Deferred Maintenance burdens plague nearly every college and university in the US. Moody’s suggests the problem is so large that colleges face up to $950 Billion in capital needs. These figures are set to continue to rise with inflation. Facilities Managers trying to dig themselves out need a strategic approach informed by occupancy analytics in combination with campus master planning to home in on the right projects and work towards improving spaces that will have the highest return on investment.
For campus planning teams at Purdue University and NSU Florida, investing in spaces that are already heavily trafficked and restacking underutilized spaces can create the flexibility necessary on campus to tackle major deferred maintenance projects effectively. Across Lambent Spaces customers understanding actual, unbiased utilization has led to divestments of space, facility sales, reductions in construction costs and other facilities strategies that can reduce deferred maintenance burdens. Let’s explore how occupancy analytics can help campus leaders tackle deferred maintenance.
What is Deferred Maintenance
Deferred maintenance is the practice of postponing necessary repairs and upkeep on a property to reduce the financial burden within that fiscal year. While this approach may be cost-effective in the short term, it can lead to significant long-term consequences, including decreased property value and increased vacancy rates. In some cases, buildings are mothballed which allows the company to defer maintenance, suspending usage of the property to reduce operational costs and wear on HVAC systems and other machines that require maintenance or replacement.
Leveraging Occupancy Analytics
Occupancy analytics offers a data-driven approach to understanding how spaces are utilized. This insight into patterns of occupancy across buildings, floors, and zones can inform major real estate decisions around investment and divestment strategies. Enterprise-level occupancy metrics can help space planners design more efficient spaces in a variety of regions and cultures, matching the needs of constituents without guess work.
Key Benefits of Occupancy Analytics
- Enhanced Space Utilization: Identify underused or overcrowded areas to optimize space allocation.
- Cost Reduction: Pinpoint opportunities to repurpose or downsize spaces, cutting unnecessary overhead.
- Improved Decision-Making: Use historical data to make informed choices about property investments and divestments.
- Find Swing Space or Flex Space: Identify spaces that can be used to support disruptions during construction,
Why Look at Occupancy Analytics on Buildings with High Deferred Maintenance Burdens
Occupancy analytics can reveal utilization trends that can significantly improve decision-making and prioritization projects when viewed in tandem deferred maintenance burdens, FCI scores, campus master planning, and other business objectives.
Historical trends around occupancy can surface actual utilization needs, allowing for a more strategic restacking or temporary housing of constituents. The ability to find swing space or surge space during construction or to lease only what is actually needed to put a building into construction has the power to reduce lease and operational costs.
To learn more about how Lambent Spaces, book a demo.
