Construction Trends Relevant to San Diego

SAN DIEGO—The San Diego office-construction market is still extremely busy, and subcontractors have a healthy backlog through the first quarter of 2017, JLL VP Julie Kilpatrick tells GlobeSt.com.

A recent report from the firm indicates that we will see a robust construction pipeline thru Q1 2017 and that there is renewed interest in infrastructure projects in San Diego. Also, healthcare tenants are still asking for amenities when touring and considering relocation options.

We spoke with Kilpatrick about some of the regional trends she is noticing and how this might change with economic uncertainty.

GlobeSt.com: What regional construction trends are you noticing that relate to San Diego?

Kilpatrick: The San Diego office construction market is still extremely busy, and subcontractors have a healthy backlog through the first quarter of 2017. I anticipate this will remain consistent through 2017 and 2018 while both smaller and larger companies look to locate from major hubs like Los Angeles and San Francisco to San Diego's temperate climate, cheaper per-square-foot costs and available talent pools.

GlobeSt.com: How will the office-construction climate change with economic uncertainty and the pending movement in the real estate cycle?

Kilpatrick: I think we're going to see a change in focus on sectors within the next one to two years. I anticipate more spending on infrastructure and institutional projects, with office projects pulling back with available capital. Companies will focus on more value-driven initiatives with greater return on investment like prioritizing hiring, acquiring talent and investing in technology to capitalize on the changing demographic trend of more Millennials in the workforce.

GlobeSt.com: What types of amenities are healthcare tenants in particular asking for when seeking medical space?

Kilpatrick: Healthcare tenants are looking for elegant, warm and inviting common areas; comfortable seating for patients and families; floor plates that provide for efficiency; and designs that offer greater natural light.

GlobeSt.com: What else should our readers know about San Diego construction trends?

Kilpatrick: The San Diego office-construction market is very hot. Title 24 continues to drive rising construction costs. Additionally, technology firms are asking for cool, hip space to attract and retain talent, which continues to push the envelope when it comes to design and space amenities.

SAN DIEGO—The San Diego office-construction market is still extremely busy, and subcontractors have a healthy backlog through the first quarter of 2017, JLL VP Julie Kilpatrick tells GlobeSt.com.

A recent report from the firm indicates that we will see a robust construction pipeline thru Q1 2017 and that there is renewed interest in infrastructure projects in San Diego. Also, healthcare tenants are still asking for amenities when touring and considering relocation options.

We spoke with Kilpatrick about some of the regional trends she is noticing and how this might change with economic uncertainty.

GlobeSt.com: What regional construction trends are you noticing that relate to San Diego?

Kilpatrick: The San Diego office construction market is still extremely busy, and subcontractors have a healthy backlog through the first quarter of 2017. I anticipate this will remain consistent through 2017 and 2018 while both smaller and larger companies look to locate from major hubs like Los Angeles and San Francisco to San Diego's temperate climate, cheaper per-square-foot costs and available talent pools.

GlobeSt.com: How will the office-construction climate change with economic uncertainty and the pending movement in the real estate cycle?

Kilpatrick: I think we're going to see a change in focus on sectors within the next one to two years. I anticipate more spending on infrastructure and institutional projects, with office projects pulling back with available capital. Companies will focus on more value-driven initiatives with greater return on investment like prioritizing hiring, acquiring talent and investing in technology to capitalize on the changing demographic trend of more Millennials in the workforce.

GlobeSt.com: What types of amenities are healthcare tenants in particular asking for when seeking medical space?

Kilpatrick: Healthcare tenants are looking for elegant, warm and inviting common areas; comfortable seating for patients and families; floor plates that provide for efficiency; and designs that offer greater natural light.

GlobeSt.com: What else should our readers know about San Diego construction trends?

Kilpatrick: The San Diego office-construction market is very hot. Title 24 continues to drive rising construction costs. Additionally, technology firms are asking for cool, hip space to attract and retain talent, which continues to push the envelope when it comes to design and space amenities.