News & Insights
Deferred capital renewal is catching up—here’s how colleges can get ahead
Aging infrastructure and tight budgets are pushing many colleges into a cycle of costly emergency repairs. Instead of reacting to problems as they arise, schools shifting to a strategic ownership model are achieving smarter capital renewal spending while lowering energy costs.

Across the country, college and university leaders are facing mounting pressure as aging infrastructure collides with limited budgets. Emergency repairs have become more frequent and more costly, often diverting resources away from long-term planning. The result is a cycle of reactive fixes that strain both finances and operations.
But there is a way forward. With the right engineering strategies, condition assessments, energy-efficient retrofits, and phased capital renewal planning—institutions can move from crisis response to proactive investment. This article explores how higher education leaders can take practical steps to regain control, stretch resources, and protect their campuses for the long term.
A challenge too big to ignore
According to Gordian’s latest report, higher education institutions across the U.S. are managing more than $112 billion in urgent deferred renewal. Many of the buildings at the heart of this backlog were constructed during the post-war education boom of the 1950s to 1970s. Now, they’re well beyond their expected service life, and the need for capital reinvestment is growing faster than budgets can keep pace. Estimates place the backlog at over $140 per gross square foot—and rising.
At the same time, colleges are being asked to do more with less. Leadership teams are under pressure to reduce operating expenses, decarbonize aging systems, and make visible progress on climate goals—all while delivering a safe, comfortable, and competitive environment for students and faculty.
The convergence of these demands has made deferred capital renewal not just a facilities issue, but a strategic priority. Institutions that take action now—backed by data and a clear roadmap—are better positioned to protect their physical assets, unlock long-term savings, and reinforce their mission.
The big win – moving to a strategic ownership model
For many institutions, the turning point comes when facilities are no longer treated as a collection of problems to solve—but as assets to manage strategically. That shift unlocks a fundamentally different approach: one where decisions are informed by data, long-term risk is reduced, and limited capital is deployed with maximum impact.
A strategic ownership model is built on visibility and prioritization. It starts with a clear understanding of the current state of each facility—its condition, performance, and lifecycle costs. From there, colleges can move beyond the scramble of emergency repairs and begin to plan phased capital renewal in a way that aligns with both operational goals and academic mission.
This model doesn’t require massive new spending—it requires smarter spending. By prioritizing upgrades that improve energy performance, extend system life, and reduce maintenance calls, institutions can reinvest savings into other critical needs. When coupled with tools like facility condition assessments, energy modeling, and capital planning software, the result is a coordinated, long-view strategy that puts colleges back in control of their built environment.
The shift isn’t just operational. It sends a message to stakeholders—students, faculty, funders, and trustees—that leadership is focused on stewardship and sustainability, not just survival.
Something needs to change, but where to start?
It’s a common refrain from college and university leaders: the need for action is clear, but the starting point is not. With aging systems across multiple buildings and limited funds to go around, it can feel impossible to prioritize. When everything seems urgent, decision-making stalls.
The first step isn’t a major capital investment—it’s gaining clarity. A facility condition assessment provides an objective view of campus assets, identifying which systems pose the greatest risk and where repairs or replacements will have the greatest impact. When paired with tools like energy audits—which evaluate how buildings use energy and where efficiencies can be gained—and commissioning studies—which verify that building systems are performing as intended—institutions can uncover opportunities to lower utility costs and reduce operational strain, often with quick, high-ROI upgrades.
From there, a phased renewal strategy can begin to take shape. Whether that involves bundling projects across similar systems, timing upgrades with academic calendars, or aligning with broader decarbonization goals, the path forward becomes more manageable—and more strategic.
It’s not about fixing everything at once. It’s about making informed, data-backed decisions that extend the life of facilities, reduce surprise failures, and create breathing room for longer-term planning.
What’s standing in the way—and what to do about it
Many college leaders know they need to act—but real obstacles get in the way. Here are some of the most common roadblocks, and the practical steps institutions can take to move forward:
Aging systems are held together by heroics
Facilities teams often keep buildings running through sheer creativity and deep institutional knowledge. But when those key people retire, the quick fixes go with them.
What to do: Start capturing that institutional knowledge through stakeholder interviews as part of a facility condition assessment. Use this input to create a more resilient, documented roadmap.
The most urgent problems are invisible—until they aren’t
System failures typically become visible only after they disrupt operations. That leads to reactive spending and lost opportunities for efficiency.
What to do: Use condition assessments and life cycle cost analysis to surface high-risk systems before they fail—and to prioritize upgrades based on cost, safety, and operational impact.
Too much data, not enough direction
With limited capital and endless reports, it’s easy to get stuck in analysis paralysis. Leaders want to make the right decision—but the weight of competing needs and uncertain trade-offs stalls progress.
What to do: Use a structured, engineering-led process to cut through the noise. Condition assessments and risk scoring help translate raw data into clear priorities, so decisions feel less overwhelming—and more actionable.
Short-term fixes seem cheaper—but cost more in the long run
It’s tempting to go with the quickest, lowest-cost option when budgets are tight. But those fixes often fail sooner and create future headaches.
What to do: Use life cycle analysis to compare long-term costs and payback periods. Even small investments in higher-efficiency systems can generate energy savings that fund future work.
Capital renewal isn’t seen as strategic—until it’s too late
Utility systems can account for hundreds of millions in long-term costs, yet they’re often overlooked in strategic planning.
What to do: Frame infrastructure investments as long-term asset management. When leaders understand they’re stewarding a billion-dollar system over 30 years, priorities shift.

