Education Advisory Group
The Future of Education inReal Estate
Cushman & Wakefield’s Education Advisory Group understands the needs of institutions around the world. Real estate is paramount to balancing the requirements of educational organizations and their faculty, staff, and students. Our experts assist in identifying and achieving the goals and objectives of each institution through an effective real estate strategy.
CUSHMAN & WAKEFIELD’SEDUCATION ADVISORY GROUP
Educational institutions do more than just teach our children — they fuel innovation which makes our world a better place while also setting the foundation on which the future is built. Real estate plays a vital role in the success of most institutions, as it facilitates day-to-day advancements, research, and exploration as well as contributes to attracting and retaining not just the students of tomorrow, but also the industry’s best educators and professionals.
Cushman & Wakefield’s Education Advisory Group advises on real estate opportunities and strategies to maximize schools and organizations competitive advantage, while maintaining focus on the values, mission, and long-term objectives of institutions around the world. From early childhood education centers through post-secondary schools, our team works with institutions to understand and leverage market dynamics, and develop and execute on acquisition, disposition, development, financing, and project management real estate projects. Clients benefit from the market knowledge, trend perspective, and practical experience resulting from past partnerships with more than 200 education institutions and private-equity educational investors. In addition, the Group’s access to the resources of Cushman & Wakefield’s full service global platform ensure the application of best practices and thought leadership that helps clients visualize — and realize — the solutions most beneficial to their unique needs.
What’s Inside
TOP 6 CURRENT &EMERGING TRENDS IN EDUCATION
CUSHMAN & WAKEFIELD INTEGRATED FULL-SERVICE PLATFORM
CUSHMAN & WAKEFIELD’S PROPRIETARY DATA-DRIVEN APPROACH
THE LIFE CYCLE OFEDUCATION
SELECT EXPERIENCE WITHIN THE EDUCATION SECTOR
EDUCATIONTECHNOLOGY
CUSHMAN & WAKEFIELDBUILT TO LEAD
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Flexible, Collaborative LearningBuilding spaces which allow for alternative pedagogies and interdisciplinary studies, and have multifunctional technological capabilities, ensure maximum facility usage.
CONNECTED LEARNINGEfficient & Environmentally FriendlyWell-managed sustainability strategies not only reduce pressure on resources, they also yield operational cost savings, healthier and more productive work environments, and more valuable assets.
SUSTAINABILITY
TechnologyIn-depth knowledge of the convergence and democratization of technology in education facilitating optimal functionality.
GLOBAL COMPETENCEPhysical, Emotional, Academic SafetyStrategies to mitigate risk and ensure regulatory compliance are of paramount importance to the overall safety of students, staff, and educational facilities.
SAFETY & SECURITY
Financing SolutionsEvaluation of the current financial model enables exploration and development of creative financing strategies that utilize available, often overlooked, incentives.
CREATIVE FINANCING
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Top 6 Current & Emerging Trends in Education
Competency-Based Platforms
Online Program Managers Learning Analytics
Online Courses Social Alumni Apps & Networking
Student Success/Retention Solutions
Virtual RealityAdaptive Learning PlatformLead Aggregators Student Information
Systems
As one of the fastest growing trends, the incorporation and constant adaptation of education technology is a key driver for the success of all schools. Cushman & Wakefield’s Education Advisory Group has dedicated professionals whose focus is to maintain an understanding on the student life cycle framework of the technology landscape as well as providers in order to assist our clients with their specific needs.
