Architecture & Construction Projects - FMLink https://www.fmlink.com/news-category/architecture-construction-projects/ Fri, 06 Jun 2025 18:21:57 +0000 en-US hourly 1 https://wordpress.org/?v=6.8.1 https://www.fmlink.com/content/uploads/2025/06/cropped-fmlink-favicon-32x32.png Architecture & Construction Projects - FMLink https://www.fmlink.com/news-category/architecture-construction-projects/ 32 32 Enjoy tax and energy savings with the right ceiling solutions https://www.fmlink.com/enjoy-tax-and-energy-savings-with-the-right-ceiling-solutions/ Tue, 27 May 2025 13:45:49 +0000 https://v4.fmlink.client.tagonline.com/?post_type=news&p=42814 Thanks to recent innovation pairing mineral fiber ceiling panels with phase change material technology (PCM), architects, designers, facility managers (FMs) and other key players in construction and renovation projects are...

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Thanks to recent innovation pairing mineral fiber ceiling panels with phase change material technology (PCM), architects, designers, facility managers (FMs) and other key players in construction and renovation projects are re-thinking the role ceilings play in supporting environmental objectives, especially energy savings. As a space warms — typically during the day when it is occupied or receives sunlight — the crystalized PCM encased in the ceiling gradually dissolves, passively cooling the space while it absorbs heat. As the room cools at night or during low-occupancy times, the stored heat is released into the space and the PCM re-solidifies. In this way, heat transfers naturally into and out of the ceiling panels at 72 degrees, allowing it to be effective for both cooling and heating.

Office setting, highlighting PCM ceiling panels
Armstrong Living Lab: PCM ceiling panels support thermal comfort with no mechanics, energy expenditure, or fossils fuels to burn. Image courtesy of AWI

Energy savings of up to 15%

Advantages of PCM ceiling panels stem from the fact that they support thermal comfort with no mechanics, energy expenditure, or fossils fuels to burn! A valuable, sustainable solution for a world prioritizing decarbonization, ceiling panels with PCM technology can reduce energy costs and consumption by as much as 15%.* By enabling energy savings, these ceilings offer advantages including:

  • Reduced reliance on fossil-fuel powered HVAC systems
  • Less wear on HVAC systems — critical to facilities with aging systems and strict budgets
  • Improved thermal comfort — especially well-suited for changing climates or environments with daily hot-cold fluctuations
  • Ability to enhance indoor environmental quality with features like acoustical sound blocking and absorption
  • Easy installation and little-to-no maintenance

Energy-saving ceiling products also fit into the thermal comfort portion of the WELL Building Standard and can contribute to energy and atmosphere credits for LEED.

Up to 50% in tax credits

While the above advantages can work to help a facility realize ongoing savings related to lower energy consumption and less reliance on mechanical heating and cooling — a project owner can get a “head start” on cost benefits because PCM ceiling panels qualify for certain tax credits. Projects utilizing energy-saving ceiling panels may qualify for Investment Tax Credit (ITC) 48E, which was introduced under the Inflation Reduction Act of 2022 and offers tax incentives for investments in clean energy technologies. Because of their thermal energy storage properties, most projects using PCM ceiling panels may qualify:

  • Up to 40% federal tax credit
  • Additional 10% tax credit if the project is deployed in an “Energy Community.” (i.e., a Brownfields site or fossil-fuel-dependent community)

When investing in energy-saving ceilings for a project, consider a solution that helps you maximize tax savings opportunities. For example, when installing an Armstrong Templok Energy Saving Ceiling, the ceiling panels, and associated grid, trim, and labor all qualify for tax credits under ITC 48E. Moreover, these panels are made in the U.S.A. of domestic and global content, meeting a requirement for additional tax savings.**

Qualifying energy saving ceiling projects include those of taxpayers and non-taxpaying entities and span multiple sectors, including:

  • Public — such as government entities
  • Private — corporations, healthcare facilities and others
  • Education — K-12 and higher education
  • 501 (c)(3) charitable organizations

The list of ideal projects is extensive and includes K-12 schools, public and private universities, dorms, museums, hospitals, nonprofit offices/facilities, military bases, courthouses, faith-based buildings, convention centers, and arenas — to name a few. In addition to getting information from the ceiling manufacturer, it’s important to consult your tax advisor to confirm qualification of your project.

More affordable, more sustainable

Thanks to tax credits, the use of energy-saving ceilings could make your next construction or renovation project more affordable. And, with PCM technology helping reduce energy costs, the impact on your bottom line won’t stop there. You can learn more about energy saving ceilings and related tax credits by visiting Armstrong Ceilings.

Notes:

  • *Cooling energy savings according to research estimates measured in lab tests. Results may vary.
  • ** This article lists various federal tax credits and deductions that your project may qualify for when purchasing Armstrong TEMPLOK Energy Saving Ceilings. Please consult your own tax attorney or advisor.
  • LEED is a registered trademark of the U.S. Green Building Council; WELL Building Standard is a trademark of the Well Building Institute.

