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.
HIGHLIGHTS FROM M&F’S 3RD QUARTER
LAS COLINAS DUAL BRAND HOTEL
Construction is complete on the Courtyard and Residence Inn by Marriott dual-brand hotel in Las Colinas. The property is now fully operational and welcoming guests.
COTA T11 CAR COMMUNITY PHASE 2
Construction continues to advance at COTA T11 Car Community Phase 2A, with the finish line coming into view. Across Buildings 10, 11, and 12, crews are establishing permanent power while pushing through final plumbing and HVAC work. Windows are arriving just in time, with installation now underway across the project. The team is keeping the pedal down toward an initial turnover ahead of race weekend for the Formula 1 US Grand Prix on October 25.
MOUNTAIN CREEK MULTIFAMILY
The team is approximately 60 days from first turnover. Across the community, crews are completing exterior work while MEP, drywall and interior finish trades continue inside the buildings. Work on the amenities is also progressing.
PECAN VALLEY CENTER
We completed construction of the outpatient behavioral health facility in Granbury ahead of schedule and joined project partners for a ribbon cutting to celebrate its completion.
OMNI BUILDING
Work is progressing on Building 1 in Austin. Mechanical rough-in has passed inspection, and office wiring and lighting are in place. Crews are preparing to install plumbing fixtures and drywall while the team works toward permanent power, which will allow the space to be conditioned.
HYATT HOUSE DFW
We celebrated the building’s topping out this quarter. The team is now focused on getting the building dried in, bringing power online and gearing up for interior finishes.
AMERICAN NATIONAL BANK & TRUST
We kicked off our fourth project with American National Bank & Trust, this one in Flower Mound. Phase 1 has moved quickly and is nearing completion, with the team preparing to transition to Phase 2. The phasing switchover is scheduled for 10/5 with the bank, with Phase 2 operations expected to begin around 10/12.
HERITAGE RANCH OFFICE & RETAIL
Site mobilization is underway. Crews have staked the building pads, stripped the site and begun excavation for the office building. Work is moving into pad preparation as temporary fencing and the site office are put in place.
MCKINNEY AIR BUSINESS PARK
Work is moving quickly on both buildings. The second panel pour for Building 2 is complete, with the final pour planned for next week, and crews have begun forming and placing rebar for Building 1 panels.