Q4 2025 / Q1 2026 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:
Strategy Beats Momentum
Construction activity in Phoenix and Dallas-Fort Worth remains healthy, but success in 2026 is increasingly driven by timing, tenant alignment, and early decision-making. With material costs stabilizing and supply chains improving, proactive preconstruction and integrated design-build execution are critical to delivering cost and schedule certainty.
AI Reshapes Construction
The rapid growth of data centers in both markets is accelerating demand for power, infrastructure, and specialized trades. This expansion is influencing labor availability, material pricing, and project timelines well beyond the hyperscale sector.
Power Limits Progress
In Phoenix, utility capacity and long-lead electrical equipment are often the pacing factors for project feasibility. In Dallas, strong infrastructure continues to attract development, but demand for electrical and mechanical trades is intensifying. Across both markets, competition for skilled labor and critical equipment is impacting cost and schedule assumptions across all commercial sectors.
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A Truckload of Holiday Cheer for Phoenix Children’s
This holiday season, The David R. Sellers Foundation set out on a heartfelt mission: to fill 10 LGE Design Build trucks with toys for the families at Phoenix Children’s Hospital.