When trustees, presidents, and senior college administrators meet, one topic dominates the conversation: how to keep education quality high and costs down. To keep quality high, college leaders need to have strong faculties and state-of-the-art facilities for teaching and research. Quality counts but it also costs, and that is where the pressures come in: Institutions need to determine how best to balance investments in quality, such as modern facilities that will attract and retain students and faculty, and at the same time keep costs in check. Much has been written about the drivers of increased costs in higher education, especially the costs of faculty and administrative salaries (see the Delta Cost Project) and the demand for financial aid (see the College Board annual report on Trends in Student Aid). In this article, James Kadamus addresses facilities costs and how campus leaders can manage them more effectively. The second section of this article suggests strategies that all types of institutions will need to consider using when it comes to managing the cost of facilities in the future.