Source: Sightlines, LLC

College Campuses Continue to Add New Buildings in Spite of Increased Stress on Facilities Management Budgets, According to Sightlines Report

2017 State of Facilities in Higher Education report shines spotlight on trends and best practices that dominated 2017 and will continue to influence campus facilities across North America in 2018

GUILFORD, Conn., Jan. 31, 2018 (GLOBE NEWSWIRE) -- Many North American colleges and universities are pursuing a high-risk strategy to build new campus facilities as a way to reverse lagging student enrollment, according to a new report from Sightlines, a Gordian company and leader in facilities intelligence and analysis for higher education institutions.

The 2017 “State of Facilities in Higher Education” report from Sightlines found that, overall, there was more than 10 percent growth in campus space from 2007-2016 (the most recent period for which data is available), eclipsing enrollment growth of just 8 percent for the same 10-year period. This is the fourth consecutive year Sightlines has documented a trend of space growth outpacing enrollment growth on North American college campuses.

“In light of the facilities management challenges facing higher education institutions -- notably large segments of aging building stock and flattening if not declining enrollment trends -- it’s extraordinary to see that many higher education decision-makers are choosing to add new buildings to their campuses,” said Mark Schiff, president of Sightlines. “While our research indicates that institutions are taking steps to invest more strategically in facilities resources, the vast majority continue to underestimate the renewal needs of deteriorating spaces while pushing high-risk investments into new facilities.”

The gap between space growth and enrollment growth is even more pronounced for master’s and baccalaureate institutions. Master’s institutions saw an average enrollment growth of less than 4 percent from 2007-2016, but a stunning growth rate in campus space of more than 12 percent over that same time period. Baccalaureate institutions have experienced minimal enrollment growth since 2007 but still averaged a 6 percent growth in campus space over the past decade. The only exception was research universities, where 14 percent enrollment growth from 2007-2016 exceeded an average of 11 percent growth in campus space for the same period.

Sightlines’ fifth annual report is available here. The study includes data from 366 higher education institutions in the U.S. and Canada, with a collective enrollment of 3.1 million students and 1.5 billion total square feet of campus space, including more than 52,000 buildings. Approximately 40 percent of the institutions in the study were private and 60 percent were public.

Other highlights in the 2017 report included the following:

  • Campus facilities operations budgets have failed to keep up with inflation, creating stress on service levels. The report found that average campus facilities operating budgets rose from $5.51 in 2007 to $5.94 in 2016, a nearly 8% increase; the CPI-U as reported by the federal government over that time has grown nearly 15.5%, almost twice as much.
  • A huge wave of campus facilities construction in the 1960s, which accommodated the surge in Baby Boomers, is reaching the end of its usefulness in the next decade, creating significant stress on institutions as to what to do with those buildings. This wave of aging buildings now represents 40 percent of the space on campuses.
  • Another large wave of campus facilities construction in the 1990s-2000s will require massive maintenance outlays in the next decade, presenting a significant capital demand on institutions. This wave of further enrollment growth and expanding program demands represents another 30 percent of campus space.
  • Many institutions are recognizing the expanding need for facilities maintenance resources and, since the downturn of 2008-09, have been increasing maintenance budgets to tackle the challenge. In fact, even in the face of tremendous space growth to match enrollment growth, facilities funding at research institutions is up 14 percent. While overall facilities funding levels are down from the 2007-2009 window where resources often effectively met need, funding at baccalaureate and master’s institutions has in recent years been on the rise.
  • Oddly, institutions don’t extend this maintenance expansion trend to their landscape programs. In spite of the fact that landscaping is a relatively inexpensive place to invest operating dollars, grounds coverage areas have actually decreased 3-4 percent over the past decade.

“Given the demands of managing more space with fewer resources and at greater impact to the institution’s overall recruitment and retention goals, successful facilities departments are being pushed to develop creative responses to these challenges,” said Schiff. “Every campus we see developing effective solutions has in place programs to analyze objective data and utilize comparative metrics to track performance, communicate accomplishments and articulate needs to the community or leadership.”

The 2017 “State of Facilities in Higher Education” report analyzes new trends in higher education space management, provides insight into the challenges impacting campus facilities, and shares best practices for how college leaders can fund and manage their facilities in light of these challenges. The full report can be downloaded at: http://www.sightlines.com/insight/2017-state-of-facilities-in-higher-education/.

For more information about how to become a Sightlines member, please email insights@sightlines.com.

About Sightlines

Founded in 2000, Sightlines, a Gordian company, gives colleges and universities the independent data and perspective they need to make critical decisions about their most valuable assets – their facilities. Sightlines stewards the industry’s most extensive verified database, allowing more than 450 institutions across the U.S. and Canada to benchmark an institution’s facilities against universities and colleges across the nation. Sightlines’ flagship offering for members is ROPA+, a fully integrated solution for facilities intelligence that leads members through a comprehensive process of facilities benchmarking and analysis. Other Sightlines solutions provide higher ed executives with insights to assist with capital planning, space management and campus sustainability initiatives. For more information, please call 203.682.4952, go to http://www.sightlines.com or email insights@sightlines.com.

About Gordian

Gordian (www.gordian.com) is a pioneer of Job Order Contracting and leader in construction data, software and services for the construction lifecycle. From planning to procurement to maintenance and operations, Gordian’s expanding portfolio of solutions includes the RSMeans data products and services, as well as the Sightlines facility benchmarking and analysis solutions. Gordian serves clients from every sector by providing efficient and effective solutions that maximize efficiency, optimize cost savings and increase quality across the entire building lifecycle.

Media Contact:
Daryn Teague
Teague Communications
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dteague@teaguecommunications.com