Our team of specialists works closely with colleges and universities to assist with managing real estate portfolios. We collaborate with public and private institutions to improve operational efficiency, enable the monetization of non-core real assets, and reposition owned and leased properties – all to ensure the flexibility to deliver cutting edge educational programs and conduct innovative research.
Higher Education Strategic Advisory Services
As the landscape of higher education evolves, many colleges and universities face a set of new challenges. Broad structural shifts bring about issues that affect everyone, including:
- Demographic changes impacting enrollment.
- Long-term disruptions caused by the Covid-19 pandemic.
- A perceived decline in the value of graduate and undergraduate degrees.
These factors impact higher educational institution performance and add uncertainty navigating the future. In addition, the potential impact of emerging technologies such as artificial intelligence and machine learning on campus operations presents yet another layer of complexity. Still, these changes bring opportunities for improving operational efficiency, including:
- Reduced physical space needs.
- Access to students and faculty across broader geographic areas.
- Greater accessibility to cutting-edge technologies and accompanying pedagogies.
At the same time, there is a growing need for colleges and universities, whether global or regional, to integrate their campuses within surrounding neighborhoods and reap the benefits of belonging and collaboration. Creating housing and lifestyle communities that blend living and learning is a difficult task. An even greater challenge is for institutions to determine whether owning their housing is a necessity or a financial burden.
Many institutions find themselves rich in real estate yet poor in cash. Hence, strategies like outright sales, ground leases, or partnerships with developers and complementary institutions in areas like healthcare, life science, and research and development can help mitigate such issues.
Featured Case Studies
Pratt Institute
New Fort Greene Facility
120,000 Square Feet
The Pratt Institute sought a new facility to anchor its Fort Greene, Brooklyn campus. Newmark identified a property that was housing a gas station and advised the Pratt Institute on negotiations to acquire the site. The property owner wished to retain an ownership interest, so Newmark assisted in the creation of a joint venture that ultimately resulted in the property owner receiving ga commercial condominium in a portion of the base of the new seven-story building, which became Myrtle Hall. The building is a state-of-the-art, seven-story property that has accommodated the expansion of the school’s Department of Digital Arts program and a new Digital Arts Lab, as well as the creation of a central location for integrated student services, including Admissions, Financial Aid, Bursar, and Registrar.
Drexel University
Health Science Building
460,000 Square Feet
Newmark facilitated negotiations on behalf of Drexel University with private developers to construct a cutting-edge facility for its health sciences programs alongside two public schools. The university had previously partnered with Wexford Sciences + Technology and Ventas to secure a 14-acre site formerly occupied by the School District of Philadelphia’s University City High School. As part of the agreement, Drexel would provide new facilities for a public elementary and middle school.
Newmark structured a deal wherein Wexford and Ventas would fund Drexel’s commitment to the school district in exchange for the utilization of university-owned development rights on the former high school campus and construct a turn-key academic center for the University. Drexel secured a 30-year lease for its new health sciences building while retaining ownership of the public-school facilities.
University of Utah in Washington, D.C.
The Hinckley Institute
23,000 Square Feet
Newmark was engaged to find a home for the Hinckley Institute, The University of Utah’s internship program that has provided students with full-time, paid internships in Washington, D.C. each year since 1965. After an exhaustive search, a 23,000 SF property was purchased from the Mathematical Association of America for $13 million. The institute appreciated Newmark’s in-depth analysis that demonstrated the financial as well as intangible benefits of the purchase. The University’s vice president for government relations and institute director called the purchase a “game changer.”
For more information, contact:
Roy Abernathy
Executive Managing Director, Workplace Strategy & Human Experience
James D. Kuhn
President and Head of Investor Services