What impact does geography have on your outpatient renovation costs?

outpatient renovation guide

This guide is a powerful tool we’ve created to help you understand the real cost of renovating an outpatient facility, covering every major city across the nation.

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The real deal

This cost guide was developed by a partnership of JLL’s Healthcare Project and Development Services (PDS) group, Research and Business Intelligence groups. It leverages granular data behind hundreds of JLL PDS managed healthcare projects and creates a data set that is actionable and proven.

A complete cost guide

What

This guide details what you can expect to pay to renovate an existing outpatient facility across the nation.

How

This guide leverages over 300 JLL project budgets to create actionable and accurate insights. 

Why

It is meant to provide clients with powerful understandings and data surrounding outpatient renovation projects. 

A deeper look

Executive summary

National average per square foot cost to renovate an outpatient facility

Hard costs
$159.15

Soft Costs
$15.94

Design and Fees 
$25.57

FF&E
$10 - $35

Tenant Factors
$18 - $45 

Contingency
$12.42
Top 5 highest cost markets to renovate an outpatient facility ($/ s.f.)

Key trends

Trends affecting the healthcare and outpatient industry
1. Focus on finances.
In anticipation of declining reimbursements, healthcare organizations are focused on improving their financial performance. Organizations are improving their bottom line in various ways, including mergers and acquisitions (M&A) that create scale and leverage risks, the monetization of existing assets and the renovation of existing facilities to extend their lifetime, among others.
2. Policy and potential impact.
Healthcare policy continues to be debated, and while potential changes are not known at this time, many organizations are orienting their operations to adapt to future possibilities.
3. Continued focus on ambulatory care.
The healthcare industry has been expanding its ambulatory network to provide healthcare to patients in a lower-cost facility setting. As a result, there’s been significant innovation and new construction in the outpatient, tele-medicine and at-home care fields.
4. The rise of ‘Wellness Communities.’
Commonly referred to as “Healthcare Villages,” these communities include a range of healthcare-related facilities which complement acute care services offered by a nearby hospital. These communities provide high quality services in a setting that ensures convenient access to specialty care and are primarily age-friendly with a socially vibrant urban design.

Contact form

Contact PDSBusinessDevelopmentResources@am.jll.com with questions on the data you see here or to talk to one of our Subject Matter Experts. 

©JLL 2017