2019
FACILITIES &
CONSTRUCTION BRIEF
An Overview of the Education
Construction Scene
EDUCATIONAL
CONSTRUCTION SPENDING
The total dollar value of education construction
work done in the U.S. (including all 50 states and the
District of Columbia) is estimated to have exceeded
$98.9 billion in 2018. That is a 9-percent increase
from the actual amount spent on education con-
struction in 2017.
YEAR
TOTAL
(Millions of Dollars)
2004 $ 74,251
2005 $ 79,687
2006 $ 84,929
2007 $ 96,758
2008 $ 104,891
2009 $ 103,203
2010 $ 88,405
2011 $ 84,986
2012 $ 84,673
2013 $ 79,059
2014 $ 79,681
2015 $ 83,518
2016 $ 91,953
2017 $ 90,734
2018 $ 98,891
CAPITAL INVESTMENT IN REVIEW: MORE DATA
The amount of capital investment ded-
icated to existing campus facilities by North
American colleges and universities reached
an 11-year high in 2017, according to a new
report from Sightlines, a Gordian company.
The sixth annual “State of Facilities in Higher
Education” report found that total capi-
tal 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.
The report also identified a potentially chal-
lenging trend for college facilities managers.
A deep dive into the ages of existing buildings
on hundreds of campuses indicated the com-
ing need for major capital investments.
Other notable trends identified in the report
included:
• Campus expansion continues despite de-
clining enrollment —The educational land-
scape has become increasingly competitive
in recent years, causing institutions to double
down on the construction of new facilities.
This strategy may pay off for research institu-
tions (14 percent increase in space, 16 percent
increase in enrollment since 2007), but it will
likely leave many masters institutions (17 per-
cent increase in space, 4.5 percent increase in
enrollment since 2007) with swollen campus
footprints and declining tuition revenues to
cover the costs.
• College debt continues to pile up — With
enrollment revenues, endowment support,
and state funding all on the decline, insti-
tutions have financed their capital invest-
ments by borrowing money at low interest
rates for the past decade, compounding ex-
isting debt issues. Total debt funding (more
than $41 billion in 2016, according to The
Atlantic) may prove harder to service if
interest rates continue to rise.
• Th
ere’s no stopping the backlog — Despite
positive capital investment trends, funding
is unable to keep pace with the mounting
list of project needs. Backlogs continue
to grow and significantly impact campus
operations and the overall experience of
students, faculty, staff, and guests.
The report is based on comprehensive data
collected and analyzed by Sightlines (www.
sightlines.com) from more than 360 college and
university campuses annually, which collectively
operate more than 52,000 buildings that serve
3.5 million students.
Educational construction spending includes expenditures for new buildings and structures,
additions, renovations, rehabilitations, major replacements (such as the complete replacement of a
roof or heating system); mechanical and electrical installations; site preparation and outside con-
struction of fixed structures or facilities such as sidewalks, parking lots, and utility connections.
Educational facilities include preschools, primary/secondary schools, higher education facilities,
trade schools, training facilities, and other educational spaces including museums and libraries.
EDUCATIONAL CONSTRUCTION
EDUCATION CONSTRUCTION (Millions of [Millions of Dollars]
Dollars)
$110,000
$100,000
$90,000
$80,000
$70,000
$60,000
$50,000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
essentials | www.edmarket.org 21