As we close out the third quarter and begin the fourth, I’ve been thinking about how much can change between the early planning stages of a project and the day construction begins. Material costs, financing and the needs of the people who will use a building all play a part. When owners, design teams and builders work through those factors together early, we can make better decisions about the program, budget and timing.
That idea runs through the insights we’re sharing this quarter. Whether you’re considering an industrial facility, evaluating a multifamily opportunity, planning a community-focused project or thinking about what’s next for a hotel or office property, I hope these articles offer a useful perspective as you make plans for the rest of the year and beyond.
Thank you for continuing to trust us with your ideas and projects. We’re looking forward to what we can build together.
Sincerely,
Taylor Hale, President
FIVE KEY INSIGHTS
FIVE KEY INSIGHTS
Construction costs are up from a year ago, with steel, aluminum and copper among the materials seeing increases. For owners and developers planning projects into next year, tariffs and annual supplier increases can affect early budgets before construction begins. Bringing builders and trade partners into the conversation early can help test pricing, identify procurement opportunities and make more informed decisions about scope and timing.
Industrial tenants are making larger, longer-term commitments to modern facilities, while developers are choosing new projects more selectively. In DFW, demand tied to manufacturing and data center supply chains is worth watching. Understanding a prospective user’s needs early can help shape the site, building and delivery plan.
Texas developers are looking ahead to the next cycle, but new projects face closer scrutiny after a wave of supply, flat rents and rising operating costs. Capital is favoring strong locations, conservative assumptions and projects with a clear reason to move forward. Understanding submarket supply and testing costs early can help determine which opportunities are ready to pursue.
AI is changing how companies plan for their teams, but the effect on office demand will differ by industry, market and building quality. Some occupiers may need less space, while others continue to seek high-quality workplaces. It is important to understand the tenants the building is designed to serve and how their space needs could evolve.
Business travel and convention demand are strengthening, contributing to a more positive hotel outlook. Performance still differs by market and hotel type, with luxury properties expected to outpace the broader industry.