During this webinar, Sightlines Vice President Jim Kadamus and Associate Vice President Jay Pearlman offer an in-depth discussion of the benchmarks, trends, and best practices introduced in our 2014 report The State of Facilities in Higher Education. Part 3 discusses the recent increased reliance on annual institutional capital by facilities leaders committed to slowing the rate of facility deferral and how overall spending has shifted since the recession. The growing deferred maintenance backlog is also discussed and we explore long-term capital execution strategies designed to define and draw down on that backlog.

1. Capital Investment

2. Annual institutional capital
$7.00
$6.00
$5.00
$4.00
$3.00
$2.00
$1.00
$0.00
Public Private
2007 2008 2009 2010 2011 2012 2013 2007 2008 2009 2010 2011 2012 2013
$/ GSF
Capital Investment into Existing Space
Public vs. Private
Annual Institutional Capital One-Time Capital Average

3. Annual institutional capital
$7.00
$6.00
$5.00
$4.00
$3.00
$2.00
$1.00
$0.00
Public Private
20% increase
52% increase
2007 2008 2009 2010 2011 2012 2013 2007 2008 2009 2010 2011 2012 2013
$/ GSF
Capital Investment into Existing Space
Public vs. Private
Annual Institutional Capital One-Time Capital Average

4. Facilities Backlogs Continue to Rise
National Average
$79 $81 $82 $85 $87 $90 $92
18%
16%
14%
12%
10%
8%
6%
4%
2%
0%
$100
$90
$80
$70
$60
$50
$40
$30
$20
$10
$-
2007 2008 2009 2010 2011 2012 2013
$/GSF
Backlog $/GSF
Backlog/GSF Percentage Change of Backlog

5. Facilities Backlogs Continue to Rise
Public vs. Private
Public Private
$83 $86 $88 $90 $93 $96 $99
$74 $74 $76 $78 $81 $82 $85
20%
18%
16%
14%
12%
10%
8%
6%
4%
2%
0%
$120
$100
$80
$60
$40
$20
$-
2007 2008 2009 2010 2011 2012 2013 2007 2008 2009 2010 2011 2012 2013
$/GSF
Backlog $/GSF
Public vs. Private
Backlog/GSF Percentage Change of Backlog

6. “Ask Sightlines”
Response

7. Understanding the Next 10 Years
$230
$250
$200
$150
$100
$50
$-
Total 10 Year Need
Total Dollars (Millions)
$100
$23
$107
$250
$200
$150
$100
$50
$0
Total 10 Year Need
Total Dollars (Millions)
Backlog &
Backlog Renewal Need
Remaining Backlog Need
(years 4 – 6)
Critical Deferred
Maintenance (years 1 – 3)
Renewal Need
(Lifecycle needs coming due
between 2014-2023)

8. An Execution Strategy for 10 Years
$230
$250
$200
$150
$100
$50
$-
Asset Reinvestment
Total Dollars (Millions)
$100
$23
$107
$250
$200
$150
$100
$50
$0
Total 10 Year Need
Total Dollars (Millions)
Backlog &
Renewal Need
Requires additional data above the current Discovery process
8
$30
$25
$20
$15
$10
$5
$0
Total Dollars (Millions)
10 Year Breakout of
Backlog Need

9. 10-Year Needs vs. Investment Capacity
$30
$25
$20
$15
$10
$5
$0
Total Dollars (Millions)
10 Year Total Capital Need by Year
$100
$23
$107 $120
$250
$200
$150
$100
$50
$0
Total 10 Year
Need
Projected
Investment
Capacity
Total Dollars (Millions)
10 Year Total Capital
Need & Capacity