While the economic downturn has stalled commercial projects in Boston, many of the city?s colleges and universities are moving forward with expansion plans.
?Schools have a definite advantage over private developers in this economy,? said David Begelfer, CEO of the real estate trade group NAIOP Massachusetts. ?They have a captive audience in students - who will use the new space, and their tuition revenues will finance it.?
While the developers of the Filene?s block, Fan Pier and Seaport Square lack tenants and financing to start construction on their long-planned buildings, Emerson College and Suffolk University spent $122 million on performance space, dorms and classrooms for their Downtown Crossing campuses in 2010.
This year will see even more shovels in the ground:
Northeastern University plans to build a 16-story residence hall on Huntington Avenue at the YMCA.
Berklee College of Music is proceeding with a $65 million, mixed-use building on Massachusetts Avenue that would house a 350-student dorm.
Wentworth Institute of Technology recently won city approval for a 10-year master plan that includes two projects expected to break ground in 2011.
Boston College is ready to commence construction on more than 400,000 square feet of construction and renovation projects at a cost of $143 million.
?Some schools are reaping the benefits of recouping up to 90 percent of their endowments that were lost in the economic tsunami of the last two years,? said John Fish, CEO of Suffolk Construction. ?As a result, the boards of trustees at these institutions have given a vote of confidence to move forward with these aggressive initiatives.?
Recovering endowments couldn?t have come at a better time, Fish said. He is convinced that schools are facing increased competition.
?These colleges and universities recognize that, in order to attract students, they must upgrade their campuses to make them state-of-the-art in technology and innovation,? Fish said.
Jack Dunn, a BC spokesman, said the school can finance its construction, in part, through a $22 million donation from Patrick Stokes, a BC alum who is the retired CEO of beer maker Anheuser-Busch.
?We are in a position to build at this moment because of skilled fiscal governance and the generosity of Mr. Stokes,? he said. ?As we speak, we are doing a $150 million in construction projects.?
John Nucci, vice president of external affairs at Suffolk University, said his school has been able to proceed with an aggressive construction schedule due to tax-exempt bonds from MassDevelopment.
The school?s latest project, a $68 million academic building on Beacon Hill at 20 Somerset St., will house Suffolk?s New England School of Art and Design. The 10-story building will replace former MDC offices. Contractors are removing asbestos from the facility, and demolition is slated to begin within a few weeks.
John Palmieri, director of the Boston Redevelopment Authority, said Boston?s student population is growing and schools are expanding based on demand
?Boston continues to be a very attractive place for students,? he said. ?It?s clear that these schools can support improvements through tuition, endowments that are coming back and philanthropic giving.?
