National MarketingTranswestern has impressive qualifications when it comes to helping nonprofits further their mission through real estate. In particular, the firm has helped charter schools develop and execute creative solutions that match each organization’s priorities and budget with inspired, flexible space for learning. Here, Casey Noel, Vice President in New York, shares insight that can help both landlord and tenant brokers advise on what types of space and/or developable land would appeal to charter schools.
First, the obvious question…Why the focus on charter schools?
Casey: Demand for charter schools, or independently operated public schools, continues to grow nationally, yet the supply of sites that would adequately house a charter school has not kept pace. In 2020, there were 7,400 charter schools nationwide serving more than 3 million students.* California, Texas, Florida, Arizona and New York lead the nation in enrollment numbers. This combination of high demand, low supply and government-backed funding for charter schools creates a worthwhile, low-risk opportunity for owners and developers – while at the same time providing more viable options for the schools themselves.
*U.S. Federal Register
Why is a charter school a compelling tenant?
Casey: There are several reasons. First, a charter school typically seeks a long-term lease to avoid any disruption to students and their families that moving might present. Second, schools are funded on a per-pupil basis by the government, which provides a high degree of certainty for rent payments. Additionally, and less known, as a community facility use, a charter school can satisfy requirements for Floor Area Ratio bonuses and increase the profitability of a site. It may also qualify for a real estate tax exemption.
In your experience, what do charter schools look for in a space?
Casey: Some schools are well-versed in the site selection process, while others need more guidance. Specifically, we like to point out five key site characteristics that schools should carefully consider: Zoning that permits school use As-of-Right; access to multiple forms of transportation; lot size that is larger than 10,000 square feet; “short and squat” building massing; and building layout to accommodate essential programming.
With input from the National Alliance for Public Charter Schools Owners, an organization I work with closely, we’ve created a quick guide for owners and developers that will help determine if a site is charter-school ready. This piece can assist landlords who are exploring creative options for vacant space. But it also serves as a useful checklist for tenant advisors who are looking to represent a charter school in a search for space. I’d be happy to discuss these issues further if you or a client has questions.
Casey Noel
Vice President – Nonprofit Practice Group
Tenant Advisory
New York, New York
