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Thought Leaders: JLL Outpatient Fit Out Guide estimates 33% increase in outpatient medical renovation costs in last five years

JLL

Healthcare Capital Markets

Healthcare Perspectives

June 2022

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

Source: JLL Research

Key points:
• 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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