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Evidence-Based Design Accreditation and Certification (EDAC) healthcare design study guides are now updated and interactive https://www.fmlink.com/evidence-based-design-accreditation-and-certification-edac-healthcare-design-study-guides-are-now-updated-and-interactive/ Fri, 09 May 2025 18:06:30 +0000 http://v4.fmlink.client.tagonline.com/evidence-based-design-accreditation-and-certification-edac-healthcare-design-study-guides-are-now-updated-and-interactive/ May 9, 2025 — The Evidence-Based Design Accreditation and Certification (EDAC) Study Guides published by The Center for Health Design are now available on the Facility Guidelines Institute (FGI) website....

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May 9, 2025 — The Evidence-Based Design Accreditation and Certification (EDAC) Study Guides published by The Center for Health Design are now available on the Facility Guidelines Institute (FGI) website. This collaboration promotes an interactive and user-friendly experience for professionals preparing for the EDAC certification exam.

Image courtesy of FGI

The Center for Health Design’s internationally recognized Evidence-Based Design Accreditation and Certification (EDAC) program awards a credential to individuals who demonstrate an understanding of how to apply an evidence-based process to the design and construction of all settings that contribute to health, safety and well-being, including measuring and reporting results.

Having the EDAC certification shows your clients and team members that you have a method for developing design solutions that are rooted in research to help achieve the desired goals and improved outcomes.

The updated digital study guides offer several new features, including:

➡ Highlighting and note-taking — Engage with the material in a more interactive way.

➡ Chapter-based navigation — Easily find content with a structured format replacing the previous single-running PDF.

➡ Improved accessibility — Zoom up to 400% while maintaining text clarity.

This integration allows design professionals to access essential industry resources in one place, helping them create safer, more effective healthcare environments.

Those purchasing Evidence-Based Design Accreditation and Certification (EDAC) Study Guides via The Center for Health Design website will now be redirected to FGI’s website for purchase and access. Existing users on MADCAD can continue their subscription until its term ends, after which they can transition to FGI’s digital subscription.

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Office-to-apartment conversions hit record high in 2025; even younger buildings are being repurposed https://www.fmlink.com/office-to-apartment-conversions-hit-record-high-in-2025-even-younger-buildings-are-being-repurposed/ Thu, 01 May 2025 19:40:31 +0000 http://v4.fmlink.client.tagonline.com/office-to-apartment-conversions-hit-record-high-in-2025-even-younger-buildings-are-being-repurposed/ May 3, 2025 — The office-to-apartment conversion niche is growing on all fronts: Not only has the number of apartments converted from office buildings more than tripled since 2022, but...

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May 3, 2025 — The office-to-apartment conversion niche is growing on all fronts: Not only has the number of apartments converted from office buildings more than tripled since 2022, but the conversion pipeline grew by 28% in one year alone (from 2024 to 2025). Plus, these conversions are increasingly targeting younger office buildings, finds a new report from RentCafé (part of Yardi Systems).

RentCafé’s annual report tracks the pipeline of apartments converted from former office spaces, which has now reached an astounding 70,700 units in the pipeline — more than triple the 23,100 units converted in 2022.

Check out the hotspots of conversion and the key trends:

  • The conversion pipeline has grown by 28% year-over-year in 2025, comprising 51,630 units carried over from the pipeline at the start of 2024 and 19,021 new conversions.  
  • New York has the biggest office-to-apartment conversions pipeline (8,310 units), followed by last year’s #1, Washington, D.C. (6,533 units); Los Angeles in third place (4,388 units); Chicago (3,606 units); and Dallas (2,752 units).  
  •  In 16 of the top 20 metros, more than half of all adaptive reuse projects involve office-to-apartment conversions. Four metros stand out with shares exceeding 70%: Phoenix (71%); Minneapolis (78%); Dallas (79%); and Omaha, NE (85% — marking the largest share nationwide). 
  •  There’s an increasing focus on repurposing modern buildings: Newer office buildings constructed between the 1990s and 2010s now represent 1.27% of the completed conversions. However, their share is expected to grow significantly, with their share set to rise to 7%
  •  Office conversions now represent 42% of all the 169,000 apartments emerging from future adaptive reuse projects — up from 38% in 2024. Nationwide, 14.8% of all office buildings are deemed suitable for conversion, according to CommercialEdge’s Conversion Feasibility Index.  
  • Office-to-apartment conversions have more than tripled, growing from 23,100 units in 2022 to 70,700 units in the pipeline in 2025. 
  • Modern buildings constructed between the 1990s and 2010s are becoming more common in conversion projects. While they accounted for just 1.27% of completed conversions, their share is projected to rise to 7%. 
  • According to CommercialEdge’s Conversion Feasibility Index, 14.8% of all office buildings in the U.S. are suitable for conversion. 

