Skip to main content

Colleges are Cashing in On Real Estate: Here’s How


We all know that real estate is a prosperous industry. Its profit-boosting powers have been catching the eyes of a new demographic. Can you guess who?

If universities came to mind, then you’re right on the ball. Colleges have been heavily investing in their surrounding communities for a while, and they’ve been reaping the rewards. Universities are now playing a far more active role in their local commercial real estate markets.

Let’s take a look at how colleges are using commercial real estate to increase their profits.

Expanding the Campus Grounds

Today’s colleges aren’t set up the same way they were 30 years ago. The business has changed and universities have evolved into larger and more dynamic campuses.

The traditional college setup has expanded to include student housing, top-rated facilities, school buildings, shops, bookstores, cafes, and more. In diversifying their business platform, colleges are expanding their money-generating potentials.

Colleges are known to capitalize on CRE spaces like restaurants, multifamily complexes, entertainment options, off-site gyms, and other amenities for their student bodies. Universities are broadening their investment possibilities, fattening their portfolios, and increasing their income.

Filling the Gaps Between Semesters

Colleges undergo extreme on-and-off seasons. Profits inevitably take a huge hit when classes are let out for summer vacations, holidays, and spring break. Real estate is a great opportunity for universities to subsidize these slow periods.

Investing in their Facilities
 
Due to the diverse needs of a college campus, it’s common for universities to design their own buildings. Renovations and upgrades happen at regular intervals to ensure that the institution remains up to date with the latest advances in technology and design.

This system generates tons of wealth towards commercial real estate investment. By investing money into their commercial assets, colleges are playing a role in boosting the market value for the surrounding businesses.

Integrating into Local Communities

As colleges expand their range of commercial properties, they extend their reach into their communities. College-run businesses give their hometowns a unique flare that attracts community locals and tourists alike, boosting their potential reach beyond just the students.

This gives the university a chance to broaden their profit margin even further. Educational institutions that take on the roles of a service-based industry are capitalizing on both areas of business.

Another perk associated with a college extending its reach is the ability to market to a larger audience. Getting involved with local communities will give people in the area first-hand experiences with the university. This can attract interested students - even local youths considering future education options.

Driving Profits in Both Directions

The education system is rethinking the way they approached CRE and it’s generating tons of revenue for both industries. When colleges are doing business with commercial real estate, they’re acting as a prime client for our industry. This is benefiting local markets around the country.

At the same time, colleges are also expanding their profit margins by jumping into the CRE game. It’s a win-win relationship that’s strengthening everyone involved.

Colleges are making the most of commercial real estate investment. By expanding their portfolios, universities are broadening their financial resources.


Comments

Post a Comment

Popular posts from this blog

4 CRE Trends We Can Attribute to Millennials

Today’s workforce is undergoing a major shift in population. As of 2017, 56 million Millennials are either working or actively searching for work , making them the largest segment of the U.S. labor force, surpassing Gen Xers in 2016 and this will eventually lead to an impact of office space needs and what companies are looking for with new office leases.   More than one out of every three American workers is a Millennial -- more than Gen Xers and much more than Baby Boomers. And, just as every other generation that came before them, Millennials pride themselves on marching to the beat of their own drum, if you will -- wearing different clothes, listening to different music, and working differently. The very idea of where and how we work is undergoing a revolution right now, with major changes being made in physical design and decor. Here’s a closer look at 4 CRE trends we can attribute to millennials… 1. Millennials prefer non-traditional workspaces   ...
Post a Comment
Read more

NAI Emory Hill Sells Wilmington Shopping Center

  Wilmington, DE – NAI Emory Hill ( www.naiemoryhill.com ) is pleased to announce the sale of a 8,710 square foot shopping center located at 2308 Concord Pike in Wilmington, DE to The Wittig Family at DSM Commercial. Dave Morrison and Jim O’Hara Jr., of NAI Emory Hill, represented the purchaser and Seller in this transaction. This retail center is anchored by Mattress Firm, Green Drop and China Inn. The center is strategically located at the intersection of Sharpley Road and offers a great retail location along the busy Route 202 corridor. NAI Emory Hill is a completely full-service commercial and residential real estate firm serving Delaware and the surrounding counties of Maryland, New Jersey and Pennsylvania. Founded in 1981, we have the resources to design, build, finance, lease, sell, manage and maintain commercial and residential properties throughout the Mid-Atlantic . Learn more about our services at: www.propertymanagementdelaware.com www.emoryhillhomes.com
Post a Comment
Read more

PropTech 101: What CRE Professionals Should Know

Everyone in the CRE biz has doubtlessly heard the term proptech getting thrown around. Whether it’s been in article headlines, on the web, or during business conversations; ‘proptech’ has officially integrated into the commercial real estate vocabulary. Unfortunately, there isn’t always an on-hand dictionary available to help novices decode the latest and greatest CRE lingo. While proptech popularity has surely skyrocketed during 2019, some of us still may be confused as to what exactly proptech is. We’re happy to clear up the confusion; covering what proptech actually is and why CRE professionals should care. PropTech Explained The moment you’ve been waiting for is here… when you finally get a concise definition of the term PropTech. According to real estate technology experts at Forbes , proptech is ‘the acronym used to describe any technology for the real estate space.’ If that’s not clear enough, here’s another universally-accepted explanation devel...
Post a Comment
Read more