Financial pressures, shifting student demographics, an urgency for sustainability... the perfect storm to challenge the traditional higher education model. It’s not enough to focus solely on maintaining beautiful historic buildings, but design and construction teams are required to reimagine spaces to support ever-evolving learning and research needs.
Higher education institutions must strike a delicate balance: honouring legacies while transforming into flexible hubs that inspire collaboration and academic excellence. At the same time, the drive toward net-zero emissions is changing how universities approach estate management. With ambitious national sustainability initiatives and increasing scrutiny on environmental impact, the development of creative strategies to decarbonise campuses is essential in improving efficiency.
As funding constraints tighten, universities are also exploring new financial models and partnerships to ensure their estates remain both viable and competitive. An integrated approach that balances financial, environmental and functional considerations, allows spaces to transform into powerful assets that support their core missions, while future-proofing their institutions.
Challenges in managing university estates
Mounting financial pressures, with constrained funding, capped tuition fees and a decline in international student enrolments, are being felt across the sector, with many universities making difficult decisions to reduce costs.
Several UK universities are facing significant financial challenges, with many institutions reporting multi-million-pound deficits and implementing substantial cost-cutting measures, including staff reductions and operational savings. The financial challenges are further exacerbated by the need to maintain and modernise ageing infrastructure, particularly within Russell Group institutions, where historic buildings present unique maintenance and energy-efficiency issues.
I also highlight the growing sustainability targets that are driving institutions to take urgent action in decarbonising their estates. The UK’s commitment to achieving net-zero emissions has placed universities under increasing scrutiny to develop sustainable strategies that reduce their carbon footprints, while maintaining operational efficiency. As a result, the industry is exploring new ways to optimise campuses, considering how to use spaces efficiently to preserve legacies.
Unlocking value
To remain competitive, universities must adopt a strategic approach to estate management, focusing on rationalisation, decarbonisation and innovative funding models.
Rationalisation, consolidating underutilised spaces that create multipurpose facilities, caters to diverse needs. For example, Gleeds’ work with Magdalene College Library, at the University of Cambridge, utilised thoughtful planning for the integration of modern learning spaces within a heritage site. The project, which won the 2022 Stirling Prize for Architecture, highlights the importance of balancing architectural preservation with contemporary functionality.
Additionally, decarbonisation is a vital priority. Universities must embrace energy-efficient retrofitting, smart building technologies and net-zero operational standards to ensure long-term sustainability. The University of Nottingham has made significant strides in this area supported by Gleeds’ Digital Twin through its Carbon Management Plan, which sets a roadmap for achieving net-zero Scope 1 and 2 emissions by 2035. Securing over £3.6 million in funding for decarbonising student residential buildings, the university demonstrates how institutions can leverage external funding opportunities to drive eco-efforts.
Equally important is the need for funding models that allow universities to invest in development without bearing prohibitive upfront costs. Public-private partnerships (PPP) and Design, Build, Finance and Operate (DBFO) models are increasingly being adopted to facilitate expansion while minimising financial strain.
Collaborations with local schemes are also proving beneficial, unlocking land for research and housing projects that strengthen community ties. In certain circumstances, working with private landlords to provide leased serviced accommodation is another flexible strategy that enables universities to meet evolving student housing needs efficiently.
Leadership in action
As universities adapt to evolving educational and sustainability demands, the industry needs to lead by example. By integrating sustainable design, data-driven decision-making, adaptive reuse of historic buildings and decarbonisation strategies, we can collectively set new benchmarks for efficiency and resilience. To start, our ongoing work on the West Slope Residences project, currently under development, exemplifies the effectiveness of DBFO models, with its BREEAM Excellent certification reinforcing the critical role of sustainability in modern university design.
Gleeds has worked with 70% of Russell Group universities to support the management of university estates. For example, the University of Nottingham (UoN) exemplifies data-driven management through Gleeds’ DPMO, aligning investment planning and project governance with long-term goals. Overseeing a vast capital investment portfolio, UoN employs advanced data analysis to enhance efficiency and embed sustainability in estate planning, setting a benchmark for UK universities. As another example, the GlaxoSmithKline Carbon Neutral Laboratories for Sustainable Chemistry at the University of Nottingham exemplifies how universities can drive innovation while prioritising sustainability. Gleeds provided full project management and employer’s agent services for the construction of this state-of-the-art facility, not only achieving net-zero carbon in operation but earned BREEAM Outstanding accreditation. Despite challenges, including a major fire and evolving project scope, the project was successfully delivered, reinforcing the importance of resilience and sustainability in estate planning.
Social value is also becoming an increasingly vital focus for universities and their partners. A prime example is our collaboration with the University of Westminster, where we actively engage with students through career fairs, including the university’s LGBTQ+ career fair, where we have proudly hosted a stand for two consecutive years. As part of the Gleeds London HQ office relocation project at Berners Street, we welcomed 40 University of Westminster students for an immersive site tour, providing firsthand insights into office refurbishment from Overbury and Gleeds’ project and cost management leads. Initiatives like these are helping to address the construction recruitment gap and inspire young people to pursue a career helping shape the built environment of the future.
Looking ahead
Decarbonisation pilots offer insights into scalable models for sustainable transformation. By combining rationalisation, decarbonisation and new funding solutions, universities can future-proof estates, enhance learning environments and lead sustainability efforts in higher education. These initiatives also strengthen strategic estate management while enabling the construction industry to shape university estates and invest in future industry leaders, equipping them to drive progress in the built environment.