 

Additionally, here are some of the most notable conversion projects across the country, each set to bring hundreds of much-needed apartments to their respective cities:  

  1. In New York City, a standout project is the transformation of Pfizer’s former global headquarters at 219 E 42nd St., which is expected to create 536 rental units. 
  2. A key conversion in Washington, D.C., is the Universal Buildings project at 1825-1875 Connecticut Ave. NW. The property — totaling more than 1 million square feet — will be transformed into The Geneva, a residential complex containing 525 new apartments with at least 69 affordable units. 
  3. In Los Angeles, the 3rd biggest office conversion hub in the country, a significant project is the ARCO Tower redevelopment, which will transform the 33-story office building at 1055 Seventh St. into brand-new apartments. 
  4. One major project in Chicago is 30 N LaSalle St., where 432,000 square feet of space will be revamped into 432 new apartments, including 130 affordable units. 
  5. In Dallas, the Bryan Tower stands out as a key project to watch: Built in 1973 and purchased by Woods Capital in 2022, the 1.1-million-square-foot glass tower will be transformed into 425 new apartments. 

 

Read the annual report tracking office-to apartment conversions at RentCafé.

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How to clean and maintain architecturally finished aluminum — FGIA guide https://www.fmlink.com/clean-maintain-architecturally-finished-aluminum-fgia-guide/ Thu, 24 Apr 2025 21:53:15 +0000 http://v4.fmlink.client.tagonline.com/clean-maintain-architecturally-finished-aluminum-fgia-guide/ April 24, 2025 — The Fenestration and Glazing Industry Alliance (FGIA) has released an updated specification outlining methods, equipment and materials applicable for cleaning architecturally finished aluminum after construction and...

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April 24, 2025The Fenestration and Glazing Industry Alliance (FGIA) has released an updated specification outlining methods, equipment and materials applicable for cleaning architecturally finished aluminum after construction and for subsequent periodic maintenance. Last updated in 2015, AAMA 609 and 610-25, Cleaning and Maintenance Guide for Architecturally Finished Aluminum, is now available for purchase in the FGIA online store.

A man cleaning Architecturally Finished Aluminum on windows on a high rise building
Photo credit: Zoran Karapancev, Shutterstock, via FGIA

This information is intended as a guide for architects, owners, building managers, contractors and others in the building industry who are interested in the proper care and maintenance of finished architectural aluminum.

Carl Troiano (Trojan Powder Coating), vice chair of the FGIA Architectural Aluminum Handling, Cleaning and Maintenance Task Group, explained:

This guideline will benefit all those involved in the entire process from manufacturing and fabrication, installation and future maintenance of a project.  It is the most current specification to help deal with the cleaning and maintenance guidelines to assist in the prevention of damage to the finished aluminum surfaces. FGIA and its members have been able to provide a concise specification to assist in maintaining the longevity of anodized surfaces, painted and powder coated aluminum surfaces including cleaning recommendations and care after installation.

AAMA 609 and 610-25, Cleaning and Maintenance Guide for Architecturally Finished Aluminum, as well as other documents available from FGIA, may be purchased from the online store at the discounted member rate of $25 or the non-member price of $70.

For more information about FGIA and its activities, visit FGIAonline.

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Reinforced rooms at residence halls protect students from tornadoes, severe weather https://www.fmlink.com/reinforced-rooms-residence-halls-protect-students-tornadoes-severe-weather/ Wed, 23 Apr 2025 19:12:28 +0000 http://v4.fmlink.client.tagonline.com/reinforced-rooms-residence-halls-protect-students-tornadoes-severe-weather/ Provided by KWK Architects — In areas of the country where dangerous tornadoes and severe weather occur more frequently, more universities are incorporating reinforced rooms, or storm shelters, in their...

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Provided by KWK Architects In areas of the country where dangerous tornadoes and severe weather occur more frequently, more universities are incorporating reinforced rooms, or storm shelters, in their residence hall designs to provide an extra layer of protection for students.

Yellow and black Tornado Shelter sign
Image courtesy of KWK Architects

These tornado-safe rooms are typically small, above- or below-ground structures made of concrete, masonry or steel that are proven to withstand extreme winds, even those produced by EF-4 or EF-5 tornadoes.

The U.S. averages 1,333 tornadoes per year, with more than half of those occurring between April and June when most universities are still in session. The top five states with the highest number of tornadoes annually include Texas, Kansas, Florida, Oklahoma and Nebraska.

Javier Esteban, principal at St. Louis-based KWK Architects, suggests that universities collaborate with their architectural firms to determine a reinforced room design that best accommodates their budgets, structures and student population.

