Is it Time to Build?
2025 Construction Costs and Opportunities
If you’re thinking about breaking ground on a commercial project this year, you’re not alone — but you may also be wondering if 2025 is the right time to build.
The short answer? Yes — if you have the right strategy, team, and financing in place.
Let’s break down what’s happening in the market right now, and how savvy investors are still finding profitable ground-up opportunities.
📦 Material Prices: Finally Stabilizing
The wild price swings we saw in 2021–2023 have started to calm.
Lumber, concrete, and steel prices have largely stabilized compared to their pandemic peaks.
That said, prices are still above pre-2020 levels, and volatility remains in sectors affected by energy and supply chain disruptions.
Pro Tip: Lock in pricing early through supplier agreements or work with contractors who have volume purchasing power.
👷 Labor Shortages: Still a Challenge
Skilled labor remains one of the biggest bottlenecks in new construction.
The commercial construction industry is short over 500,000 workers nationwide — and that affects timelines and budgets.
To adapt:
Choose GCs with a reliable subcontractor network.
Factor realistic build times into your underwriting.
Avoid overpromising to tenants or investors.
🏛️ Permitting & Delays: Plan for Bureaucracy
Permitting timelines have improved slightly since the peak backlog of 2022–23, but in many jurisdictions, delays still persist.
Environmental reviews, rezoning hearings, and utility approvals can stretch your pre-construction timeline by 3–9 months depending on your city.
Workaround:
Partnering with a brokerage (like ours) that understands the local planning departments and approval process can cut weeks or even months off your project timeline.
💰 Where the Opportunity Lies in 2025
Despite these challenges, many investors are moving aggressively on new construction in targeted sectors:
Build-to-rent in growing suburban markets
Flex industrial space for last-mile logistics
Medical office and retail in underserved areas
Office-to-ground-up replacement projects in outdated zones
Why? Because demand is shifting, and many investors are sitting on the sidelines. That opens the door for bold, well-capitalized builders to act now — and lock in tomorrow’s cash flow at today’s costs.
🧭 Why Work With Us
We don’t just help you find the land. We:
Connect you with off-market opportunities
Help underwrite the deal and structure financing
Coordinate with local experts to speed up approvals
Bring lender relationships that understand construction inside and out
From sourcing to shovel to stabilization, we’re with you at every step.
💬 Ready to Build? Let’s Talk.
If you’re serious about new construction in 2025, now is the time to lay the groundwork.
We know the market. We know the lenders. And we’ll help you make smart, strategic moves in a complex environment.
Contact us today for a free consultation and let’s build something strong — together.
