Judging the Relevance and worth of ideas part 2.pptx
The State of Facilities at Pacific Coast Institutions May2016
1. Center
University of Missouri – Columbia
University of Missouri – Kansas City
University of Missouri – St. Louis
University of Nebraska at Kearney
University of Nebraska at Lincoln
University of Nebraska Medical Center
University of Nebraska Omaha
University of New Brunswick
University of New Hampshire
University of New Haven
University of New Mexico
University of North Texas
University of Northern Iowa
University of Notre Dame
University of Oregon
University of Ottawa
University of Pennsylvania
University of Redlands
University of Rhode Island
University of Rochester
University of San Diego
University of San Francisco
University of Southern Maine
University of Southern Mississippi
University of St. Thomas
University of Tennessee Health
Science Center
University of Tennessee, Knoxville
University of Texas at Dallas
University of the Sciences in
Philadelphia
University of Toledo
University of Vermont
University of Washington
Vanderbilt University
Virginia Commonwealth University
Virginia Department of General
Services
Wagner College
Wake Forest University
Washburn University
Washington University in St. Louis
Wellesley College
Wesleyan University
State of Facilities in Higher
Education: 2015 Benchmarks, Best
Practices, & Trends
Pacific Coast Institutions
2. % of Space Over 50 Years Old Continues to Rise
Age categories are an important indicator of long-term facilities risk and capital needs
2
Roughly 55% of space is over 25 years old, which is a critical age threshold that threatens the reliability of program delivery. While
some Pacific Coast institutions have been able to renovate their 25 to 50 year old space, others have had to watch their facilities age
without significant renovation and are now crossing over into the over 50 year old category, significantly compounding the challenge
of finding money to address the preponderance of needs coming due.
20%
26%
29%
26%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Pacific Coast
%ofSpace
2015 Age Profile
Under 10 10 to 25 25 to 50 Over 50
Buildings over 50
Life cycles of major building components are past due.
Failures are possible.
Highest risk
Buildings 25 to 50
Major envelope and mechanical life cycles come
due.
Higher Risk
Buildings 10 to 25
Short life-cycle needs; primarily space
renewal.
Medium Risk
Buildings Under 10
Little work. “Honeymoon” period.
Low Risk
High Risk
3. Small Buildings Intensify the Challenge
Building Intensity
3
In addition to older space, Pacific Coast institutions are dealing with smaller buildings on their campuses; especially when
compared to institutions in other regions (Central, Eastern, Midwest, Rocky Mountains, & Southern are combined all
averaging approx. 37 buildings/1,000,000 GSF). Smaller buildings equal more roofs, more systems, and considerably
more strain on operating staff to maintain.
0
10
20
30
40
50
60
70
Buildings/1,000,000GSF
Central Eastern Midwest Rocky Mountain Southern Pacific Coast
4. Capital Funding Still Struggling to Recover
4
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
2008 2009 2010 2011 2012 2013 2014 2015
Annual Capital One-Time Capital
With capital funding still struggling to recover from the 2010 recession, primarily due to the decline in the often
unpredictable one-time capital, Pacific Coast institutions have had to reexamine their funding strategies. Although total
spending remains below pre-recession levels, annual capital spending has been on the rise as campuses have begun
to look at institutional sources of funding more seriously in recent years. This funding type enables leaders to be
proactive about pending critical needs and flexibly apply appropriations to preserve physical assets. This becomes
increasingly important when institutions are unable to rely on large one-time infusions of capital to address major
needs.
$/GSF
5. 5
Sightlines’ Impact on Capital Spending
2011 new members’ capital spending before vs. after joining Sightlines
$0.72
$1.11
$3.29
$3.30
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
$4.50
$5.00
Before After
$/GSF
54% Increase
6. Mix of Capital Spending on the Right Track
6
62%
56% 54%
50%
43% 40% 41% 40%
30%
35%
33%
27%
27% 33%
42% 42%
8% 9% 12%
23%
29% 27%
17% 18%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 2009 2010 2011 2012 2013 2014 2015
Space Renewal & Safety Code Envelope & Building Systems Infrastructure
In addition to total spending and funding sources, project selection must also be taken into account to fully understand the
impact of historical investment patterns. To counteract the limited capital dollars available, Pacific Coast institutions have
recently made strong efforts to invest a greater portion of their capital into high priority project needs that affect building
reliability (envelope and mechanical systems) rather than space upgrades. Sightlines has found that space renewal
projects last about 12 years while envelope and buildings systems investment last 30 years or more. So, while
funding remains limited, the shift of that funding to more durable, high ROI investments is an important strategy.
7. Facilities Operating Budgets Slowly Rising
7
4.39 4.53
4.11 4.22 4.18 4.19 4.40 4.41
0.27 0.26
0.25 0.24 0.25 0.29
0.35 0.37
0.00
1.00
2.00
3.00
4.00
5.00
6.00
2008 2009 2010 2011 2012 2013 2014 2015
Daily Service Planned Maintenance
Facilities operating budgets are starting to grow at Pacific Coast institutions, but at very modest rates. When
compared to steady state adjusted levels, campuses are funding their facilities operations approx. 15% less than
the rate of inflation. This is forcing campuses to try to do more with less.
$/GSF
8. Facilities Asset Reinvestment Needs Continue to Grow
8
70
75
80
85
90
2008 2009 2010 2011 2012 2013 2014 2015
While funding shifts to more durable, high ROI investments have helped to mitigate some risk, overall funding
reductions have caused facilities backlogs to increase by almost 12% since 2008. Finance and Facilities leaders
at Pacific Coast institutions will need to look into implementing strategies that make the problem smaller and more
manageable, which will help build confidence among decision makers and lead to a greater commitment of capital
and operational resources for facilities.
$/GSF
9. 9
Changing the Conversation
Strategies for success
Understand
and
communicate
that not all
buildings are
created equal
Use
building
portfolios
Invest over
time
Reallocate
savings
Visit our website at Sightlines.com to download a
free copy of our 2015 State of Facilities in
Higher Education report for further insight into
the four strategies for success.
10. Sightlines Drives Results
10
The Most Accurate
Data = 360° View of
Finance and Facilities
Analysis - Insight,
Benchmarking and
Best Practices or
“Facilities
Intelligence”
Data-Driven
Decisions Leveraging
Disciplined Data
Analytics
Make-the-case for
Balanced Policies on
Space, Capital and
Operations
Continually Improve
the campus by
aligning with Mission &
Strategy