Esteban stated:

Ideally, reinforced rooms should be designed and constructed based on the standards and codes for tornado and hurricane storm shelters developed by the International Code Council (ICC) 500, in partnership with the National Storm Shelter Association (NSSA). But that is not always feasible for a variety of reasons.

Many times the restrictions in terms of ventilation, structure, and exit requirements make designing to these codes cost-prohibitive for universities. In those instances, it is still possible to design for student safety via a compromise where some public areas of the residence hall have strengthened or reinforced structures, doors and windows.

Plan for basement-level reinforced rooms at U. of Oklahoma
University of Oklahoma residential college storm shelter. Image courtesy of KWK

KWK Architects has designed reinforced rooms for several universities within the country’s “Tornado Alley” where twisters are more common:

  • Headington and Dunham Residential Colleges at the University of Oklahoma (Oklahoma averages 68 tornadoes per year).
  • University Commons residential complex at Missouri S&T (Missouri experiences an estimated 45 twisters annually).
  • Victor E. Village at Fort Hays State University in Kansas (Kansas reports an average of 96 tornadoes per year).

A reinforced room should be designed to stand up to high winds on its own, independent of the building structure surrounding it, said Esteban.

Esteban continued:

It is critically important to maintain the structure of the reinforced area so that should a building collapse occur, it does not affect the integrity of the reinforced space, and its occupants remain safe.

Plan for reinforced rooms at Missouri S&T
Structural reinforced rooms for storms in University Commons residential complex at Missouri S&T. Image courtesy of KWK

The Federal Alliance for Safe Homes (FLASH) has outlined the different types of tornado-safe room options available and the materials used to build them:

  1. Cast-in-place concrete — These rooms are assembled on-site using removable forms, rebar and concrete to create the walls and ceilings. The forms can be fitted with liners to create concrete exterior surfaces that look like siding, brick or stone.
  2. Insulating concrete forms (ICFs) — These rooms are created using foam blocks that contain steel reinforcement, fitted together and filled with concrete. The foam is a permanent part of the room and provides insulation to the building. Interior and exterior finish options include drywall, sheet rock or siding.
  3. Concrete masonry — These safe rooms are constructed of individual blocks, set in place with rebar and fully grouted. Two rows of steel at the top of the wall hold the assembly together. There are a variety of texture and finish options available.
  4. Precast concrete — This room is formed off-site and delivered to a building for installation. It can be located virtually anywhere in a new building and is anchored using steel angles and bolts. Precast concrete can be finished in a variety of colors and textures using form liners.
  5. Prefabricated above-ground steel — These prefabricated safe rooms typically cost less than site-built safe rooms. Considerations must be made to ensure that this room is placed on a safe and sturdy foundation.

Esteban also suggests that reinforced room designs incorporate emergency lighting, electrical outlets, fire extinguishers, first aid kits, heating and air-conditioning, and an AED defibrillator.

When not in use during emergencies, residence hall storm shelters can serve as lounges and study areas for students.

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IFMA and Autodesk launch initiative to help integrate building lifecycle management practices https://www.fmlink.com/ifma-autodesk-launch-initiative-help-industry-integrate-building-lifecycle-management-practices/ Fri, 11 Apr 2025 07:00:02 +0000 http://v4.fmlink.client.tagonline.com/ifma-autodesk-launch-initiative-help-industry-integrate-building-lifecycle-management-practices/ April 11, 2025 — The International Facility Management Association (IFMA) and Autodesk, a global provider of software for engineers, builders, designers and creators, recently launched the Building Lifecycle Management Initiative (BLMI),...

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April 11, 2025 — The International Facility Management Association (IFMA) and Autodesk, a global provider of software for engineers, builders, designers and creators, recently launched the Building Lifecycle Management Initiative (BLMI), a groundbreaking, technology-agnostic, standards-aligned endeavor that aspires to unify commercial real estate stakeholders – from owners and facility managers (FMs) to architecture, engineering and construction (AEC) professionals, technology providers and regulatory agencies — around a common approach to lifecycle management. With a global focus spanning North America, EMEA, Asia-Pacific and LATAM, the initiative is poised to drive transformation of the built environment on a worldwide scale.

BLMI logo 2025Co-founded by IFMA and Autodesk, BLMI envisions a future in which the built environment operates with intelligence, efficiency and interoperability at every lifecycle phase: design, construction, operations, renovation and deconstruction. By emphasizing industry-wide collaboration and the adoption of best practices and advanced technologies, the initiative establishes a cohesive, holistic approach to lifecycle management that will help industry stakeholders reduce costs and improve asset longevity while addressing decarbonization and regulatory challenges.

