As the pandemic crunches schools' budgets around the country, their real estate holdings may be a key to unlocking liquidity and reducing occupancy costs.
"The pandemic is fast-forwarding business models that were already pivoting to take into account declining enrollments, reductions in state funding, higher debt loads and more distance learning," stated Andy Graiser, co-president of the Association of Governing Boards of Universities and Colleges on AGB's webinar, Bolstering Liquidity by Optimizing Real Estate.
Schools such as Dowling College, the College of New Rochelle, Career Education Corp. and Kaplan University have lowered their occupancy costs by restructuring or terminating leases and boosted liquidity through structured sales and sale-leaseback transactions, according to Graiser
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Leslie Shaver
Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to GlobeSt.com and Real Estate Forum.
