COLLEGE CONSTRUCTION REPORT NATIONAL STATISTICS, BUILDING TRENDS & MEDIAN COSTS
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1 20TH ANNUAL COLLEGE CONSTRUCTION REPORT NATIONAL STATISTICS, BUILDING TRENDS & MEDIAN COSTS A SPECIAL SUPPLEMENT TO 00-00_COPM_205_02.indd 2/3/5 :29 PM
2 20TH ANNUAL COLLEGE CONSTRUCTION REPORT 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 ABRAMSON IN 20, colleges put more than $ billion worth of construction in place, the most construction completed in a calendar year since 2008 (see Table ). This was not only a boom year in terms of total construction; it was also a banner year in terms of new buildings. Almost $9.5 billion went towards entirely new buildings, the most since 200. The downside of that, of course, is that less money was spent on existing buildings, but even on that score, the college construction market looks strong. Colleges spent less than usual adding to existing buildings, but increased their spending to upgrade existing buildings even when expansion was not part of the plan. To prepare this report, College Planning & Management received information on college and university construction completed and underway during 20 and planned to start or end in 205 from Market Data Retrieval (MDR), a company of Dun and Bradstreet A LOOK BACK CONSTRUCTION COMPLETED ($000s), 995 THROUGH 20 New 995 $,3,92.% 99 $,528,92 2.% 99 $,20,99 3.8% 998 $,38, % 999 $,5,.2% Additons $50, % $5,9 8.% $529,03 9.2% $85,05 3.5% $98,8.5% Retrofits $,3,33 2.0% $,8,30 8.9% $98,993.% $,090,20.2% $,239,30 8.2% TOTAL $,03,5 $,25,99 $5,,95 $,332,50 $,93,33 New Additons Retrofits TOTAL New Additons Retrofits TOTAL New Additons Retrofits TOTAL 2000 $,80,898 $,039,8 $,,85 $,28, $9,92, $2,0,98 $2,2,89 $,523, $,93,50 $,0,30 $,03,390 $,05,3 5.%.3% 20.%.%.2% 8.3% 3.5%.0%.5% 200 $,029,2 $,58, $2,,9 $9,, $0,32,08 $2,09,83 $2,5, $5,052,50 20 $8,2,05 $,55,3 $,3,209 $,03,9.8%.2% 22.0% 8.%.0%.% 3.5%.0%.5% 2002 $,050,533 $,32,08 $2,22,9 $,055, 200 $0,8,25 $,, $2,539,088 $,500,0 20 $,33,95 $,30,0 $,293,29 $9,3, % 5.% 20.% 0.2%.2%.5% 3.3% 3.% 3.3% 2003 $,53,5 $,,0 $,83, $,058, $9,35,52 $,98,8 $,92,920 $3,299, $,5,3 $,995,5 $,9,2 $0,932,8.% 5.9%.% 0.3%.9%.8% 8.8% 8.3% 3.0% 200 $9,02,829 $2,5,83 $2,9,09 $3,, 2009 $8,08,32 $,25,902 $,30,2 $0,,9 20 $9,80,929 $,085, $,9,98 $,03,93 Charting construction costs: From 995 to 200, college construction spending in the United States rose from $. billion annually to $5. billion, more than doubling. But in the following three years, annual construction fell almost two-thirds to $0. billion in There was a slight rebound the next two years, but in 20 college construction totaled just $9. billion, the first time it had dropped below $0 billion since 200. In 203, it once again rose to over $0 billion..0% 5.% 8.2% 5.5%.%.8% 8.8% 9.0%.2% PHOTOS (PROJECTS ON THE CAMPUSES OF ST. LOUIS UNIVERSITY AND SOUTHERN ILLINOIS UNIVERSITY, CARBONDALE) COURTESY OF MCCARTHY BUILDING COMPANIES, INC. 8 COLLEGE PLANNING & MANAGEMENT / FEBRUARY 205 WEBCPM.COM
3 PERCENTAGE OF TOTAL DOLLARS COLLEGE CONSTRUCTION COMPLETED, 995 THROUGH 20 80% New Buildings Additions/Retrofits Combined 0% 0% 20% 0% (D&B). MDR contacts two-year and four-year colleges and universities, public and private throughout the United States seeking information on their construction plans new buildings, additions to existing buildings and major renovation, retrofit or modernization projects. (The three terms are used interchangeably throughout this report.) We take that project information and use it to estimate construction on a national and regional basis and to report on how dollars are being allocated to new buildings, including those dedicated to classrooms, to student services, to science, etc. All of the figures published are annual in nature. That is, they do not accumulate