BLMI places a strong focus on stakeholder collaboration, data governance, interoperability and advanced technology integration, such as building information modeling (BIM), digital twins, predictive analytics, and artificial intelligence enabling smarter decision making, reducing inefficiencies and creating a connected data ecosystem. The objective is to deliver tangible value to every sector of commercial real estate, including:

  • Owners and investors: Extend asset lifespan, optimize operational costs and improve long-term financial performance.
  • Facility operations: Move from reactive maintenance to proactive lifecycle management, improving efficiency and tenant satisfaction.
  • Architecture, engineering and construction: Ensure design and construction integrate seamlessly with operational needs, reducing costly retrofits.
  • Technology and service providers: Align digital solutions with industry-wide standards for seamless adoption and interoperability.

The Initiative does not seek to create or replace industry standards; rather, it will foster a framework for aligning stakeholders around a common approach to lifecycle management. By leveraging global industry standards – like ISO 19650 (Building Information Modeling), ISO 8000 (Data Quality), ISO 41001 (Facility Management Systems), and OSCRE data models – the initiative ensures that buildings are managed with consistency, efficiency and long-term value in mind.

Robert Bray, vice president and general manager of Autodesk Tandem, stated:

Advanced technology solutions, such as digital twins, rely on quality data to deliver powerful insights and 3D visualizations to facility operators. The Building Lifecycle Management Initiative seeks to resolve systemic issues related to data quality that span the building lifecycle.

Dean Stanberry, CFM, SFP, past chair of IFMA’s Global Board of Directors, remarked: The commercial real estate industry has long struggled with inefficiencies due to fragmented data, disconnected systems and short-term decision making. BLMI represents a turning point, providing a structured approach for aligning stakeholders, eliminating waste and unlocking the full potential of the built environment.

To join this movement and shape the future of building lifecycle management, visit Building Lifecycle Management Initiative (BLMI). Register to stay informed, contribute to ongoing discussions, and explore how your organization can participate in advancing industry-wide best practices.

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Marberry: Reducing violence in the healthcare workplace: How design can help https://www.fmlink.com/marberry-reducing-violence-in-the-healthcare-workplace-how-design-can-help/ Fri, 04 Apr 2025 01:36:36 +0000 http://v4.fmlink.client.tagonline.com/marberry-reducing-violence-in-the-healthcare-workplace-how-design-can-help/ By Sara Marberry  — Did you know that 8 out of 10 nurses face violence in the healthcare workplace? Because of this, healthcare workers are more than four times more likely to...

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8 out 0f 10 nurses face violence in the healthcare workplace. Image courtesy of Marberry

By Sara Marberry  — Did you know that 8 out of 10 nurses face violence in the healthcare workplace?

Because of this, healthcare workers are more than four times more likely to be hurt by violence in their workplace — more than all other industries combined. And only 20-60% of violent incidents are actually accounted for.

It’s a shame that those who are dedicated to taking care of others face such behavior from patients. their family members, co-workers, and even angry members of the public. Violent behavior includes things like yelling, grabbing, biting, spitting and throwing stuff.

It’s a huge problem — partly because it’s an accepted part of the job.

What is being done about it?

Gun violence also occurs in the healthcare workplace. This past February, a gunman entered the intensive care unit of UPMC Memorial Hospital in York, PA, and took staff members hostage. A police officer died, and several others, including hospital staff, were injured.

Hospital administrators across the U.S. are implementing a variety of strategies to combat workplace violence and enhance safety for staff, patients and visitors, including:

  • Increased security presence
  • Metal detectors and screening
  • Access control and badging
  • Violence prevention programs and staff training/preparedness
  • Expanding mental and behavioral health resources
  • Improving workplace culture and support systems

Designing to reduce violence in the healthcare workplace

The design of the physical environment also plays a critical role in preventing violence against nurses. Thoughtful design can help decrease stress, improve visibility, limit access to weapons, and provide escape routes when necessary.

Here are eight key ways the design of the physical environment of healthcare can help reduce violence:

  1. Improved visibility and open sight lines that allow staff toe monitor patient behavior and recognize escalating situations before they become violent.
  2. Controlled access and secure entry points to prevent unauthorized individuals from entering restricted areas.
  3. Safe rooms and panic buttons to provide immediate protection for nurses if they need to remove themselves from a dangerous situation.
  4. De-escalation spaces and calming environments to help agitated patients regulate emotions, reducing outbursts.
  5. Ergonomic and safe nurse workstations to allow staff to quickly respond to potential threats.
  6. Weapon-resistant design and safe materials to prevent patients or visitors from using objects in the environment as weapons.
  7. Designated crisis response areas for handling patients with a history of aggression.
  8. Safety training so that staff members know how to use safety design features effectively.

Where do we go from here?

We live in an increasingly violent, angry society — driven by such things as increased stress and mental health issues, breakdown of community and family structures, exposure to violence in media and society, and political and social polarization.

That’s why the problem of violence in the healthcare workplace isn’t going away. But maybe with careful strategies paired with thoughtful design, it can be reduced. What do you think?

See the original article as well as more insights on Sara Marberry’s Blog.