Infrastructure, Administrative, Academic
• Blackboard• HelixEducation• Desire2Learn
• EdX• Coursera• Udemy
• ACT• CollegeBoard• The Princeton Review
• Pearson• Deltak• Orbis Education
• EverTrue• Aluminati• Graduway
• 2U• Knewton• Realizeit
• Civitas Learning• Epsilen• Acrobatiq
• Starfish• Salesforce• AspireEDU
• Workday• Ellucian• Jenzabar
EarlyChildhoodEducation
Public Charter& TechnicalSchools
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HOW WE CAN HELP
Cushman & Wakefield Integrated Full-Service Platform
STRUCTUREDFINANCE
PROJECT & DEVELOPMENT SERVICES
VALUATION &ADVISORY
INTEGRATED FACILITY MANAGEMENT
Financing Solutions Development & Construction
Real Estate Opportunities Proactive Management
Institutions can leverage private capital markets to build new or improve existing facilities without impacting their balance sheet. We help source diverse third-party capital to help fund educational facilities, student housing, and athletic facilities.
Significant construction projects are planned on 75% of college campuses over the next three years. We offer expert management of the development and construction process so institutions can focus on their core missions.
We help institutions understand the value of their portfolios, leverage them for optimal gain, and unlock capital from new sources by appraising their real estate according to the current market environment.
By prioritizing preventative maintenance, sustainability, and energy management within a campus environment, an institution can see substantial cost savings. We assist in identifying and executing on proactive management approaches for individual facilities or across an entire portfolio.
The Life Cycleof Education
Early ChildhoodEducation
PublicCharterSchools
Private K-12Schools
Colleges &Universities /
Student Housing
ContinuingEducation
Education Technology
Education TechnologyEd
ucat
ion
Tech
nolo
gy
Education Technology
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LEARNING COMMUNITIES
L E A R N I N G
EducationServiceCompanies
Private K-12Schools
Vocational Schools
Colleges &Universities
Investors/Financiers
StudentHousing
PROJECT & DEVELOPMENT SERVICES
TENANTREPRESENTATION
FACILITYSERVICES
OWNERREPRESENTATIONTargeted Marketing
Strategic & Analytic Expertise
Operational EfficienciesSurplus space has value, especially when properly marketed in the optimal market environment. Cushman & Wakefield has the experience, local knowledge, and relationships to target the most appropriate tenants or buyers for a specific property, regardless of location around the globe.
An institution can lower overhead costs, improve efficiencies, and ensure brand recognition by utilizing C&W Services to streamline janitorial, maintenance, and landscaping services.
The need to align modern, sustainable facilities with values, mission, and the student experience is key to attracting and retaining students. We help develop and implement acquisition strategies that ensure the appropriate real estate for every element of an institution.
Real estate is vital to the long-term success of educational institutions.A strong understanding of market dynamics gives our specialists the tools to identify real estate opportunities and craft strategies that maximize competitive advantage, while maintaining focus on the values, mission, and long-term objectives of institutions.
STRATEGICCONSULTINGStrategic PlanningCreating a 3-, 5-, or 10-year master plan is essential for the growth of an institution. Cushman & Wakefield can help define the highest and best use of owned/leased land and buildings, develop a long-term strategy that maximizes portfolio value, and communicate the plan to current and future students, alumni, and staff.
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HARVARDUNIVERSITY
OPTIMALSUB-OPTIMAL
Using varied datasets and analytical tools, Cushman & Wakefield strives to provide education sector clients with relative insight so smart business decisions are made.
HOW TO ATTRACT &RETAIN STUDENTS
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Target LocationsMaking Well-Informed Real Estate Decisions
The educational landscape is changing rapidly. As it becomes increasingly specialized and competitive, an optimal location is essential to the success of any institution. Utilization of segmentation, demographic and real estate data provides valuable insights allowing institutions to make well-informed real estate and business decisions. As your partner, we work to visualize and prioritize the environment most beneficial to your business needs. Our approach is highly analytical. We integrate segmentation and demographic factors, as well as demand determinants into a comprehensive strategy to inform your real estate decision-making. Finally, all viable real estate opportunities are overlaid in target locations allowing the institution to decide on which locations to pursue.
