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Interesting viewpoint that universities and colleges may be able to take up vacated commercial space in cities, increasing vibrancy and spending by visitors in downtowns.
Can it work? I think it can only help, since many downtowns are struggling today, from where they were pre-pandemic levels.
Downtowns aren't "struggling". The property owners have chosen to keep empty properties rather than reducing their rent to increase occupancy. Or, perhaps, their bank issued a mortgage with inflexible terms that would rather foreclose on the property than get less money. But, if the owner stops paying the loan and the bank forecloses, then either the bank will be forced to accept less money, or the bank will figure out how to market the property better.
I see tons and tons of these articles saying downtowns are "struggling" but fail to mention one of the biggest issues - excessively high debt ratios and inflexible loan terms. If a business cannot handle a modest drop in revenue without going bust, this is a policy issue and should have been foreseen. None of these supposedly "struggling" cities actually went the way of Detroit. They just need to lower prices or rents a little. But they won't do it. Perhaps they figure that gains are privatized and losses are public - since the government will bail them out. That is *precisely* what current policy encourages - more and more greed, disproportionate risk taking, and irresponsible debt ratios.
Any students who live in "on-campus" housing in these buildings will pay their rent as part of their tuition, room and board charges.
If the students, or the students' families, use student loans to pay those charges, then ultimately, the students themselves will pay it.
If this becomes widespread and the colleges and universities buy these buildings, expect to see a number of cities demand, and begin negotiations for, PILOTs (payments in lieu of taxes) from these schools.
Research done in dorm rooms not buildings? I think not. No university holds live on campus classes? I think they do.
Moving student housing from one area to another does not increase occupancy for the location in totality.
More fuzzy thinking showing our education system is severely flawed
Research done in dorm rooms not buildings? I think not. No university holds live on campus classes? I think they do.
Moving student housing from one area to another does not increase occupancy for the location in totality.
More fuzzy thinking showing our education system is severely flawed
The buildings being discussed in the OP:
a) were not relocations but expansions of university facilities
b) combined office and residential space in many cases
In the latter, the research and teaching take place on the office floors while the students live on the upper floors and "commute" to classes by taking the elevator down.
Our higher education system may be "seriously flawed" and is likely due for a shakeout as the stream of incoming students decreases*, but thinking along these lines when it comes to adding academic facilities is not a flaw.
*Though most of our larger universities and colleges may find that students coming from abroad — who pay full tuition unless they qualify for institutional financial aid, as they aren't eligible for government-funded grants and loans — will save their bacon. Our higher educatio0n system remains the envy of the world and attracts students from many foreign countries.
Even free rent won't bring the final 40% of office workers back.
That's the wrong way of looking at it. Some people may not be using those buildings, but someone else will. Some other businesses that are located elsewhere will be lured in if the rent is low enough for it to make sense. Some people may even start a new business if they can get their expenses low enough. It is implausible that absolutely no one has any use for a commercial space inside a major city, in the absence of aggressive population decline (of a scale comparable to Detroit in 2008-2009).
I don't see it having a major impact on anything. My alma matter has done the same, but it provides students transportation to and from their on campus residence halls. I was involved in some of these revitalisation discussions, and a lot goes into it regarding IT, geberal infrastructure, fire alarms, security alarms, access cards, etc., etc. And all of these places become Clery reportable locations, which may or may not increase the workload of the Clery Compliance officer.
A colleague at a community college said their instiution looked at taking over an old building to make student housing and decided that it simply wasn't worth the hastle.
My experience with international students is that they want the cheapest housing that they can get as close to the main campus as possible. International enrollment is almost back to pre opandemic levels, but do not count on that to be a huge income stream. At best, it will help maintain the status quo. International students also work most of the crap student jobs on campus because domestic students by and large do not want them, and it is the only legal job that international students can hold.
HS graduation numbers are on the decline, and the distrust of higher ed is on the rise. I believe that about 50% of private universities are expected to operate with a deficit next year.
There will be some bright spots here and there, but academia isn't going to save downtowns. Most colleges are worrying about keeping their own doors open.
That's the wrong way of looking at it. Some people may not be using those buildings, but someone else will. Some other businesses that are located elsewhere will be lured in if the rent is low enough for it to make sense. Some people may even start a new business if they can get their expenses low enough. It is implausible that absolutely no one has any use for a commercial space inside a major city, in the absence of aggressive population decline (of a scale comparable to Detroit in 2008-2009).
No. Those businesses are just as likely to move further out than further in.
And low office costs aren't really going to create that many businesses. Rent + triple net costs are equal to a tiny fraction of wages + benefits.
A colleague at a community college said their instiution looked at taking over an old building to make student housing and decided that it simply wasn't worth the hastle.
I now wonder how many two-year public colleges in the US are banking on attracting students from abroad.
The Community College of Philadelphia, where my ex teaches, went in halfsies with a private developer who built a brand-new apartment building with amenities that would appeal to college students right next to its main campus. I heard from the developer when I toured it that CCP was hoping to attract international students, who pay full tuition and aren't eligible for financial aid.
I met at least one domestic CCP student who took up residence in it.
DT Phoenix has had some success by getting ASU to move some its schools there from nearby Tempe. It's not exactly midtown Manhattan, but far more vibrant than it used to be, and ASU has been an important contributor to that.
Last edited by TheseGoTo11; 12-04-2023 at 11:40 PM..
No. Those businesses are just as likely to move further out than further in.
And low office costs aren't really going to create that many businesses. Rent + triple net costs are equal to a tiny fraction of wages + benefits.
You speak as though there is no business advantage to being located in a city, where the density of people is much higher. How would that be remotely plausible?
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