13 Aug From Hatching to Holding: Is It Time for the “Outcubator”?

We’ve all heard the age-old riddle: Which came first, the chicken or the egg? In the world of many DC charter schools, we surprisingly know the answer. It often wasn’t the chicken, and it wasn’t the egg. It was the Charter School Incubator. Before a school could find its footing, or a new educational model could be laid, we needed a place for it to happen. In the early days of our movement, the Charter School Incubator Initiative, a powerhouse public-private partnership between Building Hope and OSSE, provided that vital warmth. It gave over 25 DC schools a temporary home during their most vulnerable early years.

But as our sector matures, the questions we’re asking are changing. We aren’t just asking how to hatch new schools anymore; we’re asking what happens when the nest needs to change hands.

The Shift: From Growth to Grounding

For decades, the goal was expansion. Today, the landscape looks different. Enrollment growth in many cities has slowed, and we are entering a season of renewal cycles that may result in some schools shrinking or exiting the sector entirely.

When a school closes its doors, it leaves behind more than just a legacy; it leaves a building. These facilities are the lifeblood of our movement, yet they face a precarious “in-between” stage. Without a plan, these buildings risk sitting dark, losing their connection to the community, or falling out of the charter sector altogether.

Introducing the “Outcubator” Concept

If the Incubator was designed to bring schools into the sector, we now need a mechanism to help schools move through or out of it. We need an Outcubator.

Imagine a dedicated real estate development product or trust designed to:

• Acquire facilities from departing tenants.
• Hold the space (even if it sits dark for a year or two) while the sector determines the best next step.
• Bridge the gap for schools looking to expand, merge, or repurpose a site for alternative social or private sector use.

The Incubator was a great product for a great time. It knew when its job was done. Now, we need a new tool to manage the facilities we’ve fought so hard to secure.

The Need for Social Capital

Just like the original Incubator required an operating grant and federal credit enhancements to succeed, the Outcubator cannot exist on private investment alone. It requires social capital to de-risk the process.

To keep our facilities in play, we need the sector to think bigger about funding “holding periods.” By securing guarantees for debt and operating costs during vacancies, we ensure that a temporary closure doesn’t lead to a permanent loss of a community asset.

Thinking Bigger

Whether local population rebounds and triggers a new wave of growth, or we continue to move toward a model of consolidation, our buildings must remain flexible. The Outcubator isn’t just a real estate play; it’s a strategy to ensure that any city’s educational infrastructure remains robust, no matter which way the wind blows.