- Posted at 8:03, November 21, 2013
- By Russ Bleemer
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:
- Financing is Back, which says that “commercial lending conditions are improving, even while lending standards have remained stagnant.”
- Construction has Become Expensive, noting that costs “are outpacing the recovery in most of the country.”
- 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.”
- 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.”