Q2 2026 Construction Delivery Outlook

The construction market rewards forward thinking and informed decision-making. Within this report, we’ve gathered data that captures the full picture of market trends and conditions in Arizona and Texas, and the proactive measures your business should be taking in response. Now, we’re placing that data in your hands. 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:
Demand Has Broadened
While office and retail stabilize, industrial fundamentals in Phoenix and Dallas-Fort Worth are among the strongest on record. The opportunity extends even further, with tenant improvement, mixed-use, hospitality, and IOS all generating real construction volume, and owners across sectors being increasingly positioned to act on it.
Labor Stabilizes Unevenly
Construction labor in Phoenix and DFW is stabilizing, but competition for skilled trades remains elevated. Data center and semiconductor growth continues to compete for the same specialty contractors commercial projects depend on, placing pressure on scheduling and cost assumptions.
Tariffs Reward Proactivity
Tariff-driven increases on steel, aluminum, and copper are the most significant material cost pressure the market has seen since 2022, and long lead times on electrical equipment are compounding the challenge. Teams that engage early in preconstruction and move quickly on procurement are best positioned to protect their budgets and schedules.
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