According to JLL, universities are launching partnerships with co-working spaces post-pandemic. The higher education system aims to provide a new revenue stream to cope with COVID restrictions on campus.
The global shift towards remote work left traces in several fields and industries. From Melbourne to Arizona, universities are embracing hybrid models to cope with the pandemic restriction.
For example, Purdue University started a partnership with Carr Workplaces. The aim is to provide flexible office space in the Discovery Park District with access to school facilities.
As John Mortensen, education solutions lead in APAC for JLL’s Work Dynamics group, states: “Universities are recognizing the value to the wider community of their real estate, facilities, and talent. Conversely, businesses bring innovation and energy to universities.”
In some university co-working arrangements, like at the University of Arizona, students work out of the facilities. The University of Melbourne offers a tech hub in partnership with the technology-focused flexible space YBF. Similar arrangements are happening in Asia and China.
Universities and Co-working Spaces Partner Up To Cope With Pandemic Loss
Joining forces with co-working spaces, universities offer an ideal working spot for remote workers. This type of partnership is a solid strategy to attract more commercial tenants to the campus.
After over a year of traveling restrictions and distance learning, universities needed a new revenue stream to cope with the loss of international student enrolments.
- Australian universities lost A$1.8 billion (US$1.4 billion) revenue in 2020, expecting a further loss of A$2 billion this year.
- U.S. higher education recorded the most significant revenue decline in decades. The Federal Reserve Bank of Philadelphia estimates a further loss in revenue up to US$115 billion over the next five years.
- Because of the pandemic and Brexit, U.K. universities the funding hole is an estimated £2.6 billion (US$3.6 billion).
As Mortensen says: “Universities are facing huge pressure to reimagine how education is delivered and the role of the campus. They’re thinking about how to transition campuses from being single-purpose and not very well utilised, to being highly efficient, tightly run enterprises that cross pollinate with the community and industry to deliver the best education and employment outcomes and also generate cash flow.”
While the world of education is transforming with remote work, universities and co-working spaces join forces to cope with COVID restrictions.