Class Acts | Our Take September 2024

Cities and universities must align to thrive. [Click here.]( to view with images. To ensure delivery to your inbox, please add [CBRE Group Inc.](mailto:Capitalmarkets@cbrecommunications.com) to your address book. [OurTAKE logo] Expert perspectives on what matters most in commercial real estate September 2024 This month, Michael McShea shares lessons on how cities and universities are using real estate to benefit each other. Class Acts 3-min read By [Michael McShea]( Executive Vice President, Public Institutions & Education Solutions [Class Acts] Cities and universities must align to thrive. As fall approaches and parents like me briefly return to school with their college-aged students (along with all their possessions), I'm reminded of the excitement of being back on campus. There's a palpable energy at the first football game, in the bookstore and around the classmates reuniting after summer break—an energy that extends beyond the dorms and quads. At this time of year, cities that are home to higher-education institutions also feel especially [vibrant](. The spark of activity, people and business is a welcome counterpoint to the [challenges cities continue to face]( from remote working, housing shortages, aging infrastructure, population migration and budget constraints. Much the same way, universities, while buzzing with the exhilaration of a new term, are grappling with declining enrollments, rising costs and aging facilities. I think about these challenges a great deal. While the needs of cities and universities may be different, the solutions often find common ground in real estate. Universities, with their prime properties and influential footprint, have the potential to drive transformation in their local markets, creating opportunities for collaboration that benefit everyone. In fact, cities and institutions are already working together to lift communities across the country. I raised my family in Annapolis, Maryland, and have seen firsthand the positive influence of the U.S. Naval Academy on that community. Likewise, San Diego, where I now live, benefits from its higher education system, which drives research, innovation and housing throughout the region. When cities and universities collaborate, incredible outcomes can take shape. By way of example: Gallaudet University in Washington, D.C., known for its programs for the deaf and hearing-impaired, is partnering with its surrounding neighborhoods to create more lively public spaces using [DeafSpace design principles](. The university is also repurposing buildings as spaces for student and public education and engagement. These projects foster campus-to-community synergy and create new opportunities for neighboring businesses to thrive. Likewise, the University of California, San Diego has converted underused spaces in its East and West Campuses to mixed-use developments featuring research facilities, office space and residential housing. The expansion has attracted tech companies and research organizations, creating jobs and boosting the local economy while advancing UCSD's mission. The University of Chicago is leading a community redevelopment project in the nearby Woodlawn neighborhood. New residential buildings, retail and community facilities are stimulating local economic growth, revitalizing the area and enhancing the quality of life for all residents. At the same time, these spaces are creating more occasions for connection, collaboration and commerce among people on campus and in the community. [Finding shared opportunities]( like these can start with asking a few foundational questions. Does a city need affordable housing? [Since the pandemic]( fewer students are living in dormitories. Unused dorms could be repurposed as affordable housing or temporary residences for unhoused individuals. Do area seniors want to age in place? Campus housing amenities—such as dining services, fitness facilities and medical and community spaces—match what seniors often seek in housing. Are there opportunities to generate revenue? [Partnering with the private sector]( can transform vacant land and outdated campus buildings into retail and entertainment venues that benefit both the university and the surrounding community. Can education take a different form? Vacant campus buildings could become centers for vocational training, after-school programs for children, or continuing education for adults, providing long-term benefits. As cities and educational institutions navigate this period of change, we can find ways for them to collaborate and spaces for this important relationship to flourish. [Collaborating to create vibrant communities]( will help both cities and universities thrive. 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