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"At any given moment, there's something that isn't working the way it should be," admitted Dr. Morgan Olsen, EVP and CFO at Arizona State University. With 1,219 buildings across four campuses and over 30 million square feet under management—not to mention facilities in DC, LA, Bermuda, and Hawaii—he wasn't being dramatic. He was being honest.
At the Higher Ed Facilities Forum, Olsen delivered a rare inside look at ASU that was equal parts practical and unfiltered. Instead of vague platitudes, he shared real strategies for growing fast, managing risk, and keeping your CFO on board—especially when funding is tight and expectations are high.
When State Funding Collapses, Innovation Rises
During the Great Recession, ASU's state appropriations were cut by 51% per student. Rather than scaling back, Olsen and his team rewired the entire business model.
Their tool of choice? “OPM"—Other People's Money.
By leveraging public-private partnerships, ASU delivered over $1.5 billion in campus facilities and $500 million in energy projects—all while keeping tuition increases for in-state students under 1.8% annually.
The result: while peer institutions pulled back, ASU continued to grow.
Big, Fast, and Still Building
ASU is one of the largest—and fastest-growing—universities in the country, serving over 150,000 learners through both campus immersion and online programs. That scale isn't just a brag; it’s a daily operational challenge.
Olsen shared that ASU typically has $1 billion or more in capital projects in planning, design, or construction at any given time. Balancing that kind of growth with ongoing reinvestment isn't easy.
“Do we have the balance right? Probably not,” he admitted. “We need to keep finding smarter ways to maintain what we have while building for what’s next.”
Sustainability as Strategy
When commercial developers told ASU it was unrealistic to require LEED certification in their mixed-use innovation zones, Olsen held firm.
“That was wrong,” he said, simply.
ASU now ranks #1 globally for institutional sustainability practices, with 69 LEED-certified buildings across its campuses and innovation zones. Environmental leadership, Olsen noted, isn't just a feel-good initiative—it's a financial strategy and a market differentiator.
Predictive Maintenance > Collateral Damage
"If something leaks on the second floor and runs for eight hours into a computer center... that's really expensive," Olsen said.
To combat the constant wear and tear on ASU's vast facilities portfolio, the university is integrating AI-driven fault detection and predictive diagnostics. These smart systems help identify problems before they cascade, shifting maintenance from reactive firefighting to proactive protection.
“It's expensive upfront,” Olsen admitted, “but if you build it into your design standards, it's a financial game-changer.”
Real Talk on Facilities Work
Olsen didn’t sugarcoat the day-to-day grind of managing a massive campus footprint.
“We’re basically in the utility business,” he said.
When everything’s running smoothly, no one notices. But the second something fails—HVAC goes out, a pipe bursts—that’s all anyone cares about.”
That pressure, he noted, makes it even more important to focus on smarter capital strategies, long-term planning, and strong internal partnerships—especially with your CFO.
The Success Trifecta
Asked what sets resilient institutions apart, Olsen kept it simple: “You need three things: the right people, sound processes, and effective technology. Miss one, and your institution is vulnerable.”
At ASU, that trifecta has fueled everything from smart real estate development to innovative lifelong learning communities—like Mirabella, a senior living facility on campus where residents mentor students and stay deeply engaged in academic life.
Bottom Line
ASU’s facilities strategy isn’t just about buildings. It’s about rethinking what a university can be—and finding ways to fund, operate, and maintain that vision even when resources are scarce.
For facilities and construction leaders navigating budget constraints and growing expectations, it was exactly what it needed to be: honest, smart, and immediately applicable.
🎥 Watch the full talk here:
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