This column originally ran on Sara Marberry’s Blog on March 21, 2025. Marberry is a healthcare design expert with over 25 years of experience in the healthcare and senior living design industry, who has written/edited five books and is a regular contributor to Healthcare Design magazine. Marberry also is a former Executive Vice President of the nonprofit Center for Health Design.

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JLL’s 2025 Medical Outpatient Building Perspective reveals trends reshaping healthcare real estate https://www.fmlink.com/jlls-2025-medical-outpatient-building-perspective-reveals-trends-reshaping-healthcare-real-estate/ Thu, 03 Apr 2025 17:56:01 +0000 http://v4.fmlink.client.tagonline.com/jlls-2025-medical-outpatient-building-perspective-reveals-trends-reshaping-healthcare-real-estate/ April 3, 2025 — An aging population, surge in outpatient demand, and the ever-present need for services near growing populations are all contributing to strong demand in the healthcare sector,...

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April 3, 2025 — An aging population, surge in outpatient demand, and the ever-present need for services near growing populations are all contributing to strong demand in the healthcare sector, according to a new report from global real estate and professional services firm JLL. According to Advisory Board, outpatient volumes in the U.S. are expected to grow 10.6% over the next five years. JLL’s new 2025 Medical Outpatient Building (MOB) Perspective reveals the key trends shaping the healthcare real estate landscape, including the accelerating move toward outpatient care, rising occupancy, limited construction for purpose-built MOBs, steady rent growth, demographics driving expansion in Sunbelt markets and medical buildings offering continued stability for investors and health systems.

Circle graph illustrating 2025 Medical Outpatient Building Perspective
Health systems accounted for almost half of medical office leases signed in 2024. Source: JLL Research, Medical office leases >10,000 sf, courtesy of JLL

Cheryl Carron, COO, Work Dynamics Americas, and president, Healthcare Division, JLL, pointed out:

These findings reflect the ongoing transformation of the healthcare real estate landscape, driven by factors such as changing patient preferences, technological advancements and demographic shifts. Health systems are taking a more active role in shaping their real estate portfolios and, along with corporate medical groups, are at the forefront of change, implementing ambitious ambulatory care strategies to improve patient outcomes and optimize their revenue streams.

Health systems and corporate medical groups lead the outpatient shift

An aging population and increasing disease prevalence continues to drive the overall need for care. The site of care shift from inpatient to outpatient will continue as technology and patient preference is driving advances in medical care, making treatments less expensive, safer and less invasive.

Health systems are leaning into this and are expanding their real estate footprint and either acquiring or contracting with physician groups to add specialties. From 2022 to 2023, 16,000 additional physicians became employees of a hospital system, and health systems accounted for 46% of MOB leases that JLL tracked in 2024. Specialty providers comprised 31% of the MOB leases, with psychiatrists and behavioral health providers making up the largest group of these, accounting for 18% of this square footage.

Matt Coursen, executive managing director, market leader, Mid-Atlantic Healthcare Group, JLL, remarked:

We’re seeing a clear trend of hospitals and health systems focusing on high-value services such as orthopedic and cardiovascular care. These healthcare providers prioritize access, convenience and visibility for their outpatient locations, in some cases mirroring retail tactics to capture market share either via acquisition or de novo growth. Their site selection process is intricate, involving analysis of patient data, community demographics, care gaps, population growth, insurance coverage, referral networks and competitor proximity. Hence, why it is more important than ever to have a data-driven ambulatory network strategy that aligns with the real estate portfolio.

Healthcare tenants may seek alternative spaces due to limited medical office availability

Strong demand and limited construction have driven occupancy steadily upward, with absorption for medical outpatient buildings topping 19 million square feet for the top 100 markets in Q4 2024, an increase of 15% from full-year 2023, according to Revista. MOB occupancy increased to 92.8% in Q4 2024, up from 92.4% one year prior; however, medical outpatient building construction remains subdued due to elevated costs, developers’ need for higher returns and tenants’ desire to control expenses.

Health systems led construction starts in 2024, accounting for 53% of total square footage and a significant increase from just 43% in 2019. Healthcare providers, especially those offering low- to mid-acuity services, are increasingly exploring office and retail spaces near patients or hospitals due to limited MOB availability, despite conversion challenges for high-acuity services or resource-intensive services like imaging.

Dan Squiers, executive vice president and Healthcare lead, Project and Development Services, JLL, stated:

With medical outpatient building occupancy reaching new heights and construction starts lower than in previous years, healthcare tenants may increasingly consider office and retail spaces for their expansion needs. This trend is reshaping not just the healthcare real estate sector, but also impacting traditional commercial real estate markets and reflects the strategic importance of real estate in delivering cutting-edge healthcare services and optimizing patient outcomes.

