Property Investors Bet on Rising Demand for U.S. Charter Schools

Article by Brian Louis - Jan 11, 2012


Summary: Charter schools are now, and will soon be much more, a sought after solution to waiting lists for existing charter schools and those wanting out of general government schools. For example, in Savannah there is a waiting list for Savannah Arts Academy and to fill this need, a major university in Michigan is applying for a charter with the city and county. I am sure more will follow.


Key Quotes:
More than 400,000 children nationwide are on waiting lists for the schools, the national alliance said in a December statement. Demand has increased as parents seek alternatives to traditional public schools.


The schools charge no tuition. They receive funding from municipal, state and federal tax dollars and operate under a charter that’s granted by the state or a local authority, according to a May report by Ernst & Young LLP. Each school has its own governing board.


While school landlords may eventually profit from a sale, income primarily comes from long-term lease agreements with operating companies.


Charter schools are “going to be a bigger piece of the business” for the landlord in the long term, Craig Mailman, a New York-based analyst at KeyBanc Capital Markets Inc., said in a telephone interview.




Read the full article at Property Investors Bet on Rising Demand for U.S. Charter Schools.


A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga