Building for the future

Emma Cleugh, partner at global property consultancy Knight Frank, offers advice to schools and universities across the UK on how to unlock value in educational buildings amid the coronavirus crisis, and why operators and investors should start planning now for the post-pandemic world

The outbreak of Covid-19 has significantly impacted almost every facet of our everyday lives, but nowhere is this more obvious than in the education sector. School classrooms and playgrounds, as well as university campuses, across the country have stood empty for weeks, as our society gets to grips with the effects of lockdown on our daily routines.

But what does this mean for the future of education?

It is likely that, not only will it force us to reconsider how education is delivered in the UK, but it will also make educational organisations reassess how they can use their physical spaces more efficiently and repurpose surplus real estate assets.

Reports from the kitchen-table classroom is that the novelty of learning from home is wearing thin, as parents struggle to balance work commitments with home schooling, while students miss their friends and daily social interactions that form a key part of the educational experience.

As with many things at this time, there is now an opportunity to rethink what educational platforms will need to deliver, and should provide, going forward, on account of changing dynamics in the educational market.

At one end of the spectrum, we are already seeing that the internet and ever-advancing artificial intelligence can provide us with facts, and, as a result, we have seen significantly increased investment in remote-learning platforms.

In some cases, there are obvious (albeit uncomfortable) advantages in substituting teachers for tech, including making education more flexible, accessible and affordable. This is especially true at a further and higher education level, where a long overdue ‘root-and-branch’ overhaul has already been identified

But there are significant risks too. Great teachers – and great settings – inspire, and for this there is no substitute.

As such, it is hard to imagine people and places vanishing completely from the heart of a good, well-rounded education; however it feels inevitable that some changes as a result of Covid-19 are already underway.

Lockdown has proved that nearly everything can be done online – including learning, communication, homework submissions and assessments.

Education is, however, so much more than facts, coursework and exams. It is the values that are instilled in us; it is deep interest in subjects that is stimulated by inspirational teachers in lively classroom debates. Such environments and experiences are hard to replicate on a webinar. The environments and people around us shape the way we, as individuals, move through school and university and into work and adult life.

As a result of this, we are beginning to see owner-operators Educational organisations are also now looking closely and investors across the education sector look at evolving at how their real estate assets can work ‘harder’ for them, technology in the context of their current property holdings, as to how they look to boost their income in other ways. and weigh up how to invest in both to achieve an optimum A straightforward example being the sale and leaseback mix. Thus, we seeing organisations seek to combine the of a student residence at a university, or the promotion best technology with efficient use of real estate – the aim and sale of surplus land or buildings for a senior living being to ensure the collective experience is enhancing and development, in order to generate capital. These funds can enriching both in reality and virtually. then be ploughed back into the technology

We are seeing owner-operators and and the real estate now required to ensure investors consider closely all of the land and buildings across their holdings, to decide what works well and what space Educational organisations are the provision of the very best resources. At Knight Frank, we are currently involved in a variety of projects of this could be better utilised and improved. A also now looking nature. blended model will, no doubt, emerge, closely at how What we have found is that many with a balance being sought between their real estate owner-operators and investors are already teachers, technology and the on-campus experience, with tech being front and centre far more than it ever was before. assets can work ‘harder’ for them looking to the future, considering how the requirements will change, and embracing a shift towards blended delivery models

In universities and international involving greater use of technology. Many schools, for example, the demand profile are eyeing far wider global audiences, and may change: we may see shorter stays by are taking an incisive look at their real overseas students but a vastly increased global audience. estate to see how it can better serve the business and enrich Students from around the world may tap into world-class the student experience. educational offerings via virtual lectures and online learning, Ultimately, with all of the changes that we are seeing, one but not may not stay long term. For these establishments, thing remains constant: we must continue ensure education more space may be needed for IT servers and to help has the power to positively change the world, even in facilitate lectures being delivered globally online. In addition, these uncertain times. This is where a fine balance between current expansion plans for more classrooms may need to increased use of technology and continued classroom-based be re-evaluated. learning will need to be reached. n