US postsecondary institutions acquire offices, hotels at “bargain prices” during commercial real estate slump


As private-sector companies with hybrid workforces reduce their square footage, Jane Margolies for the New York Times reports that several US-based colleges and universities are taking advantage of the “bargain prices” for commercial office buildings. Margolies reports that 49 private institutions and 16 public institutions have purchased office buildings since 2018, capitalizing on the current commercial real estate market slump at a time when they need to expand without waiting for the construction of a new building. “It’s a different use but doesn’t need special changes to the building,” said economic historian and author Dror Poleg, adding that this trend “stands out because almost nothing else is happening on the office market.” Some institutions have also acquired hotels for use as student housing.

New York Times (Acct Req)