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College Construction Report 2015
College Construction Report 2015
COLLEGE
CONSTRUCTION
REPORT
NATIONAL STATISTICS,
BUILDING TRENDS &
MEDIAN COSTS
A SPECIAL SUPPLEMENT TO
Renewed Confidence,
Continued Growth
Research shows the most construction completed on college and university
campuses across the country since 2008 as the economy gains solid footing and
moves forward into recovery.
BY PAUL ABR AMSON
I
N 2014, colleges put more than $9.5 billion went towards entirely new to upgrade existing buildings even when
$12 billion worth of construction buildings, the most since 2007. expansion was not part of the plan.
in place, the most construction The downside of that, of course, is that To prepare this report, College Planning &
completed in a calendar year since less money was spent on existing build- Management received information on college
2008 (see Table 1). ings, but even on that score, the college and university construction completed and
This was not only a boom year in terms construction market looks strong. Colleges underway during 2014 and planned to start
of total construction; it was also a banner spent less than usual adding to existing or end in 2015 from Market Data Retrieval
year in terms of new buildings. Almost buildings, but increased their spending (MDR), a company of Dun and Bradstreet
PHOTOS (PROJECTS ON THE CAMPUSES OF ST. LOUIS UNIVERSITY AND SOUTHERN ILLINOIS UNIVERSITY, CARBONDALE)
Additons $1,039,178 14.3% $1,586,614 16.2% $1,732,084 15.7% $1,761,110 15.9% $2,151,836 15.7%
Retrofits $1,467,785 20.1% $2,147,947 22.0% $2,272,794 20.6% $1,843,611 16.7% $2,491,079 18.2%
TOTAL $7,287,861 $9,764,182 $11,055,411 $11,058,232 $13,667,744
Cost Total Cost Total Cost Total Cost Total Cost Total
New $7,913,650 73.5% $8,122,015 73.5% $7,133,195 73.3% $7,517,673 68.8% $9,480,929 78.8%
Additons $1,440,304 14.0% $1,545,743 14.0% $1,307,710 13.4% $1,995,546 18.3% $1,085,647 9.0%
Retrofits $1,703,390 12.5% $1,376,209 12.5% $1,293,629 13.3% $1,419,626 13.0% $1,469,918 12.2%
TOTAL $11,057,344 $11,043,967 $9,734,535 $10,932,846 $12,036,493
Charting construction costs: From 1995 to 2006, college construction spending in the United States rose from $6.1 billion annually to $15.1 billion, more than
doubling. But in the following three years, annual construction fell almost two-thirds to $10.7 billion in 2009. There was a slight rebound the next two years, but in
2012 college construction totaled just $9.7 billion, the first time it had dropped below $10 billion since 2001. In 2013, it once again rose to over $10 billion.
60%
40%
20%
0%
1995 1997 1999 2001 2003 2005 2007 2009 2011 2013
REGIONAL DEFINITIONS
Region 1 CT, ME, MA, NH, RI, VT Region 7 IL, MN, WI
Region 2 NJ, NY, PA Region 8 IA, KS, MO, NE
Region 3 DE, DC, MD, VA, WV Region 9 AR, LA, OK, TX
Region 4 KY, NC, SC, TN Region 10 CO, MT, ND, NM, SD, UT, WY
Region 5 AL, FL, GA, MS Region 11 AZ, CA, HI, NV
Region 6 IN, OH, MI Region 12 AK, ID, OR, WA
To read this table: Colleges in Region 1 (New England) spent $1.328 billion on new buildings completed in 2014, $44.5 million on additions to existing buildings
and $87 million on retrofit of existing buildings, for a total of $1.460 billion on all construction. About 91 percent of Region 1’s college construction dollars were spent
on new buildings. Region 1 colleges spent 12.1 percent of all the money spent on college construction last year.
through 2008. Then the recession hit, and universities in Region 11 (including comprised the fourth highest-spending
knocking total construction in 2009 down California, Arizona, Nevada and Hawaii) region with almost $1.5 billion spent,
to $10.7 billion. It stayed pretty close to spent the most, putting $1.78 billion in followed closely by colleges in Region 6 (In-
that total through 2013, bumping up to place. Better than four of five construction diana, Michigan and Ohio) which reported
$11 billion (2010 and 2011) and down to dollars were used to construct and open spending at $1.375 billion.
