At Connect Advisors, Owner’s Representation is not a single role or a limited scope of oversight. It is a fully integrated approach built on a deep understanding of every phase of a project and every discipline that influences its success.
Traditional Owner’s Representation often focuses on coordination, reporting, and high-level management. While those functions are important, they only represent a portion of what is required to truly protect an Owner’s investment. Our approach is rooted in comprehensive project knowledge, supported by a team with diverse backgrounds across construction, preconstruction, design, and financial oversight. This allows us to move beyond observation and into proactive leadership, identifying risks early, aligning teams, and guiding decisions with clarity and confidence.
A key component of that approach is our in-house preconstruction expertise. Through this team, we are continuously gathering real-time market data, tracking pricing trends, and evaluating labor and material conditions across the country. This insight allows us to provide Owners with timely, relevant information that directly impacts project feasibility, budgeting, and execution strategy.
As part of our ongoing commitment to informed decision-making, we sat down with Evan Anderson, our Director of Preconstruction, to discuss where the construction market stands today and where it is heading. The insights that follow are intended to help Owners better understand current conditions and make strategic decisions, regardless of where they are in the development process.
Market Overview
In 2025, both commercial and manufacturing construction experienced declines, while data centers, energy, and infrastructure remained strong. Looking forward, potential growth sectors include advanced manufacturing, healthcare, and defense. Overall, non-residential construction remained relatively flat, while residential construction declined.
Key Trends We’re Observing
Increased Bid Participation
We are seeing a notable increase in bid activity among both subcontractors and general contractors. Open-bid projects, in particular, have experienced a significant rise in participation, with some public projects receiving more than 20 general contractor bids in markets where 5–6 was previously typical. This shift suggests a softening market. As competition increases, we anticipate bids will remain stable or trend slightly downward, making this an advantageous time to bring projects to market.
Prediction Markets and Tribal Gaming
We are closely monitoring the emergence of prediction markets as a recognized form of gambling. Functioning similarly to sports betting, these platforms could have implications for future casino development, particularly within tribal gaming.
The Data Center Boom
Data centers continue to dominate the construction landscape into early 2026. Despite growing community resistance in some areas, development remains strong nationwide. These projects are significantly impacting both labor availability and material pricing.
Notably, the specialized nature of data centers has created uneven demand across trades. Mechanical, electrical, plumbing, pipefitting, and low-voltage trades have seen substantial cost increases due to limited skilled labor availability. In contrast, because data centers prioritize function over form, demand for finish trades has remained relatively stable.
We are also hearing anecdotal reports of skilled workers, particularly electricians, leaving high-intensity data center projects in favor of slower-paced work that offers improved work-life balance. If this trend continues, it may place additional upward pressure on data center construction costs.
At the same time, rising community opposition and concerns about a potential “AI bubble” have led some developers to pause or cancel planned data center projects. This is a trend we will continue to monitor closely.
Economic Uncertainty Impacting Development
Economic uncertainty is causing some developers to delay or halt planned projects. Projects that were previously marginal in meeting financial thresholds are, in some cases, no longer viable. As a result, we expect a modest short-term decline in developer-driven construction activity.
Material Pricing and Tariffs
Tariffs were a major topic throughout 2025 and contributed to a 2.8% increase in construction material prices. In many cases, suppliers and manufacturers used tariffs as an opportunity to raise prices broadly, including on domestically produced materials not directly affected.
For example, copper wire and cable prices rose sharply, increasing 4.6% in December alone and more than 22% year over year. Prices for primary nonferrous metals have climbed nearly 62% over the past 12 months.
Oil Prices and Cost Pressures
Rising oil prices are once again a key driver of construction costs. Ongoing geopolitical tensions have contributed to increased fuel prices, which directly impact heavy equipment operations, transportation, and logistics.
Additionally, asphalt and other bitumen-based materials, closely tied to crude oil, are seeing price increases. While petrochemical-based products do not always move in direct correlation with oil, rising input costs and inventory turnover are expected to drive increases in materials such as PVC and HDPE piping, membranes, adhesives, sealants, and other plastic-based products.
Workforce Constraints Relaxing
In 2025 Heightened immigration enforcement affected labor availability in certain regions. Reports indicated that some workers were relocating or leaving the industry due to uncertainty, contributing to tighter labor markets and increasing wage pressures. However, in February of 2026 construction hiring fell to the slowest rate on record and experts do not expect hiring to rebound in the near future.
Looking Ahead
If cost is a major concern, now is the time to buy. As we enter the busy spring and summer construction season, these dynamics will continue to shape project planning and execution. Staying informed and proactive will be critical in navigating this evolving environment.
The construction market continues to evolve, and while uncertainty remains in certain sectors, there are clear opportunities for Owners who are informed and positioned to act strategically.
At Connect Advisors, we believe that understanding the market is not just about tracking trends, it is about translating those trends into meaningful direction for your project. Through our integrated approach and in-house preconstruction insight, we help Owners navigate shifting conditions with clarity, aligning decisions around cost, schedule, and long-term value. Whether your project is in early planning or preparing to go to market, having the right information at the right time can significantly impact outcomes. Our team is here to provide that perspective and partner alongside you to ensure your project is positioned for success from the very beginning.
