This study investigates the integration of Virtual Reality (VR) with participatory co-design methods to develop spatial innovations for sustainable and inclusive university campus environments. The research employed a multi-phase methodology: initially, 68 students from three Swedish university cities participated in workshops with architects to co-create spatial concepts focused on sustainability and inclusivity. These concepts were subsequently translated into interactive 3D virtual environments. In the second phase, these VR environments were evaluated by a diverse group of 42 stakeholders, including students, campus developers, educators, and architects. Data on user experience, including Quality of Experience (QoE) metrics such as immersion, interactivity, and comfort, along with perceptions of design relevance to sustainability and inclusivity, were collected through pre- and post-test surveys. Quantitative engagement patterns (time spent, interactions, navigation) and qualitative feedback (preferences, user-generated ideas, usability issues) were analyzed. Results indicated that VR effectively facilitated stakeholder engagement and understanding of the co-designed spaces. Distinct engagement patterns were observed across different stakeholder groups. Usability challenges, including navigation difficulties and isolated instances of cybersickness, were also identified. This study contributes empirical evidence on a hybrid VR co-design process, highlighting its potential to foster more democratic and user-centered campus planning while underscoring the importance of a mixed-methods approach to evaluation and iterative design.