Higher Education Real Estate Ventures

Throughout the history of American higher education, colleges and universities have been significant consumers of real estate. This publication aims to stimulate discussion about the roles governing boards play in evaluating real estate uses and transactions, and to provide thought-provoking ideas, “how-to’s,” and case studies about institutions that have leveraged their physical assets to succeed in fulfilling their mission and advancing strategic priorities.

Since their founding, most suburban campuses have grown and expanded, typically through inefficient, low-rise, sprawling growth. Historically, this approach was the most cost-effective for meeting the needs of the institutions and their missions because institutions found excess real estate available and inexpensive. Even on urban campuses, the ability to acquire additional real estate was a fiscally sound proposition.

However, the funding and delivery model of higher education has evolved, and many institutions have encountered new challenges and opportunities: increased operational costs, escalating real estate values, and changing student needs and expectations. In this environment, how do institutions leverage real estate to advance their mission and strategic priorities?