$9.7 billion (2012), but falling no further. new buildings. What was left was spent on
The $12 billion spent in 2014 is a major additions to ($154 million) and renovation What’s Underway?
increase. Quite possibly — with the na- of ($161 million) existing buildings. Region Construction completed in 2014 is
tion’s overall economy improving — it is 11 was responsible for almost 15 percent of history. Construction expected to be put in
the start of a trend. all college construction completed in 2014. place in 2015 is underway right now. Col-
Colleges in Region 2 (New Jersey, New leges report (see Table 3) that they expect
Construction Activity, York and Pennsylvania) put almost $1.7 bil- to complete slightly more than $10 billion
Nationally and by Region lion into place in 2014, with the bulk of that worth of construction this year. History,
College construction completed in 2014 going to new buildings. The region encom- however, shows that this is probably a
totaled just over $12 billion (see Table 2), passes several major urban areas — from low projection. Many college officials are
about $1.1 billion (10 percent) more than New York City to Philadelphia and Pitts- reluctant to provide construction cost data
was spent in 2013. Of that amount, $9.5 burgh — where construction costs tend to be ahead of time, so there were many reports
billion (78.8 percent) was spent on entirely high and sites tight and difficult to find. One of construction expected to be completed
new buildings. The balance went toward might think, on physically small campuses, in 2015 — or to start this year — that had
renovating existing space ($1.47 billion) that the focus would be on improving and no dollars associated with them.
and to providing added space in existing expanding existing buildings, but that obvi- While this could mean that the dollars
buildings ($1.09 billion). ously was not the case. are not available, it seems probable that
To better understand and estimate how Region 9 (Arkansas, Louisiana, Okla- a project about to be completed has been
and where construction is taking place the homa and Texas) was the third highest- funded. Apparently it is the willingness to
nation was divided into 12 regions (see list on spending region at $1.5 billion, a decrease report — not the dollars themselves — that
page 19) and construction plans and programs from the $1.76 billion spent in these states a is missing, but the result is that in looking
of each region’s colleges were examined. year earlier (when it was the nation’s highest at the data, one can see that more than is
Colleges and universities in five of those spending area). Three-quarters of the dol- shown is being spent, but how much more is
regions put more than $1 billion worth lars were spent on creating new buildings. difficult to know.
of construction in place in 2014. Colleges Region 1 (the six New England states) In terms of what has been reported so
far, Region 9 is the construction leader, Region 2 report that they are also con- Looking Ahead
projecting the completion of work totaling templating the completion of more than What is coming next? Colleges were
more than $2 billion in 2015, including $1 billion worth of new buildings in 2015, asked about construction projects they ex-
almost $1.8 billion in new buildings alone. as are colleges in Region 8 (Iowa, Kansas, pected to start in 2015. Table 4 totals those
Colleges in Region 11 ($1.2 billion) and Missouri and Nebraska). results. All of the same problems with
4 CONSTRUCTION
NATIONALLY AND BY REGION
PROJECTED TO START IN 2015 ($000s)
% OF SPENDING FOR % of
Region New Additions Renovation Total New Addition Renovation Nation
1 $369,000 $182,000 $71,500 $622,500 59.3% 29.2% 11.5% 5.9%
2 $751,864 $137,748 $35,904 $925,516 81.2% 14.9% 3.9% 8.7%
3 $478,300 $154,900 $95,400 $728,600 65.6% 21.3% 13.1% 6.9%
4 $470,274 $61,700 $127,700 $659,674 71.3% 9.4% 19.4% 6.2%
5 $462,122 $245,344 $129,453 $836,919 55.2% 29.3% 15.5% 7.9%
6 $596,000 $129,000 $177,085 $902,085 66.1% 14.3% 19.6% 8.5%
7 $649,619 $132,816 $107,324 $889,759 73.0% 14.9% 12.1% 8.4%
8 $284,856 $65,600 $139,000 $489,456 58.2% 13.4% 28.4% 4.6%
9 $852,252 $368,060 $821,290 $2,041,602 41.7% 18.0% 40.2% 19.3%
10 $426,033 $199,200 $54,500 $679,733 62.7% 29.3% 8.0% 6.4%
11 $1,155,360 $175,000 $70,400 $1,400,760 82.5% 12.5% 5.0% 13.2%
12 $214,000 $42,500 $154,500 $411,000 52.1% 10.3% 37.6% 3.9%
Nat’l $6,709,679 $1,893,868 $1,984,056 $10,587,603 63.4% 17.9% 18.7% 100.0%
To read this table: Colleges in Region 1 (New England) expect to start construction on new buildings costing $369 million in 2015, another $182 million on
additions to existing buildings and $71 million on retrofit of existing buildings, for a total of almost $623 million on all construction. About 59 percent of Region 1’s
projected construction dollars are destined to be spent on new buildings. The construction cost of Region 1 colleges projected to start in 2015 accounts for 5.9
percent of all college construction spending projected to start this year.
