Capital Investment in College Buildings Soars to 11-Year High

Mark Schiff

GUILFORD, CT—Total capital investment into existing properties on college campuses reached nearly $5 per gross square foot in 2017. This caps a steady climb that began in 2011 and is the highest figure recorded since 2007, according to Sightlines’s sixth annual “State of Facilities in Higher Education” report.

“Capital investment in existing properties has finally returned to — and even eclipsed — pre-recession levels,” said Mark Schiff, President, Sightlines. “In addition, a larger share of this funding is coming from recurring capital sources, as annual stewardship funds have increased by more than 50% from 2007 to 2017. These funds represent a long-term commitment to addressing building renovation needs. Still, the positive trends in capital investment levels and mix of funding are not keeping pace with growing project lists.”

Investment Drivers

Shortfalls in capital funding, aging facilities infrastructure, and increased program pressure to modernize functionally obsolete facilities are all driving a substantial need to renovate campus buildings. These needs, combined with declining enrollments, balance sheets bloated with long-term debt and reductions in state appropriations are going to require institutions to make difficult decisions on where to appropriate scarce renovation funds.