Cushman & Wakefield’s Proprietary Data-Driven Approach
Private Schools Private School Student Concentration Total Tuition Revenue
Total Tuition Revenue based on students who pay over $22,500 in tuition
Religious Non-Religious 0 10.5Miles
§¦90
§¦290
£¤41
£¤41
Armitage Ave
Chicago Ave
Milwaukee Ave
Ohio St
Grand Ave
Washington Blvd
Madison St
Roosevelt Rd
Cermak Rd
Diversey Pkwy
Clybourn Ave
Belmont Ave
Addison St
Irving Park Rd
Clark St
Broad
way
Lawrence Ave
Foster Ave
Peterson Ave
Bryn Mawr Ave
Lake Sho
re Dr
Sh
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North Ave
Lincoln Ave
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Elston Ave
Ash
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Lincoln Ave
Ridge Ave
Sh
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Montrose Ave
£¤41
£¤41
£¤14
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¬«64
¬«38
§¦94
§¦90
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§¦55
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Division St
Cal
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North Ave
Division St
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Randolph St
Addison St
Rac
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Ash
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Roscoe St
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Jackson Blvd
Cushman & Wakefield uses mapping and data technology to highlight available real estate opportunities in target demographic areas. Our tools address multiple factors, including your competition.
Given demographic data and demand determinants, we target properties in optimal locations with efficient space. We work to ensure the space aligns with your values, mission and long-term goals.
Total Number of SchoolsSchools over 200 students only
649
Total Number of Private School Students 300,201
Total Number of Private Students with Tuition Data 173,585
Total Market Size Based on Tuition Paid $2,472,002,215
Total Market Size Based on Tuition Paid Greater than $22,500 $1,445,767,723
Weighted Average Tuition $14,241
Total Number of DependentsHousehold Income Between $100,000 - $200,000
562,732
Total Number of DependentsHousehold Income Greater than $200,000
272,671
Total Number of DependentsHousehold Income Greater than $100,000
835,403
Percent of Dependents in Households Earning Over $100,000 that Attend a Private School
35.93%
Percent of Dependents in Households Earning Over $200,000 that Attend a Tuition School that Charges Greater than $22,500
15.97%
Private School Universe Survey 2009-2010, Cushman & Wakefield Tuition Database
New York-Newark-Jersey City, NY-NJ-PA Metropolitan Statistical Area
$0
$200,000,000
$400,000,000
$600,000,000
$800,000,000
$1,000,000,000
$1,200,000,000
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
< $7,500 $7,500 - $15,000 $15,000 - $22,500 $22,500 - $30,000 > $30,000
Private School Students & Market Size by Tuition Range
Total Students (#) Market Size ($)
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
1 2 3 4 5 6 7 8 9 10 11 12
Average Weighted Tuition by Grade by School Type
Catholic Other Religious Non Religious
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
1 2 3 4 5 6 7 8 9 10 11 12
Private Students by Grade by School Type
Catholic Other Religious Non Religious
0
50
100
150
200
250
300
1 2 3 4 5 6 7 8 9 10 11 12
Private Schools by Grade by School Type
Catholic Other Religious Non Religious
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
0 1 2 3 4 5 6 7 8 9 10 11 12
Top 5 Tuitions Charged by Grade
$890,242,416
$416,417,691
$1,165,342,108
$0 $200,000,000 $400,000,000 $600,000,000 $800,000,000 $1,000,000,000 $1,200,000,000 $1,400,000,000
Catholic
Other Religious
Non Religious
Total Market Size based on School Type
$4,704 $10,354 $18,239 $26,458 $35,660 Average Weighted Tuition
Innovative tools help determine potential demand in markets based on search data. We analyze and index volumes of searches per year and per region of the country to identify areas of maximum demand.