How a zero-budget energy challenge sparked a campus-wide transformation and $75 million in savings
Before leading Salas O’Brien’s Raleigh, NC office, Chris Martin, Jr. launched an ambitious energy conservation program at the University of North Carolina—with no funding.
The goal: cut energy use by 15% in the first year.
He started small, focusing on Morrison Residence Hall at UNC Chapel Hill. The first step was measurement—understanding how energy was being used. From there, Chris and a team made up of facility maintenance staff and student volunteers implemented a mix of energy efficiency strategies, including optimized operations and maintenance and resident engagement.
The real breakthrough came through a North Carolina initiative (NCHB1292), which allowed the university to reinvest energy savings back into additional campus improvements. As each building improved, the results compounded: lower utility bills, reduced maintenance needs, and greater occupant comfort.
The impact? Over seven years, the program saved the university $75 million and became a nationally recognized model for campus energy conservation.
How Salas O’Brien can help
Salas O’Brien partners with colleges and universities to move from reactive maintenance to long-term, strategic planning. Our multidisciplinary teams bring deep experience in assessing, prioritizing, and renewing campus infrastructure—with a focus on maximizing value and minimizing disruption.
Here’s how we support higher education clients at every stage:
- Energy transition as a catalyst for renewal. We help campuses turn decarbonization goals into an opportunity to modernize infrastructure, reduce lifecycle costs, and tackle deferred maintenance. By aligning low-carbon technologies—like heat recovery, electrification, and thermal microgrids—with aging systems that need reinvestment, we enable clients to fund renewal while meeting sustainability mandates.
- Facility condition assessments that drive decisions. We go beyond checklists. Our engineers combine site visits, stakeholder interviews, and system-level expertise to deliver actionable insights—not just reports.
- Phased capital renewal strategies. Whether you need a 5-year roadmap or a 30-year reinvestment plan, we help prioritize upgrades by risk, cost, and mission impact—building momentum with projects that show early results.
- Energy audits and performance modeling. We identify efficiency gains that can lower operating costs and unlock funding for broader infrastructure renewal—often improving comfort and sustainability in the process.
- Lifecycle cost analysis and risk scoring. Our team helps you weigh short-term fixes against long-term investments, giving finance and facilities leaders the data they need to make confident, forward-looking decisions.
- Ongoing support to execute and adapt. From master planning to implementation, we stay with you—adjusting strategies as campus needs evolve and helping to communicate progress across stakeholders.
At every step, we align our work with your mission, your people, and your budget—so you can get ahead of infrastructure challenges and stay there. Reach out to one of our contributors below or contact us at [email protected].
For media inquiries on this article, reach out to [email protected].

Tom Iskra, PE, LEED AP
Tom Iskra has over 20 years of experience in project management, design and construction of innovative projects that maximize efficiency and minimize the impacts on the environment. Tom is actively involved with decarbonization efforts at Tufts University, Northeastern University and various public institutional campuses across the Northeast. Tom holds a Bachelor’s degree from the University of Connecticut and Master’s degrees from University of California, Berkeley and Harvard University’s Graduate School of Design. Tom serves as a Principal at Salas O’Brien. Contact him at [email protected]

Robert McKenna, MBA
Robert McKenna advises higher education and institutional clients on long-term energy strategy, infrastructure resilience, and cost-effective decarbonization. His recent work includes district energy transformation and carbon neutrality planning for major university systems. Robert serves as Director of Energy Planning at Salas O’Brien. Contact him at [email protected].

Chris Martin, Jr
Chris Martin has over 30 years’ experience in engineering consulting, project management, energy efficiency, and facility management. Chris led a energy conservation and capital renewal project for the University of North Carolina which produced $75 million in savings over 7 years. Nationally recognized in energy efficiency, Chris serves as a Principal at Salas O’Brien. Contact him at [email protected].