reporting pertain, but there is usually more have a different mix of classrooms, labs sons this year. In each case it is assumed
willingness to talk about what is going to and offices than one at another. Some col- that the function that was named is the
be started — it’s an opportunity to seek leges will put science labs in their academic dominant one in the building, although
support funding — and its budgeted cost, buildings; others construct buildings other facilities often are included.
than about completed work and the final strictly for science. Similarly, student cen- Information was available and gathered
expected costs. ters run the gamut from simple gathering on 79 new academic buildings completed
The indication is that colleges expect to and food service areas to theaters, bowling in 2014 or underway now. Among those,
start construction budgeted at more than alleys, fitness centers and the like. the median size was 55,820 square feet and
$10.5 billion this year. But these are starts, Nevertheless, when a college says that the median cost $20,250,000. In terms of
not completions; they are projections, not it is building a science building, an aca- cost per square foot, the academic building
certainties, and they will be completed over demic building, a library or performance right in the middle is being constructed
a number of years. arts building, there is a certain common- for $420.46 per square foot. (The median
ality of facilities that we all expect. That for each variable was found independently.
What Type of Building? commonality allows some comparison The 55,820 square foot median academic
Every college that plans and constructs from campus to campus in terms of cost building was not necessarily the one that
a new building designs that building for and size. Table 5 provides information cost $420.46 per square foot).
its own specific needs and purposes. An on 12 building types that were identified Also shown is the range of costs. One
academic building at one institution will relatively frequently by college spokesper- quarter of the academic buildings reported
7 ON
ACADEMIC BUILDINGS REPORTED
CAMPUS, BY HIGHEST LEVEL OF DEGREE OFFERED
Sample Number MEDIANS AMONG NEWSQ.
COST PER ACADEMIC
FT. BUILDINGS REPORTED
(Bldgs.) Size (Sq. Ft.) Cost ($000s) Cost per Sq. Ft.
Two-year (Associate's degree) 11 35,000 $13,125 $300.00
Four-year (Bachelor's degree) 4 20,000 $4,650 $232.50
Graduate (Master's & equivalent) 6 90,938 $32,492 $452.25
University (Doctoral & post-doc) 32 50,000 $21,625 $438.90
To read this table: Eleven “academic” buildings were identified on campuses of two-year colleges with a median size of 35,000 square feet. The median cost of
the 11 projects was $13.125 million. The cost per square foot for the median building was $300.00.
spending $250 per square foot or less while Buildings by College Purpose We have information on 18 buildings
at the other end of the spectrum, one- There is another way to look at college at colleges granting master’s degrees. The
quarter of the academic buildings were con- campuses and their construction projects. median building is 83,250 square feet and
structed for $538 per square foot or more. Do colleges offering different educational the median cost was $27 million. The me-
Looking at some of the other building degrees spend differently on the buildings dian cost per square foot was $343.77.
types identified, the median among 19 they are constructing? We have information on 39 buildings
health-related buildings was 91,150 square To get a handle on this we were able on university (doctoral) campuses. The
feet; the median cost $29.3 million and to examine construction at four different median building is 114,000 square feet and
the cost per square foot almost $385. It types of institutions, including universities the median cost $ 39,300,000. The median
should be noted that most of the buildings (doctoral granting); colleges granting mas- cost per square foot was $437.50.
designated as “health-related” were not ter’s and other post-graduate degrees but Since the mix of buildings varies, as
hospitals or research-oriented (they are not doctorates; four-year colleges, offering well as the sophistication (and there was
included among the 12 medical buildings), bachelor’s degrees; and two-year colleges no control in terms of location), Table 6
but instead included facilities specifically providing associate degrees, job preparation may be most useful for comparisons within
for training nurses, technicians, EMTs and and licensing. The institution itself provided colleges of similar types.
other health-related personnel and were the definition of the college and its mission. A sizeable number of academic build-
most often found at two-year colleges. Table 6 compiles the results. We have in- ings do exist on all campuses and, again,
The median cost among 12 buildings formation on 12 buildings on two-year cam- while comparisons are not exact, their
dedicated to medicine was $63.5 million for puses. The median building is 81,250 square functions are similar and it may be pos-
94,500 square feet. The median among them feet, and the median cost was $25,727,000 at sible to compare them. Table 7 isolates that
cost $578.64 per square foot, and one out of a median cost of $327.06 per square foot. building type and compares their sizes,
four cost $650 or more per square foot. We have information on just six buildings cost and cost per square foot.
The median cost per square foot among on four-year college campuses, and they are
45 science buildings was about $454. The close in size to those at the two-year colleges. What’s Being Renovated?
median science building was 100,000 The median building is 79,272 square feet With almost $1.5 billion spent in 2014
square feet and the median cost was and the median cost was $16,600,000. The on renovation of existing buildings, it
$59,500,000. median cost per square foot was $245. seemed useful to learn what kinds of