Todd Burns, PDS President at JLL, recently spoke with Building Design + Construction about the future of construction. 2015 was a banner year, so will 2016 be the same? Read on for his view:
Nonresidential construction activity should remain strong in the U.S. through 2016, although labor shortages and the rising cost of sheet glass will make projects more expensive, according to JLL’s latest Construction Outlook.
JLL sees the South as the country’s “new frontier” for construction, thanks to the region’s low labor and land costs. Conversely, the erosion in oil prices is cramping building in places like Houston whose economics rely heavily on their energy industries.
Sustainable office development pushed renovation activity to new heights in 2015. “This push for new build-outs was not limited to office spaces, with retail and industrial developers redeveloping existing space to include new technology and engage consumers in unique ways,” JLL’s 34-page report states, adding that this trend should continue this year.
The report sees positive signs in construction employment, which outpaced the country’s 4% growth rate. JLL also surveyed development firms that, in the main, agree that construction activity should be steady at least through the second half of 2016, and possibly well beyond that.
Read the entire store here.