ongoing construction, but rather compile information on what was completed or expected to be completed or started in a given calendar year. Colleges are involved in more construction, but work started or completed outside the targeted years is not included. (Based on available data, at the present time colleges are involved in at least $35 billion worth of construction, an interesting measure of the impact of college construction on the nation s economy, but not the focus of this report.) This is College Planning & Management magazine s 20th annual report on college construction. In 995, when the study started, all colleges in the U.S. together were spending about $. billion annually on construction projects, two-thirds of it to put up new buildings ($. billion), some for additions to existing buildings (half a billion dollars) and another $.5 billion to fix up, modernize and retrofit existing buildings. Ten years later, total annual construction had more than doubled to $.5 billion (see Table ). Annual college construction rose to $5 billion in 200 and remained above $3 billion REGIONAL DEFINITIONS Region Region 2 Region 3 Region Region 5 Region CT, ME, MA, NH, RI, VT NJ, NY, PA DE, DC, MD, VA, WV KY, NC, SC, TN AL, FL, GA, MS IN, OH, MI Region Region 8 Region 9 Region 0 Region Region IL, MN, WI IA, KS, MO, NE AR, LA, OK, TX CO, MT, ND, NM, SD, UT, WY AZ, CA, HI, NV AK, ID, OR, WA FEBRUARY 205 / COLLEGE PLANNING & MANAGEMENT 9
4 2 NATIONALLY AND BY REGION COLLEGE CONSTRUCTION COMPLETED IN 20 ($000s) % OF SPENDING FOR Region New Additions Renovation New Addition Renovation Nat l $,32,893 $,,00 $,55 $3,05 $9,295 $,0,938 $335,539 $308,5 $,39,82 $23,00 $,, $0,900 $9,80,929 $,500 $29,989 $8,58 $3,85 $0,89 $0,99 $0,900 $,3 $20,823 $03,850 $5,3 $5,950 $,085, $8,30 $8,82 $22,3 $3,500 $50,0 $59,800 $2,5 $,000 $92,25 $,250 $,52 $2,950 $,9,98 $,59,03 $,85, $52,8 $98,20 $0,85 $,35,3 $38,0 $,99 $,50,2 $39,200 $,82,09 $83,800 $,03,93 9.0% 8.% 5.8%.9% 0.% 80.5%.5% 9.%.0% 0.9% 82.3% 9.% 8.8% 3.0%.8% 5.%.% 8.%.9% 9.3%.3% 3.5% 2.% 8.% 3.3% 9.0%.0% 0.% 29.5%.5% 2.3%.%.2% 3.%.5%.% 9.% 5.%.2% Nation.%.0%.3% 8.2% 5.9%.% 3.% 3.%.8% 3.2%.8%.0% 00.0% To read this table: Colleges in Region (New England) spent $.328 billion on new buildings completed in 20, $.5 million on additions to existing buildings and $8 million on retrofit of existing buildings, for a total of $.0 billion on all construction. About 9 percent of Region s college construction dollars were spent on new buildings. Region colleges spent. percent of all the money spent on college construction last year. through Then the recession hit, knocking total construction in 2009 down to $0. billion. It stayed pretty close to that total through 203, bumping up to $ billion (200 and 20) and down to $9. billion (20), but falling no further. The $ billion spent in 20 is a major increase. Quite possibly with the nation s overall economy improving it is the start of a trend. Construction Activity, Nationally and by Region College construction completed in 20 totaled just over $ billion (see Table 2), about $. billion (0 percent) more than was spent in 203. Of that amount, $9.5 billion (8.8 percent) was spent on entirely new buildings. The balance went toward renovating existing space ($. billion) and to providing added space in existing buildings ($.09 billion). To better understand and estimate how and where construction is taking place the nation was divided into regions (see list on page 9) and construction plans and programs of each region s colleges were examined. Colleges and universities in five of those regions put more than $ billion worth of construction in place in 20. Colleges and universities in Region (including California, Arizona, Nevada and Hawaii) spent the most, putting $.8 billion in place. Better than four of five