The study delves into the obstacles Malaysian Higher Education Institutions (HEIs) encountered in efficiently overseeing educational spaces, particularly concerning the country’s adherence to the Sustainable Development Goals (SDGs). Given the substantial expenses linked to space allocation and the imperative for HEIs to uphold their primary educational and research functions effectively, optimizing space utilization is paramount. Many universities grapple with space limitations, resulting in underutilized areas that could otherwise enrich educational delivery. This research centers on implementing effective space management strategies within HEIs to cultivate optimal learning and teaching environments and diminish operational expenses. Through a qualitative study involving insights from academics and professionals, the suggested strategies pinpoint crucial factors—people, place, and process—essential for successful space management. The study delves into adaptation strategies to enhance space utilization in Malaysian HEIs and underscores the persistent barriers to practical implementation. By tackling these objectives, the study contributes to a broader comprehension of how facility management influences learning outcomes and student development within the framework of global sustainability goals.