Q2 2025 Construction Delivery Outlook
We’re here to ensure that you have the most up-to-date information about market trends and conditions. Within this report, you will find data that clarifies the ‘Why’, including the most current market conditions, the observed impact of these conditions, and proactive measures we can take to be fully prepared for what’s to come. This report focuses on the design and construction industries through the most recent data, so that together, we can enter the market better equipped and more confident.
Key Takeaways:
Markets Split,
Strategy Matters
In Phoenix and Dallas, industrial and retail construction remain strong, but caution is rising. Phoenix industrial leads but faces softening demand; Dallas sees record deliveries but rising vacancies. Retail remains stable in both markets, while office sectors shift toward high-end repositioning. Success depends on targeting the right submarkets and sectors.
Tariffs Tighten
the Supply Chain
The return of aggressive U.S. tariffs—particularly a 30% rate on Chinese imports—is shaking up construction logistics. While material prices are mostly stable now, lead times for critical components (e.g., electrical gear, masonry) are stretching. Global shipping and domestic freight challenges amplify the need for early procurement and strategic sourcing.
Labor Strong,
Design-Build Wins
Construction employment is rising in Arizona and Texas, led by surging industrial demand. Still, timing and coordination are everything. LGE’s integrated design-build model helps clients mitigate delays, attract top subcontractors, and compress schedules—giving them a vital edge in a volatile environment.
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