construction dollars were used to construct and open new buildings. What was left was spent on additions to ($5 million) and renovation of ($ million) existing buildings. Region was responsible for almost 5 percent of all college construction completed in 20. Colleges in Region 2 (New Jersey, New York and Pennsylvania) put almost $. billion into place in 20, with the bulk of that going to new buildings. The region encompasses several major urban areas from New York City to Philadelphia and Pittsburgh where construction costs tend to be high and sites tight and difficult to find. One might think, on physically small campuses, that the focus would be on improving and expanding existing buildings, but that obviously was not the case. Region 9 (Arkansas, Louisiana, Oklahoma and Texas) was the third highestspending region at $.5 billion, a decrease from the $. billion spent in these states a year earlier (when it was the nation s highest spending area). Three-quarters of the dollars were spent on creating new buildings. Region (the six New England states) comprised the fourth highest-spending region with almost $.5 billion spent, followed closely by colleges in Region (Indiana, Michigan and Ohio) which reported spending at $.35 billion. What s Underway? Construction completed in 20 is history. Construction expected to be put in place in 205 is underway right now. Colleges report (see Table 3) that they expect to complete slightly more than $0 billion worth of construction this year. History, however, shows that this is probably a low projection. Many college officials are reluctant to provide construction cost data ahead of time, so there were many reports of construction expected to be completed in 205 or to start this year that had no dollars associated with them. While this could mean that the dollars are not available, it seems probable that a project about to be completed has been funded. Apparently it is the willingness to report not the dollars themselves that is missing, but the result is that in looking at the data, one can see that more than is shown is being spent, but how much more is difficult to know. In terms of what has been reported so 20 COLLEGE PLANNING & MANAGEMENT / FEBRUARY 205 WEBCPM.COM
5 NATIONALLY AND BY REGION 3 CONSTRUCTION PROJECTED TO BE COMPLETED IN 205 ($000s) % OF SPENDING FOR Region New Additions Renovation New Addition Renovation Nat l $2,529 $2,00 $5,290 $53,05 $5,953 $3,200 $83,92 $88, $,9,8 $200,95 $99, $92,800 $,,93 $39,500 $,000 $8,88 $8,35 $95, $9,50 $8,00 $,320 $3,0 $9,800 $3,03 $23,000 $,80,50 $50,23 $2, $3,3 $8,500 $03,20 $0,050 $2,550 $03,95 $00, $,00 $0,3 $23,000 $,208,39 $3,52 $,5, $98, $58,8 $,839 $95,900 $92,92 $,03,32 $2,00,90 $22,995 $,2,5 $38,800 $0,055, %.8% 3.8% 8.% 0.9% 5.9% 88.2% 9.8% 88.5%.5% 9.%.9%.2% 0.%.5%.9% 2.5% 25.% 0.0% 9.0% 0.5%.5% 22.%.8%.%.% 3.8% 23.% 9.3%.% 3.5%.% 2.8% 9.8% 5.0% 30.% 8.%.%.0% Nation 3.%.%.9%.5%.%.9% 9.% 0.% 20.0%.2%.%.% 00.0% To read this table: Colleges in Region (New England) expect to spend $28 million on new buildings to be completed in 205, $39.5 million on additions to existing buildings and $50. million on retrofit of existing buildings, for a total of $38 million on all construction. About 5 percent of Region s college construction dollars will go for new buildings. Region colleges are projected to spend 3. percent of all the money spent on college construction this year. It should be noted that this is an indication of reduced activity in the region and may reflect reporting flaws as much as slowed construction. far, Region 9 is the construction leader, projecting the completion of work totaling more than $2 billion in 205, including almost $.8 billion in new buildings alone. Colleges in Region ($.2 billion) and Region 2 report that they are also contemplating the completion of more