We do not properly understand how the university's physical environment contributes to its academic work: there are assertions, but little firm evidence. This paper argues that university space influences the nature of the community and the culture that exist within it; that these phenomena transform space into "place"; and this is the place which affects academic outcomes. This process is theorized by proposing that physical capital is transformed into locational capital, and then into social capital, which can be used to productive effect. These ideas are tested by examining the design of a UK university of the 1960s, and reporting on the findings about its current use. (Contains 2 figures and 1 note.)