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niversities are emerging as active players in the Los Angeles real estate market, driven by their need to expand and meet growing demand from students. "Universities need real estate to function," says Stuart Gabriel, professor at UCLA Anderson School of Management. As universities like UCLA, USC, and Arizona State University (ASU) expand their campuses, they are acquiring properties outside of their traditional footprints.

    For example, UCLA has made several high-profile purchases in recent years, including the former Marymount California University campus for $80 million and the historic Trust Building downtown for $40 million. These acquisitions have allowed UCLA to establish satellite campuses focused on sustainability and climate change, as well as expand its research capabilities.

    USC has also been expanding its reach, opening a campus in Washington D.C. called the USC Capital Campus. The school acquired a 60,000-square-foot building for $49.4 million and is using it to offer programs related to fields such as politics, international relations, and business.

    Smaller universities like Pepperdine University and Occidental College have also been active in expanding their campuses through real estate purchases. Meanwhile, out-of-state schools like ASU are filtering into the Los Angeles market, with plans to establish a presence in the city's vibrant downtown area.

    Experts believe that this expansion is mutually beneficial, promoting healthy competition among universities and making education more accessible by broadening its reach. "Education leads to a much better society," says Mark Tarczynski, executive vice president at Colliers. "I think we're going to see a lot more competition amongst universities."

    While some may view this expansion as competitive, others see it as an opportunity for universities to make positive impacts on their surrounding communities. "Universities are generally seen as making positive impacts on their surrounding communities," says James Birkey, senior vice president at Jones Lang LaSalle Inc.

    As the Los Angeles real estate market continues to evolve, one thing is clear: universities will play a significant role in shaping the city's landscape and driving economic development. By expanding their campuses and establishing new locations, these institutions are not only advancing their own missions but also contributing to the growth and prosperity of the surrounding communities.