than $ billion worth of new buildings in 205, as are colleges in Region 8 (Iowa, Kansas, Missouri and Nebraska). Looking Ahead What is coming next? Colleges were asked about construction projects they expected to start in 205. Table totals those results. All of the same problems with NATIONALLY AND BY REGION CONSTRUCTION PROJECTED TO START IN 205 ($000s) % OF SPENDING FOR Region New Additions Renovation New Addition Renovation Nat l $39,000 $5,8 $8,300 $0,2 $2,2 $59,000 $9,9 $28,85 $852,252 $2,033 $,55,30 $2,000 $,09,9 $82,000 $3,8 $5,900 $,00 $25,3 $9,000 $32,8 $5,00 $38,00 $99,200 $5,000 $2,500 $,893,88 $,500 $35,90 $95,00 $,00 $9,53 $,085 $0,32 $39,000 $82,290 $5,500 $0,00 $5,500 $,98,05 $22,500 $925,5 $28,00 $59, $83,99 $902,085 $889,59 $89,5 $2,0,02 $9,33 $,00,0 $,000 $0,58, % 8.2% 5.%.3% 55.2%.% 3.0% 58.2%.% 2.% 82.5% 52.% 3.% 29.2%.9% 2.3% 9.% 29.3%.3%.9% 3.% 8.0% 29.3%.5% 0.3%.9%.5% 3.9% 3.% 9.% 5.5% 9.%.% 28.% 0.2% 8.0% 5.0% 3.% 8.% Nation 5.9% 8.%.9%.2%.9% 8.5% 8.%.% 9.3%.% 3.2% 3.9% 00.0% To read this table: Colleges in Region (New England) expect to start construction on new buildings costing $39 million in 205, another $82 million on additions to existing buildings and $ million on retrofit of existing buildings, for a total of almost $23 million on all construction. About 59 percent of Region s projected construction dollars are destined to be spent on new buildings. The construction cost of Region colleges projected to start in 205 accounts for 5.9 percent of all college construction spending projected to start this year. FEBRUARY 205 / COLLEGE PLANNING & MANAGEMENT 2
6 5 PROFILE OF NEW BUILDINGS CURRENTLY UNDERWAY Building Type Median Size (Sq. Ft.) Median COST PER SQ. FT. Low Quartile Median High Quartile Buildings in Sample Academic 55,820 $20,250,000 $ $20. $ Health-Related 9,50 $29,259,999 $25.53 $38.8 $ Library 00,000 $8,000,000 $. $0.00 $505.2 Maintenance,500 $,2,000 $25.50 $23.09 $ Medical 9,500 $3,500,000 $5.5 $58. $50. Office 3,500 $,2,5 $23.99 $.55 $ Performing 50,90 $25,000,000 $388. $.8 $ Phys Ed/Athletic 80,350 $25,500,000 $.93 $22.03 $22.3 Residential 0,000 $3,200,000 $5.00 $230. $ Science 00,000 $59,500,000 $0. $53.85 $ Student Services 30,000 $5,592,000 $ $29.09 $ Technology 52,500 $2,000,000 $3.83 $38.9 $02.30 To read this table: The median academic building completed in 20 or to be completed in 205 will contain 55,820 square feet and will cost $20.25 million. The median cost is $20. per square foot. One quarter of the academic buildings will cost $250 per square foot or less: at the other end of the spectrum, one quarter will cost $538. per square foot or more. This information was gathered from 9 projects whose main purpose was identified as academic, essentially housing classrooms, offices and instructional labs. reporting pertain, but there is usually more willingness to talk about what is going to be started it s an opportunity to seek support funding and its budgeted cost, than about completed work and the final expected costs. The indication is that colleges expect to start construction budgeted at more than $0.5 billion this year. But these are starts, not completions; they are projections, not certainties, and they will be completed over a number of years. What Type of Building? Every college that plans and constructs a new building designs that building for its own specific needs and purposes. An academic building at one institution will have a different mix of classrooms, labs and offices than one at another. Some colleges will put science labs in their academic buildings; others construct buildings strictly for science. Similarly, student centers run the gamut from simple gathering and food service areas to theaters, bowling alleys, fitness centers and the like. Nevertheless, when a college says that it is building a science