[4] The institute building is situated at the Knab, a peninsula southeast of Lerwick and faces east overlooking the island of Bressay.

The style of the building is relative to a French chateau and it had a north and south wing including a house for the headmaster.

In 1902, a new central school (now Islesburgh Community Centre) opened and primary pupils moved to the building while the secondary pupils remained in the Anderson Education Institute, this increased the school roll and the headmaster's house was converted into classrooms and a playing field was added in the 1930s.

During World War II, the institute building was requisitioned as a military hospital and the pupils were taken to the central school.

Demolitions for the buildings were due to begin in early 2020 but were delayed because of the coronavirus pandemic and will start demolishing the 1960s and 1970s school blocks from December 2020 to January 2021, there have been discussions on providing new residential areas in the old school grounds with the original institute, two halls of residence which are listed buildings and the science block where they will likely be used for community use.