March 29, 2016
JLL’s U.S. Construction Outlook reports that construction activity is expected to grow this year, but at a slower rate than 2015 which was a banner year for post-recession construction activity.
- Office completions are near pre-recession numbers as projects started in 2014 come to market, with more expected to deliver in 2016.
- Primary tech markets, such as San Francisco and Silicon Valley, are experiencing some of the highest construction costs nationally.
- Declining energy prices began to negatively impact construction at the end of 2015. That was especially pronounced in markets such as Houston, while sublease space reached record highs.
- Renovation activity reached new highs in 2015, as companies created sustainable office developments geared to attract and retain a millennial workforce, as well as achieve corporate social responsibility initiatives.