building, an academic building, a library or performance arts building, there is a certain commonality of facilities that we all expect. That commonality allows some comparison from campus to campus in terms of cost and size. Table 5 provides information on building types that were identified relatively frequently by college spokespersons this year. In each case it is assumed that the function that was named is the dominant one in the building, although other facilities often are included. Information was available and gathered on 9 new academic buildings completed in 20 or underway now. Among those, the median size was 55,820 square feet and the median cost $20,250,000. In terms of cost per square foot, the academic building right in the middle is being constructed for $20. per square foot. (The median for each variable was found independently. The 55,820 square foot median academic building was not necessarily the one that cost $20. per square foot). Also shown is the range of costs. One quarter of the academic buildings reported 22 COLLEGE PLANNING & MANAGEMENT / FEBRUARY 205 WEBCPM.COM
7 NEW BUILDINGS REPORTED ON CAMPUS, BY HIGHEST LEVEL OF DEGREE OFFERED Two-year (Associate's degree) Four-year (Bachelor's degree) Graduate (Master's & equivalent) University (Doctoral & post-doc) Sample Number (Bldgs.) 8 39 MEDIANS COST AMONG PER SQ. NEW FT. BUILDINGS REPORTED Size (Sq. Ft.) ($000s) per Sq. Ft. 8,250 $25,2 $32.0 9,22 $,00 $ ,250 $2,000 $33.,000 $39,300 $3.50 To read this table: Full information was available on buildings on the campuses of two-year institutions. Their median size was 8,250 square foot and the median cost was $25,2,000. per square foot was $32.0. ACADEMIC BUILDINGS REPORTED ON CAMPUS, BY HIGHEST LEVEL OF DEGREE OFFERED Two-year (Associate's degree) Four-year (Bachelor's degree) Graduate (Master's & equivalent) University (Doctoral & post-doc) Sample Number (Bldgs.) 32 MEDIANS AMONG COST PER NEW SQ. ACADEMIC FT. BUILDINGS REPORTED Size (Sq. Ft.) ($000s) per Sq. Ft. 35,000 $3,5 $ ,000 $,50 $ ,938 $32,92 $ ,000 $2,25 $38.90 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 projects was $3.5 million. The cost per square foot for the median building was $ spending $250 per square foot or less while at the other end of the spectrum, onequarter of the academic buildings were constructed for $538 per square foot or more. Looking at some of the other building types identified, the median among 9 health-related buildings was 9,50 square feet; the median cost $29.3 million and the cost per square foot almost $385. It should be noted that most of the buildings designated as health-related were not hospitals or research-oriented (they are included among the medical buildings), but instead included facilities specifically for training nurses, technicians, EMTs and other health-related personnel and were most often found at two-year colleges. The median cost among buildings dedicated to medicine was $3.5 million for 9,500 square feet. The median among them cost $58. per square foot, and one out of four cost $50 or more per square foot. The median cost per square foot among 5 science buildings was about $5. The median science building was 00,000 square feet and the median cost was $59,500,000. Buildings by College Purpose There is another way to look at college campuses and their construction projects. Do colleges offering different educational degrees spend differently on the buildings they are constructing? To get a handle on this we were able to examine construction at four different types of institutions, including universities (doctoral granting); colleges granting master s and other post-graduate degrees but not doctorates; four-year colleges, offering bachelor s degrees; and two-year colleges providing associate degrees, job preparation and licensing. The