High Barriers to Entry into Niche Markets: Sun Communities operates in highly specialized real estate sectors like manufactured housing communities, RV resorts, and marinas, where new development faces significant hurdles due to restrictive zoning, permitting complexities, and limited suitable land availability, limiting new competition.

Sticky Tenant Base and High Switching Costs: Residents of manufactured housing communities incur significant costs and difficulty relocating their homes, leading to high tenant retention. Similarly, RV resort and marina guests often establish long-term seasonal patterns or utilize specialized dockage, resulting in stable occupancy and low turnover.

Fragmented Acquisition Landscape: The manufactured housing, RV, and marina sectors are still highly fragmented, with many properties owned by smaller, independent operators. This provides Sun Communities with a robust pipeline of acquisition opportunities to expand its portfolio and consolidate market share.