What CRE Can Learn from Higher Ed’s Approach to Building Management

Universities and colleges are sitting on a potential treasure trove of insights about how to most effectively manage the ebbs and flows of occupancy, energy demand, and facilities management. These insights can benefit commercial real estate, especially the workplace.

There are several factors that make universities an ideal learning model for improving workplace facilities. First, most universities have old infrastructures that have been incrementally modernized to meet the evolving needs of students, faculty, and staff. Second, occupancy and foot traffic can swing wildly depending on the time of day and year. Third, universities have mastered the art of balancing collaborative spaces with areas for focused work.

In many ways, universities have a head start on workplaces that are still trying to figure out the best office layouts for productivity, collaboration and energy efficiency. The latest JLL Global Office Fit-Out Cost Guide 2025 shows an increased focus on in-office attendance and employee experience lead the focus on investing in high quality workspace. Further, 60% of markets report increased demand for sustainable fit-outs. The report also finds the average global office fit-out cost is now higher, with regional costs ranging from $850 per square meter to $3,200 per square meter. 

Office Fit-Outs Demand Insight Before Action

Before CRE stakeholders invest more in the office, it may be worthwhile to gain a better understanding of how employees use the workplace. It is easy to make assumptions based on anecdotes and surveys. Yet when armed with data on how employees interact in the space, decisions about office layout, leasing, and energy efficiency become easier.

Universities understand the value of this information and realize it goes beyond occupancy data and foot traffic. Since academic buildings represent the original hybrid model, it is not surprising to learn they are already investing in newer technologies that go beyond counting people in a space. Instead, these AI-driven solutions provide insight into human interactions without compromising privacy.

The minute cameras or other forms of technology built to observe behavior are installed, the data becomes useless. For obvious reasons, workers don’t like it. Some will find a way to disable it. Others won’t come into the office regularly or stay the entire day. Many will behave in the way they think they are expected to be in the office. In all these instances, it is impossible to gain insight into actual behavior.

However, thermal sensing technology offers an alternative. By design, it is incapable of distinguishing individuals, therefore assuring privacy. Additionally, by capturing data on an aggregate level as opposed to the actions of individuals, you can spot trends and make decisions that benefit the majority of the workforce.

For example, data may show that a lot of interactions are happening in the hallway versus cubicles or offices. Based on this insight, the office may be rearranged to accommodate more casual conversations and brainstorms.

The added benefit is that employees won’t be upset by the sudden appearance of sensors in the building, if they notice them at all.

Universities Use People Sensing Data to Tackle the Power Grid

A rise in blackouts, demand for high performance computing and data centers, efforts to reduce their carbon footprints, and even tighter cybersecurity is leading more universities toward private, renewable power sources with less reliance on the external grid.

Arguably, the growing demand for greater control over power is one of the biggest drivers for universities wanting more insight into their buildings. It could be a matter of time before this is standard in CRE, most likely in workplace campuses.

Consider the rise in weather-related outages that are expected to increase in intensity and frequency. Additionally, increasing demand for higher performance computing and data centers to power research and labs, along with everyday computing needs of students, faculty and staff continue to strain the power grid. These factors are driving campuses to set up their own microgrids.

For example, UC San Diego’s microgrid powers 90% of campus needs. A similar initiative at Stanford is capable of islanding during outages while Princeton decarbonizes its microgrid with a thermal energy network.

Universities have become an exemplary model for building energy efficiency and sustainability. The challenges they face are consistent with the needs of commercial real estate for the workplace. And they consistently appear to be years ahead of the workplace. Of late, universities have expressed an increased focus on using AI to provide more accurate and insightful data into building usage.

For forward-looking CRE property managers and landlords, as well as employers and tenants, a lot can be learned about improving the workplace and building sustainability by observing how universities address similar issues today.