institution itself provided the definition of the college and its mission. Table compiles the results. We have information on buildings on two-year campuses. The median building is 8,250 square feet, and the median cost was $25,2,000 at a median cost of $32.0 per square foot. We have information on just six buildings on four-year college campuses, and they are close in size to those at the two-year colleges. The median building is 9,22 square feet and the median cost was $,00,000. The median cost per square foot was $25. We have information on 8 buildings at colleges granting master s degrees. The median building is 83,250 square feet and the median cost was $2 million. The median cost per square foot was $33.. We have information on 39 buildings on university (doctoral) campuses. The median building is,000 square feet and the median cost $ 39,300,000. The median cost per square foot was $3.50. Since the mix of buildings varies, as well as the sophistication (and there was no control in terms of location), Table may be most useful for comparisons within colleges of similar types. A sizeable number of academic buildings do exist on all campuses and, again, while comparisons are not exact, their functions are similar and it may be possible to compare them. Table isolates that building type and compares their sizes, cost and cost per square foot. What s Being Renovated? With almost $.5 billion spent in 20 on renovation of existing buildings, it seemed useful to learn what kinds of FEBRUARY 205 / COLLEGE PLANNING & MANAGEMENT 23
8 8 RETROFIT When Colleges Renovate a Building, Here Is the Work They Most Often Undertake* (% based on 02 projects) HVAC Electric Plumbing Flooring/carpet Fire Alarms Lighting ADA complicance Fiber Optics LANs WANs Security Controls Lavatories Tile Windows 50.0%.% 3.% 30.% 29.% 2.5% 2.5% 23.5% 2.% 20.% 8.%.% 3.% 3.%.% Roofing 0.8% * Retrofit undertaken in at least 0 percent of projects work are most often undertaken in these projects (see Table 8). When renovation projects are started on a college campus, overhauling the building s HVAC and electrical systems comes first. Plumbing and flooring are also frequently involved. Upgrading fire alarm systems is undertaken in more than one-quarter of the projects, as is complying with ADA requirements. Attention to connectivity is an obvious focus with 23.5 percent including fiber optics upgrades and about as many mentioning LANs and WANs as an important focus. 205 Campus Housing Report College Planning & Management will take a more comprehensive look specifically at residence halls in its annual report on student housing construction, scheduled to appear in the May 205 issue. If your college or university is constructing a residence hall now or has recently completed one, or your firm is designing or constructing a residence hall project that is planned, underway or recently completed, you can help in better understanding residence hall costs and features by providing information on what is being done, when, and identifying a person who can provide detailed information. Please contact me (Paul Abramson) at intelled@aol.com or CP&M Managing Editor Shannon O Connor (SOConnor@05media.com) to provide information on student housing projects. CPM This Construction Report and the accompanying tables, etc., were compiled by Paul Abramson, education industry consultant for College Planning & Management magazine and the president of Stanton Leggett & Associates, an education consulting firm based in Mamaroneck, NY. He can be reached at intelled@aol.com. DOWNLOAD THIS REPORT { KEEPING YOU UP-TO-DATE } The 20th Annual College Construction Report is available for download in PDF format from our website, 2 COLLEGE PLANNING & MANAGEMENT / FEBRUARY 205 WEBCPM.COM
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