Universities are re-evaluating their property portfolios to cater for the new hybrid learning model

Griffith University’s move to secure the heritage-listed Treasury building for its Brisbane CBD campus is part of a growing wave of higher education institutions re-evaluating their property portfolios.

The former Treasury Casino building that has been secured by Griffith University as its Brisbane CBD campus.

Australian universities are re-evaluating their property portfolios to cater for the new realities of the hybrid learning model and the pressure of increasingly tight budgets.

The old style sprawling suburban campuses no longer address the new education norm where students are switching between online and on-campus learning depending on their course.

However, while online learning is increasingly relevant, JLL senior director, consulting, Rajiv Nagrath, said physical campuses were just as important than ever as students yearn for the campus experience.

But the campus is changing with buildings reflecting the higher education mantra – ultra modern, high tech and very green.

“While traditionally universities have set up their teaching programs in a structured manner, there’s a big focus now on adapting to the needs of the students to create memorable learning experiences,” he said.

“This means that the physical learning spaces and supporting technologies and amenities will need to be transformed. The traditional tiered lecture halls are no longer as necessary, given that more lectures are being delivered online.

“These spaces can therefore be repurposed to more collaborative learning spaces for interactive tutorials supported by seamless communication technologies, multiple screens to see the lecturer and content and flexible furniture arrangements to foster more dynamic interactions.”

There is also the need to be where the action is and be accessible to the student body and, the CBD is the place to be, especially for fee paying international students.

An artist’s impression inside Griffith University Treasury Building in the Brisbane CBD.

As part of this movement Griffith acquired the leasehold of the heritage-listed former Treasury Casino for $67.5m where it will create a university campus for some 7000 students and 400 staff with a planned opening in 2027.

It is currently considering all of its design and construction options – in line with the building’s heritage listing.

However, by 2035 the university says the iconic building, that was built in three stages between 1886 and 1928 on the corner of George and Queen streets, will be a hub for the University’s business, information technology, and law disciplines, as well as a centre for postgraduate and executive education.

Griffith University vice chancellor and president Professor Carolyn Evans said the CBD campus would serve as a “front door” for industry and community engagement, enabling partnerships with commerce, industry, and government.

“The Brisbane CBD campus will deliver an entirely new experience for students, staff, and partners alike,” she said.

“This flagship location will not only complement our existing South Bank campus but will enhance Griffith’s profile both locally and globally, making it an iconic hub of learning and engagement.”

An artist’s impression inside Griffith University’s Brisbane CBD campus.

Importantly, for the university’s bottom line, the campus will give international students the opportunity to live, work, and study in the heart of the city.

“The CBD campus will solidify Griffith University’s presence on the global stage, attracting talent from around the world to the 2032 Olympic Games city,” Prof Evans said.

Griffith is undergoing a major revitalisation of its physical and digital infrastructure as the university closes its Mount Gravatt campus by the end of 2025 and consolidates in its Nathan campus in Brisbane’s southern suburbs.

This year Griffith also moved its college – including its English language school – from Mount Gravatt to another heritage building at 333 Ann St.

Mr Nagrath said regardless of whether university buildings were in traditional sprawling campuses or in the CBD vertical campuses, they will need to be modernised and repurposed for the transforming nature of learning which also aligns with the universities’ sustainability goals.

“The challenge is that a lot of university buildings are from the ‘70s era which saw significant campus development because of government education reforms,” he said.

“The traditional sandstone universities with much older heritage buildings also face the challenge of repurposing teaching spaces for new ways of learning while preserving the invaluable architectural history of place.

“To create opportunities for investment, universities are looking at optimisation across their owned and leased portfolios to better align their footprint with the changing nature of their delivery models.”

The former Treasury Casino building that has been secured by Griffith University as its Brisbane CBD campus.

Mr Nagrath said universities may adopt various portfolio strategies depending on their business model.

For some universities this may mean reducing the leased footprint and bringing programs back on owned campus buildings, while others may look at leasehold solutions to quickly set up the right facilities in the right locations, including using CBD office buildings especially for the business and technology courses.

“CBD presence in major cities gives greater reach to universities with suburban and regional campuses and better options for students in terms of balancing work and study,” Mr Nagrath said.

Mr Nagrath said programs requiring specialist facilities like labs for science, medical and engineering courses would however continue to be on owned campus sites.

The University of Queensland in 2022 opened the multi-award winning 11-storey Andrew N. Liveris building which houses UQ’s School of Chemical Engineering, which features labs and technologies seldom seen in a tertiary capacity.

UQ also announced this year that it was cementing its presence in the rapidly growing biotechnology precinct in Brisbane’s south, announcing that its existing School of Pharmacy at Dutton Park on Brisbane’s southside will become its fourth campus.

Mr Nagrath said universities were undergoing portfolio realignment and some are also looking at divesting real estate assets to fund strategic developments.

“Other are partnering with business and industry to develop joint real estate solutions like coworking hubs and innovation labs which optimise the investment and provide synergies for research, innovation, and employment,” he said.

“The pandemic has reframed the critical significance of physical space for human connection and universities are redefining their campus environments to offer a vibrant, enriched, learning and community experience.”