{"id":1004721436,"date":"2024-07-16T08:35:24","date_gmt":"2024-07-16T16:35:24","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004721436"},"modified":"2024-07-24T04:39:52","modified_gmt":"2024-07-24T12:39:52","slug":"jll-revises-its-2024-construction-outlook","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/jll-revises-its-2024-construction-outlook\/","title":{"rendered":"JLL Revises Its 2024 Construction Outlook"},"content":{"rendered":"
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\"Construction<\/a>
JLL’s 2024 U.S. Midyear Construction Update and Reforecast reports price stabilization but also some areas of concern. Adobe Stock image courtesy of JLL<\/em><\/figcaption><\/figure><\/div>\n\n\n

Materials and labor costs have outpaced bid-price growth so far in 2024, according to an update to JLL\u2019s 2024 Construction Outlook, which was issued last year.<\/p>\n\n\n\n

\u201cThis has eroded some hard-fought gains from the past few years,\u201d Julie Hyson, Americas Portfolio Clients, Services & Industries lead, Project and Development Services, for JLL, told Commercial Property Executive<\/em>.<\/p>\n\n\n\n

\u201cGiven the stress on contractors, it’s encouraging how unwavering confidence in the market has been and how strong employment remains. Both are excellent forward-looking signals and position the industry well to hit the ground running as inflation cools, and potential interest rate reductions drive a burst of activity.\u201d<\/p>\n\n\n\n

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READ ALSO:<\/strong> Is the Rise in Construction Costs Decelerating?<\/a><\/p>\n\n\n\n

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Andrew Volz, research manager, Project and Development Services, for JLL, said it was surprising to see the aggregate growth in material price projections stay toward the low end of the initial forecast.<\/p>\n\n\n\n

\u201cWhile stabilization was expected due to the combined forces of constrained private starts and incoming public infrastructure projects, there is a substantial reassessment of market behavior and underlying supply risks still being addressed,\u201d Volz noted.<\/p>\n\n\n\n

\u201cFor example, demand remains exceptionally high for specific materials across overlapping industries, electrical goods especially remain a point of stress, and a shift toward more sustainable, design led, construction practices is accelerating. As a result, inflation may not feel as controlled at a project level compared to the headline numbers.\u201d<\/p>\n\n\n\n

Rubber meets the road<\/h2>\n\n\n\n

The 2024 U.S. Midyear Construction Update and Reforecast<\/a> reported how the year has unfolded compared to JLL\u2019s original predictions and <\/strong>forecasts.<\/p>\n\n\n\n

Cost indices haven’t remained stable since the beginning of the year, but underlying risks and changing patterns of demand make for a few noticeable points of opportunity. Confidence in the market over the next year, recovered margins and stable materials costs have allowed for total costs to stay on a “gentle upward trend,” according to the report.<\/p>\n\n\n\n

Further, with some loosening of capital despite high interest rates, starts are moving upward again in the private sector, JLL said. And construction hiring remains challenged. There are, however, signs of normalization, pointing to contractors working with conflicting strategic pressures as starts ramp up.<\/p>\n\n\n\n

Louis Molinini, Americas Market lead, Project and Development Services, for JLL, told CPE<\/em> that emerging geographic advantages and evolving economic dynamics are major influences on project locations and outcomes. Having predictability at the local market will be a major draw and may accelerate specialization and\/or fragmentation.<\/p>\n","protected":false},"excerpt":{"rendered":"

Confidence in the market over the next year has allowed for total costs to stay on a “gentle upward trend.”<\/p>\n","protected":false},"author":3568,"featured_media":1004721448,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21782,21808,21825,21742,51037],"tags":[32796],"class_list":["post-1004721436","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-development","category-featured","category-finance","category-latest","category-trends","tag-jll"],"acf":[],"yoast_head":"\nJLL Revises Its 2024 Construction Outlook - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/jll-revises-its-2024-construction-outlook\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"JLL Revises Its 2024 Construction Outlook\" \/>\n<meta property=\"og:description\" content=\"Confidence in the market over the next year has allowed for total costs to stay on a "gentle upward trend."\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/jll-revises-its-2024-construction-outlook\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2024-07-16T16:35:24+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-07-24T12:39:52+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/07\/JLL-Construction-Outlook-Revise.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"804\" \/>\n\t<meta property=\"og:image:height\" content=\"620\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Richard Berger\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/jll-revises-its-2024-construction-outlook\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/jll-revises-its-2024-construction-outlook\/\",\"name\":\"JLL Revises Its 2024 Construction Outlook - 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