Investor · Los Angeles · Member since 2020 · 24 posts · 14 votes
I've been reading news of universities/schools moving towards a new way of education wherein a portion of the year will be done through Zoom/telecommuting.
1. Is anyone invested in a college town where a portion of your portfolio is specifically renting to college students? If so, how are you doing?
2. How do you think this situation will shake out in the long run for investors?
Real Estate Broker · Salt Lake City & Oklahoma City · Member since 2018 · 3k+ posts · 2k+ votes
6y
HI @Jc Galang, I work with a few different university-focused investors on the agent and management sides and I can say: you're curiosities and concerns here are echoed across the states.
I'll share some skeptic-driven thoughts about #2 -- thinking of Universities as businesses (which they are in a fairly pure sense. Some are quasi-governmental, others private, and still more pure governmental, but they are businesses with revenue streams, assets, etc) I find it exceedingly unlikely that they will accept failure and cessation of their proven and profitable business model at the hands of a technology that has existed sufficiently since the advent of webinars.
I would anticipate the assertion that colleges will go "virtual" as a stop-gap effort to get the public on board to start up the semester amidst categorical chaos and opaqueness. Perhaps too it is an unwitting experiment that will test if the public at large will accept paying the same hourly rate for the education without the expenses of classroom space, utilities, sports, student life, etc. Shoot, if the public IS willing to pay the same rate for online devoid of the university experience, I hope we can buy a good University EFT soon :)
Real Estate Broker · Salt Lake City & Oklahoma City · Member since 2018 · 3k+ posts · 2k+ votes
6y
HI @Jc Galang, I work with a few different university-focused investors on the agent and management sides and I can say: you're curiosities and concerns here are echoed across the states.
I'll share some skeptic-driven thoughts about #2 -- thinking of Universities as businesses (which they are in a fairly pure sense. Some are quasi-governmental, others private, and still more pure governmental, but they are businesses with revenue streams, assets, etc) I find it exceedingly unlikely that they will accept failure and cessation of their proven and profitable business model at the hands of a technology that has existed sufficiently since the advent of webinars.
I would anticipate the assertion that colleges will go "virtual" as a stop-gap effort to get the public on board to start up the semester amidst categorical chaos and opaqueness. Perhaps too it is an unwitting experiment that will test if the public at large will accept paying the same hourly rate for the education without the expenses of classroom space, utilities, sports, student life, etc. Shoot, if the public IS willing to pay the same rate for online devoid of the university experience, I hope we can buy a good University EFT soon :)
I have a few college rentals. I believe the future will return to in person classes. There were already are on line classes before the virus. Not every class can be run this way. The sciences with labs require on site. Of course, the Pandemic will change the ways things are done, but part of the college experience is getting away from home. That aspect will continue in the future. This year is definitely interrupted. It may be an opportunity to invest in the university markets as this has already caused investors to get out. Depending on your building you may be able to rent your building as a traditional rental for this year or at least this semester.
Investor · Los Angeles · Member since 2020 · 24 posts · 14 votes
6y
@Will Fraser you're absolutely right! Although it makes me wonder if the education system (business) can stop the inevitable with their desire and efforts in the face of such change that this pandemic has forced. If the education system was such an essential, then why has it been, dare I say, OPTIONAL in a sense, the last 5 months?
I hope changes do happen, and we as investors will surely be rolling with the punches!