By: Andrew Batson, Senior Research Analyst at JLL
Office construction is up 32% since last year, according to JLL’s new construction outlook. Of the 86.3 million square feet under production, tenant improvement (TI) – or the renovation of existing space – is trending.
In fact, there’s been a 14.2% increase in TI since the second quarter of 2013. Rather than building new properties from the ground up, landlords are looking to reinvent and fill vacant space.
Why? As construction, material and labor costs steadily increase, revitalizing existing space makes landlords more competitive and tenants more profitable.
For top takeaways from JLL’s new construction outlook report, download the report.