When a landlord who has an older facility with a large volume of vacancy finds a single tenant with a good credit reputation and a viable use, the landlord is willing to risk investing money to retrofit the building. But it is more than a matter of filling a large vacant space with a credible tenant who pays an economic rent. Rather, the greatest value of such a tenancy is the improved value of the real estate project based on the strength of the tenant. This enhances the landlord's ability to finance the project to a higher level and at lower rates and improves the facility's resale value. A large vacant facility might sit unfilled for a long time.
Landlords compete aggressively for the opportunity to sign up a school tenancy.
In fact, landlords we have considered in this process have come back to us later asking for an opportunity to be alerted early on next time as they see a strong opportunity worth pursuing again. While this dynamic works well in communities that have high vacancy rates and low rental rates, one can generally find large, older buildings with substantial vacancy in any market. These are the facilities worth considering for a school conversion. Also be aware that even with extensive research, you might overlook some potential facilities. We were amazed by the number of proposals we received from landlords of buildings we had no idea were available and sites we would not have identified as available on our own.