Medical outpatient rents are rising, boosting property income

MOB rents continue to rise, albeit at a slower pace from 2023 to 2024. Top-tier properties have experienced faster growth, with rents in the 90th percentile of Revista’s Top 100 markets growing at a 2.3% CAGR from 2019 to 2024, compared to 1.8% for median rates. The low availability rate of 6.9% in Q4 2024 means advertised rates don’t tell the full story, as many tenants renew in place and some spaces are not publicly listed.

Healthcare REITs are benefiting from steady NOI growth, with new lease escalations averaging 3% in 2024 and average terms of 107 months; however, tenants face challenges as rate escalations outpace year-over-year rent growth in most markets. With slim operating margins and declining reimbursements, healthcare providers are keen on cost reductions across the system, which may limit dramatic rent increases in the future.

Kari Beets, senior manager, Healthcare Research, added:

While medical outpatient building rents are expected to continue their upward trajectory, we anticipate steady rather than steep growth. The healthcare sector’s financial constraints, including tight operating margins and reimbursement pressures, will likely moderate rent increases compared to premium office submarkets experiencing a flight to quality.

Sunbelt population growth and established healthcare brands fuel market expansion

While Sunbelt markets are seeing significant growth due to population shifts, the report details strong performance in markets like Boston and Northern New Jersey that benefit from the presence of established, growing health systems with strong brand recognition, which can support growth through fundraising and attract high-value specialties.

Markets with strong rents and occupancy are spread throughout the country, with four Sunbelt markets seeing rent growth over 3% – Miami, Orlando, Austin and Tampa. New York led all markets with new outpatient services move-ins in 2024 for both leased and owned space. Although Philadelphia led all markets in 2024 MOB net absorption, with Houston and Atlanta posting more than 400,000 square feet of net absorption each, the Norfolk/Hampton Roads, Virginia, area saw strong absorption compared to total inventory.

Medical properties attract investors and health systems with stable returns

Medical buildings continue to offer stability for investors, and health systems also see benefits to ownership. Medical outpatient transaction volume increased in 2024, bolstered by significant acquisitions in the sector.

The report also provides insights on the future perspective of the MOB market, including potential challenges and opportunities for developers, health systems, tenants and investors. Key considerations include the impact of changing healthcare delivery models, challenges posted by limited supply pipeline and the role of technology in shaping future healthcare real estate needs.

John Chun, senior managing director and Medical Properties group leader, Capital Markets, JLL.

The stability and growth potential of medical outpatient buildings continue to attract investors. With average lease escalations of 3% and terms for new leases averaging almost nine years, MOBs offer a compelling investment opportunity in today’s market.

Future perspective

Healthcare demand remains robust due to an aging population and increased outpatient needs; however, potential challenges may impact demand for medical outpatient spaces and shake up the healthcare sector.

Carron concluded:

Looking ahead, we anticipate continued evolution in the healthcare real estate sector. Factors such as the shift to home-based care, telehealth advancements, changing healthcare policies and demographics will all play a crucial role in shaping the design and demand for medical outpatient space. Stakeholders across the industry will need to remain agile and forward-thinking to capitalize on these emerging trends.

View the complete 2025 Medical Outpatient Building (MOB) Perspective at JLL.

JLL Healthcare provides a full range of real estate and facilities solutions for hospitals, physicians and other care providers as well as real estate investors that own and operate medical and seniors housing properties. The company helps its healthcare clients plan, find, finance, buy, lease, sell, construct, optimize, manage and maintain the most-advantageous facilities anywhere in the U.S. for all property types along the continuum of care, serving over 550 million square feet of healthcare property annually.

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Marberry: AI in healthcare facility planning and design: What you should know https://www.fmlink.com/marberry-ai-in-healthcare-facility-planning-design-what-you-should-know/ Thu, 06 Mar 2025 20:23:08 +0000 http://v4.fmlink.client.tagonline.com/marberry-ai-in-healthcare-facility-planning-design-what-you-should-know/ By Sara Marberry  — I’ve been having a lot of conversations with people about AI recently. Love it or hate it, AI is here to stay and will only grow in importance...

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Courtesy of Sara Marberry’s Blog

By Sara Marberry  — I’ve been having a lot of conversations with people about AI recently. Love it or hate it, AI is here to stay and will only grow in importance in our daily lives.

AI isn’t perfect.

It sometimes messes things up. Its ability to generate highly realistic deepfake videos and images is very disturbing. And some think AI could surpass human intelligence and take over the world.

But AI isn’t inherently good or evil — it’s all about how we use it.

AI in healthcare

In healthcare, AI is already impacting patient care, staff productivity, and facility design.

AI-powered imaging tools can detect anomalies like cancer, fractures, or infections faster and with higher accuracy than traditional methods. It also scrutinizes patient data, genetics, and past medical history to tailor treatments specific to individual needs.

And there’s more.

