Dive Brief:
- Despite the common storyline of shrinking enrollment and dire financial straits among higher education institutions, many are still finding reason to upgrade and expand their campuses.
- University Business’ annual construction report shows that nearly half of 319 respondents reported being within one year of completing major building projects.
- According to University Business, colleges and universities are building because of enrollment growth and the need for facility upgrades, generally paying attention to green building techniques, classroom design that favors student engagement, and the need to blend old and new architectural styles.
Dive Insight:
Even when university finances are a concern, putting money toward new construction is often seen as a long-term investment strategy. College and university leaders look to future enrollment growth, in part spurred on by state-of-the-art facilities. University Business also reports greater institutional pride as a consequence of major building projects. If new buildings can foster better student experiences on campuses, institutions will see additional revenue not only from new students but from retention of existing students. Over-leveraging is always a danger, however. If financially stable institutions tie up much of their money in capital projects, there is a chance they won’t have the cash flow necessary to weather short-term storms.