- A new report from Moody's predicts higher education will yield operating revenue growth of between 10%-14% range for college and universities over the next 18 months, but also projects challenges beyond that window.
- The report suggests that rising costs for pension and workforce, combined with expected low returns in endowment investments and lowered revenues for specific states will reduce chances for a positive investment outlook.
- Schools below Ivy League and high-research institutional brands will struggle to maintain outreach to international students and faculty, which could also impact revenue possibilities.
Creating alternative cash flow options with mixed use space, innovation hubs and real estate holdings will become a major factor in the next five years for higher education. Uncertain political and financial structures will force schools to think of themselves beyond teaching, learning and research, but to use those outputs as offshoots into other industrial areas.