By: Dean Monnin, Senior Vice President, JLL
Now more than ever, both students and faculty are being more selective about the schools they choose to attend. With the amount students now pay for tuition, room and board, students expect modern amenities and world-class learning environments. Similarly, attracting top-tier faculty is just as competitive, as more schools look to implement the latest technology and research tools.
To accommodate, colleges and universities are turning to the private sector to help preserve resources and finding new ways to fund higher education construction. JLL’s Higher Education Mandate has identified four real estate trends that will impact universities this year.
1. Donors, Debt and Privatization Will Make New Buildings and Other Capital Projects Possible
Last year, education construction was at its lowest point in more than 15 years, while other industries experienced a 97% recovery peak in construction. As a result, many universities are turning to Public Private Partnerships (P3s) to fund facility development, as well as maintenance needed in older buildings.
P3s can ultimately help universities ease the burden of financial constraints while maintaining efficiency in the delivery of new construction and maintenance of it. In order for a P3 to be effective, however, universities will need to identify their key risks and how they should be shared among their public and private sectors.… Read More