. Or I even worked fora company that had a house that executives stayed at when in town for meetings or kickoffs or what have you, so there's likely something to it as a "model" or "thesis".
- 1yBrian TeeterBusiness MemberLittle Rock, AR · Member since 2021 · 75 posts · 64 votes
Yes, interesting question. Im in Little Rock, Arkansas. A $1Billion dollar data center has been announced for Little Rock (though they havnt disclosed who, local assumption is Amazon, as Amazon has been building out a lot of infrastructure here last few years). Plus another $500 Million center announced for Conway, Arkansas (inside Little Rock metro).
I find it interesting that they are only estimating 100 or so permanent jobs for each center. However, to the point above, I assume there will be a surge of construction jobs and that may ramp up a need for STR and MTR. Im curious what if any technicians, contractors etc orbit around the data centers, once they are functioning. I assume they may also be good candidates for STR and MTR.
Turnkey Property Management4.8170 Reviews - Investor · Mississippi Gulf Coast · Member since 2019 · 56 posts · 53 votes1y
These locations were discussed on a recent episode of "Landlord Diaries" which is Furnished Finders podcast (I wish they would change the name to just Furnished Finders podcast).
Anyway, they were saying that initial construction for data centers would make sites perfect for MTR because data centers usually operate best in areas with low populations and existing housing due to their future energy requirements. However, data centers dont require a lot of long term employees, so outside the initial construction period, the need could unpredictable.
So, I'd echo what Robin Smith said prior. How long is the construction period and then what happens? Might be a strategy to purchase a convenient lot and put a really nice doublewide (or 2) on it and be ready to move it to the next location 2-3 years from now. Certainly could be lucrative with the right exit strategy.
- 1yColleen F.Pro MemberInvestor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
@Christopher DEsposito once data centers are built a lot is done remotely. I know people in the field of managing servers and yes there will be a build up of people for construction and a core staff once the centers are built with some visits by remote workers but it isn't a vision of large population staffing such centers.
Join the conversationCreate a free account to reply, vote on answers and follow this thread.