Monthly Archives: September 2015

Construction Outlook Shows Tenant Improvement Boom [INFOGRAPHIC]

0 CommentsBy

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.

Office Construction

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.

2015 State of Construction Industry

For top takeaways from JLL’s new construction outlook report, download the report.

Read More

Commercial Real Estate News Brief: August 2015

0 CommentsBy

In the latest edition of our monthly news brief, JLL’s regional team curates the top industry articles to keep you in-the-know. In this month’s edition, JLL spotlights the latest technology trends in real estate, emerging biotech markets, and the booming intermodal industry in Columbus, Ohio.

Keep up with Spaces’ monthly recaps, and subscribe to JLL Spaces today.

The Tech Industry Drives CRE Revenue, Innovation

According to JLL’s CEO of Markets, John Gates, “Technological advances in the commercial real estate (CRE) sector have accelerated exponentially in the last few years impacting tenants, investors and brokers alike.” In his recent contribution to National Real Estate Investor (NREI), Gates outlined how the CRE industry has embraced technology in the following ways:

  1. Tech companies are growing and expanding. Tech companies made up 20.8% of U.S. leasing activity in the past year—and have left a major footprint on CRE market conditions. With declining office space in cities previously known to be tech hubs, new tech hotspots are surfacing across the country.
  1. CRE companies are adapting to technology. The industry itself is seeing an influx of new tools and platforms. According to Gates, “… even the most ‘old school’ real estate professionals are realizing how critical technology is to every phase of the real estate lifecycle.” CRE trends to watch include commercial drones, augmented and virtual reality programs, and experience-enhancing mobile applications for investors and tenants.

JLL is a leader in the commercial real estate tech space. In recent years, JLL has introduced new technologies to its tenant and investors including Blackbird, HiRise and Red.

Read More

4 Ways to Grow Your Business with Portfolio Optimization

0 CommentsBy

By: AJ Magner, Managing Director with JLL

Collaboration I’m sure you’ve heard. The commercial real estate industry is thriving. In fact, according to JLL, investment sales in the U.S. are on pace to reach an all-time high this year.

To keep your real estate healthy and profitable, portfolio optimization should still be top-of-mind … even in the strongest economic climates.

When you think portfolio optimization, do you think cost cutting or space reduction? Despite initial assumptions, there’s more to portfolio optimization than scaling back in times of trouble.

Rethink Real Estate: The Big Picture

Defined by JLL, portfolio optimization is “a comprehensive process that models real estate supply against real estate demand to drive efficiencies across a portfolio.”

It’s not just about cutting back. In many cases, portfolio optimization has been utilized to justify the need for more real estate.

Taking a step back: As one biggest line items on your business’ budget, it’s vital to approach real estate spend strategically—during the best (and worst) of times. Beyond basic rental and operating costs, your real estate portfolio plays a starring role in employee attraction, retention and overall productivity.

Looking at the holistic, long-term impact of your space, is it adequately meeting the needs of your business?

Read More