Roadmap for the Future of Construction, JLL Style

Jones Lang Lasalle recently released its 2013 Construction Outlook report that provides, in the big real estate services company’s view, a roadmap for the future.

Extreme Makeover: Jones Lang LaSalle Research Reveals a Four-Point ‘New Look’ for the Recovering Construction Sector,” the company states, “paints a picture of a recovering, more diversified industry with less risk and revived funding.”

The report takes a long look at the evolution since the 2008-2009 downturn.  Todd Burns, president of JLL’s Project & Development Services group says in the JLL press release that “commercial construction is now characterized by an absence of overbuilding, coupled with a diverse focus that is less dependent on residential housing. Growth in sectors such as healthcare, retail, distribution and lodging has shaped a more stable industry in the long-term.”   

The report cites indicia of improvement, including the Dodge Momentum Index, which charts projects in planning stages, rose 11.1% in the fourth quarter, from 2013s second quarter of 2013.

The JLL research paper presents “Four Characteristics of the Post-Crisis Construction Industry.” The “makeover factors” are:

  1. Financing is Back, which says that “commercial lending conditions are improving, even while lending standards have remained stagnant.”
  2. Construction has Become Expensive, noting that costs “are outpacing the recovery in most of the country.”
  3. All Buildings are Green Buildings--the Best are Both Green and Smart, where requests for green buildings have converted to demands, and “attention to green building materials is considered a core competency.”
  4. Sandy, Stimulus and PPPs Shape Revenue, which says, “Much-needed infrastructure updates and rebuilding in the wake of severe storms are driving construction recovery in many geographies, though “currently there are little funds available to states for new projects.”
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