MIAMI—Various factors impact vacancy rates in South Florida. Buta new CBRE research report is pointing to one thatmay not be top of mind for most brokers: for-profit campusdownsizing.

At issue are proposed federal regulations that aim to strengthenstudent outcomes at for-profit schools. CBRE is predicting theseregulations could impact office space absorptionand vacancy rates in some Florida commercial realestate markets. In fact, according to CBRE, at least threemajor institutions have reduced their officefootprint since the new school performance mandates were proposedin 2011.

“Under the proposed regulations, for-profit colleges that do notadequately prepare graduates for employment could lose access tofederal student aid,” says Quinn Eddins, CBREFlorida's director of research and analysis. “This aid accounts forthe majority of revenue for for-profit colleges.”