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KIPP Public Charter Schools• Started in Houston, TX in 1994• Largest public charter school system in US• 200 schools in 20 states serving 80,000 students
CHALLENGES• Desire to relocate/purchase abandoned hospital building
for growth in Gulfton area of Houston, TX• Seller wanted acquisition transaction to be completed in
40 days
APPROACH• Planned adaptive re-use of 150,000 RSF hospital building• Turned down KIPP original offer and awarded sale to
alternative use• Returned to KIPP after original transaction fell through
RESULTS• Acquired site 25% lower than original offer and asking
price• 9-month rehab and overhaul of hospital• New building will serve as a neighborhood gathering
center, in addition to new school and office space
Dulwich College International (DCI)• Private, independent school founded in southeast London
in 1619• Since 2000, ten (10) Dulwich branded schools have been
built in China, South Korea, and Singapore• Total enrollment across the system is approximately 11,000
pupils
CHALLENGES• North American/Europe private, independent school
markets are mature and have resistance to change• Cost to build/remodel school facilities are high and use is
specialized• Timing the opening of a school in the Fall is critical to the
immediate success of the school
APPROACH• Desire to expand/grow brand in North America, Middle
East, and Europe• Designed proprietary demographic/psychographic model
to measure/benchmark supply/demand• Identify capital partners to assist in the expansion of the
development/infrastructure
RESULTS• Implemented model which aligned cities with demand and
graded each city based on KPI’s set by DCI• Created pool of investors who will assist with capital to
build new facilities/renovate existing buildings• Actively working to open multiple locations across the
world, which will enhance brand and image of DCI
2014Donors’ Report
Ancora Education• Founded in 2012• Group of 12 private, post-secondary schools located in TX,
AZ, OK• Programs include allied health, nursing, culinary arts, and
skilled trades
CHALLENGES• 10 of 12 leases expiring in sixteen a 16-month period• Prioritizing which campuses to relocate and build new vs.
renew in place and renovate/remodel• Existing lease language was landlord favorable and placed
deferred maintenance capital expense on each campus
APPROACH• Align portfolio and streamline capital sufficient enough for
each campus to operate effectively • Engaged project management team to ensure timelines
and budgets were controlled for each project• Created analysis to benchmark student/program demand
in various zip codes to ensure new campuses would be profitable
RESULTS• Relocated 6 campuses in a 9-month span• Total combined construction cost of $10M was delivered
on time and within the budget for each campus• Renewed/restructured 4 campus leases which allowed
Ancora Education savings of $3.0M over the next 10 years
University of Maryland (UMD)• Prominent public research university located in College
Park, MD• Average annual enrollment of 37,000, including both
undergraduate and graduate students• Annual operating budget of $1.75 Billion, per year
CHALLENGES• Large real estate portfolio with many stakeholders• Managing projects within debt capacity constraints • Identifying alternative sources of financing
APPROACH• Identify ways UMD can leverage their assets and resources
to address current and future needs• Provide guidance to UMD to structure/negotiate complex
P3 transactions • Projects focused on re-developing publicly owned assets
to enhance local community• Drive economic development and support State of
Maryland’s goals for transit-oriented development
RESULTS• Structured ground lease transactions with developers
to construct flex office spaces to house UMD affiliated technology companies
• Built public charter school on campus property to attract more faculty and staff to live in/around campus
• Negotiated agreements with private companies to invest capital into UMD owned buildings and then leasing for commercial use
Select Experience within the Education Sector - Case Studies
FIRST LAST
Craig CassellGlobal Leader, Education Advisory [email protected]
FIRST LASTTitleMarketemail
Cushman & Wakefield Education Advisory Group
Cushman & Wakefield Primary ServicesAgency Leasing / Asset Services / Capital Markets / Facility Services
Investment & Asset Management / Global Occupier Services
Project & Development Services / Tenant Representation / Valuation & Advisory
Copyright © 2018 Cushman & Wakefield. All rights reserved. Publication 01.2018
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70+COUNTRIES
45,000EMPLOYEES
About Cushman & Wakefield Cushman & Wakefield is a leading global real estate services firm with 45,000 employees in more than 70 countries
helping occupiers and investors optimize the value of their real estate. Cushman & Wakefield is among the
largest commercial real estate services firms with revenue of $6 billion across core services of agency leasing,
asset services, capital markets, facility services (C&W Services), global occupier services, investment & asset
management (DTZ Investors), project & development services, tenant representation, and valuation & advisory.
To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.
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