The affect that teacher perceptions of the learning environment have on pedagogic practice in the creation of effective learning spaces and learner engagement is significant. Data sourced from observations of teaching in different learning spaces indicate a diverse range of capabilities and understandings that academics possess about how learning spaces may be constructed in the university context. Qualitative evidence gathered using the Most Significant Change (MSC) methodology with data coding and thematic analysis constructs a model of how pedagogic practice is moderated by features of the physical environment in the creation of learning spaces. Exploratory surveys of participants in peer observations relate observed data to academics' experiences to create a detailed picture of motivators for moderation of teachers' pedagogic practices. Analysis reveals how in similar contexts the peer observation of teaching can provide insights into the construction of more potent learning spaces that better engage students with learning. The chapter concludes with the contribution of a model of space-moderated pedagogy in a Higher Education context that denotes the potential for productive and engaging pedagogic practices.