Oxford University has held a "productive meeting" with representatives of squatters who moved into a former power station it owns.
The group of 25, known as Iffley Open House, claimed squatters' rights in The Old Power Station owned by Said Business School on Sunday.
They previously stayed at a car showroom owned by Wadham College.
The university said it was "deeply sympathetic to their need for somewhere safe to live".
It added: "The university notified them that the Old Power Station is not a safe building for habitation.
"But we want this to be the start of a dialogue with Iffley Open House, and further meetings will be arranged in the future.
"There is a disastrous shortage of facilities for the homeless in Oxford and we commend Iffley Open House for drawing attention to the crisis."
The institution is in the process of developing the site in Osney, west of the city centre.
It has been using part of the building to store thousands of items from the Museum of the History of Science and the Pitt Rivers Museum.
Ten volunteers are thought to be working with the homeless people.
The group had been using an old car showroom as a homeless shelter since New Year's Eve.
Wadham College told the squatters to leave because pre-demolition work was set to begin.