As the market and the economy change, especially in the negative direction, brick and mortar stores are increasingly closing up shop! But, what to do with all of the available commercial real estate open for lease?
Well, before addressing that question, let’s think for a moment about public schools. When populations increase, property taxes increase as the properties increase in value. Schools become beneficiaries of this increase in property tax revenue. Now, public schools must expand in order to accommodate for the increase in enrollment. Funding to expand schools, which in effect are brick and mortar institutions, increases as the property tax revenue increase. But what happens when population and property values decrease? The schools must still maintain their expanded size, but how do schools contract with the economy and population changes?
The solution: host public school courses in open commercial real estate leases!