AI models can analyze trends and identify individuals at risk of diseases like heart disease or diabetes before symptoms appear, enabling early interventions. AI-powered virtual assistants and chatbots are able to provide 24/7 patient support, answer medical queries, schedule appointments, and even help monitor chronic conditions remotely.

By reducing administrative burdens and optimizing workflows, AI is also reducing time spent on things like paperwork and data entry, allowing staff to focus more on patient care.

AI in healthcare facility planning and design

recent paper published by the American College of Healthcare Architects offers a great overview of AI in healthcare facility planning and design, with 10 conclusions and predictions at the end. Some that stood out for me are:

  1. Data-driven design: AI’s ability to collect data in a number of different areas. such as outpatient care and customer preferences, will inform new and flexible facility design solutions.
  2. Efficiency and workflow optimization: By streamlining administrative tasks, AI will free up time for healthcare professionals and eliminate the need for some staff. This will impact the types and amount of workspaces that are needed.
  3. Population data mining for everyone: AI’s ability to analyze and predict diseases and new treatment options will present new design challenges

On the creative side, AI allows healthcare architects and designers to run different scenarios for their designs by generating multiple solutions based on specific things like space utilization, sustainability, and aesthetics. It’s also being used to design more energy-efficient buildings by simulating how they will interact with natural elements such as sunlight, wind, and temperature.

AI-powered virtual staging tools can give clients an idea of what a space might look like with out physical staging. And AI can be used to suggest furniture arrangements, color schemes, and design themes.

What to make of AI

So, are all of you healthcare architects and designers going to be replaced by AI? Heck no. It cannot replace the deeply human qualities of empathy, ethics, intuition, and a sense of purpose that is essential to you and the work you do.

But if you’re not using AI as a tool to help problem-solve, stimulate your creativity, and produce better designs, then you’re missing the boat.

See the original article as well as more insights on Sara Marberry’s Blog.

This column originally ran on Sara Marberry’s Blog on February 28, 2025. Marberry is a healthcare design expert with over 25 years of experience in the healthcare and senior living design industry, who has written/edited five books and is a regular contributor to Healthcare Design magazine. Marberry also is a former Executive Vice President of the nonprofit Center for Health Design.

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Georgia State’s 155,000 sq. ft. Research Tower will provide state-of-the-art labs, flexible research space and modern teaching environments in the heart of Atlanta https://www.fmlink.com/georgia-states-155000-sq-ft-research-tower-will-provide-updated-labs-flexible-research-space-modern-teaching-environments/ Mon, 24 Feb 2025 15:27:14 +0000 http://v4.fmlink.client.tagonline.com/georgia-states-155000-sq-ft-research-tower-will-provide-updated-labs-flexible-research-space-modern-teaching-environments/ February 24, 2025 — Georgia State University broke ground Wednesday on its new 155,000-square-foot Research Tower off Decatur Street on the university’s downtown Atlanta Campus. The state-of-the-art facility, set to...

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February 24, 2025 — Georgia State University broke ground Wednesday on its new 155,000-square-foot Research Tower off Decatur Street on the university’s downtown Atlanta Campus. The state-of-the-art facility, set to be completed in 2026, will provide updated laboratories, flexible research space and modern teaching environments designed to foster innovation and collaboration.

GSU and state officials in hard hats and blue GSU scarves hold shovels with dirt at groundbreaking of Research Tower
GSU and state officials break ground on Research Tower at Georgia State University. Source: GSU

The nine-story Research Tower represents a crucial step forward in Georgia State’s strategic commitment to research and innovation and to increasing placemaking efforts in the downtown community.

Georgia State President M. Brian Blake, who delivered comments at the groundbreaking ceremony for the building January 15, remarked:

This is more than just a physical space. This building expands our capacity for discovery and learning both at Georgia State University and in the Atlanta area. We’re grateful for the support that’s helped make it a reality.

Also on hand for the groundbreaking event were Gov. Brian Kemp, Georgia House Speaker Jon Burns, Board of Regents Chairman T. Dallas Smith, University System of Georgia Chancellor Sonny Perdue, and Georgia State Provost and Executive Vice President for Academic Affairs Nicolle Parsons-Pollard.

As a highly active R1 research university, research expenditures at Georgia State have more than doubled in recent years, growing from just over $91 million in 2012 to over $215 million in 2022. This growth highlights the increasing demand for research space to support Georgia State’s expanding academic programs and knowledge community.

In addition to its academic and research goals, the new Research Tower will further strengthen Georgia State’s role in driving economic growth in the region. Georgia State University contributed $3.2 billion to the metro Atlanta economy in fiscal year 2023, according to a recent study prepared for the University System of Georgia.

According to GSU’s Facilities Management Services Major Projects page, the New Research Tower was designed by HOK and is being constructed by Brasfield & Gorrie.

Learn more about Georgia State’s Strategic Plan at GSU.

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