Putting the Built Environment to Best Use

Despite widespread underutilization, the demand for space on college and university campuses remains persistent and difficult to curb. When every stakeholder views space as the answer to their needs, unchecked growth becomes inevitable. However, in many cases, enrollment has remained flat or declined while campuses continue to add square footage. The result: institutions are managing significantly more space per student than ever before, further straining operational budgets and compounding long-term financial risk.

Establishing a strong foundation is essential for any institution seeking to maximize the use of existing resources. To support this effort, EAB’s report identifies four core practices that are critical to effective space governance and 10 space management tactics to reduce costs, disrupt growth, improve utilization, and creatively source funding. Download the full report or read the executive summary below.

The financial burden of empty space

In an era of rising costs and shrinking margins, colleges and universities can no longer afford to ignore one of their most significant (and underleveraged) assets: physical space.

Although labor expenses make up most of operational costs, the facilities footprint remains a silent driver of institutional financial stress, with new construction often exceeding $600 per square foot and long-term maintenance consuming scarce resources. Despite this, campus space continues to grow, even as utilization declines, creating a disconnect that now threatens institutional sustainability.

Low space utilization weakens institutional strategy

Over the past 15 years, campus space has grown at a rate that outpaces enrollment, increasing net assignable square footage per student by 26% (and even as hybrid work, shifting academic needs, and changing student expectations reduce actual usage).

Academic offices remain vacant for large portions of the week, labs are rarely reallocated, and classrooms sit empty during off-peak hours. No matter the manifestation, underutilization has negative implications on the strategic priorities like, student success and sustainability, of the institution.

Related Report: The High Costs of Using Campus Space Inefficiently

Culture and misaligned incentives

Most leaders recognize the inefficiencies, but few institutions have succeeded in reversing the trend. Cultural resistance, misaligned incentives, and lack of shared ownership often stymie progress. Space is still viewed as a proxy for prestige and power, and units are reluctant to relinquish what they have, even when the business case is clear. Provosts seek room to grow programs, enrollment leaders want attractive environments, and presidents worry that shrinking footprints signal financial decline.

Optimizing campus space

EAB’s research shows that change is possible and increasingly necessary. Institutions that successfully optimize space adopt an approach that starts with foundational governance and data practices, then progresses to targeted interventions across high-cost space types, including:

• Downsizing underutilized space and improving service alignment
• Capping net new space growth and reallocating existing square footage
• Adjusting office, lab, and classroom space based on actual use
• Monetizing real estate assets and engaging donors in the full cost of ownership

This work requires coordination across the cabinet. Optimizing campus space is not only a financial imperative—it supports progress toward sustainability, research productivity, student success, and long-term institutional health.

The path forward

Space is no longer just a backdrop to the mission: it is a strategic lever that can either propel or impede progress. Leaders must act now to reframe how space is planned, managed, and used. This report offers strategies to optimize the built environment, supported by real-world examples.

Download the Full Report