Healthcare Capital Markets
JLL provides outpatient buildout cost data to support the high growth of outpatient facilities and services
2022 national average per-square-foot cost to renovate an outpatient facility
• With the continued migration of healthcare services to outpatient settings, JLL research, in its newly-released 2022 Outpatient Fit Out Guide, estimates the average national cost to renovate existing medical buildings at $355 per square foot in 2022, inclusive of hard and soft costs of construction, clinical equipment and unique tenant requirements. This is a whopping 33 percent increase from $266 per square foot that JLL calculated in its 2017 fit out guide. The greater clinical intensity of outpatient space is contributing to the cost increase – a positive development – along with higher construction costs in general.
• The global pandemic gave an added jolt to the movement of outpatient care out of inpatient and hospital campus settings, a trend that’s been in process for more than 25 years as healthcare delivery has become more patient-centric and community-based. Between 2021 and 2031, outpatient volume is forecasted to increase by 20.7 percent while inpatient volumes are expected to only grow by 6.7 percent.
• With the advent of enhanced technology permitting more highly advanced services and surgeries in increasing numbers to be delivered on an outpatient basis, the relatively higher cost of outpatient build-out today continues to be dwarfed by the higher cost of new hospital facilities which sometimes exceeds $2.0 to $2.5 million per bed.
2022 Outpatient Fit Out Guide content includes:
• Major trends affecting outpatient care and facility design
• Detailed construction costs at national and regional levels
• Select local market opportunities and outlooks
To learn more about JLL’s 2022 Outpatient Fit Out Guide, click here:
JLL Outpatient Fit Out Guide
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