After a respite in 2024, construction materials and costs are poised to resume growth, signaling a pivotal moment for commercial real estate decision makers.

Although elections introduced uncertainty around environmental and energy policies, the push for green building practices, energy efficiency, and reduced carbon footprints will continue shaping project requirements through local regulations and client targets. Data centers, healthcare, and advanced manufacturing have embraced sustainability as integral to growth, putting extensive pressure on related materials. With added shocks from natural disasters, prices are set to rise in 2025 across a broader range of inputs. Having the right technologies and team is critical for managing costs. However, technical capacity is in short supply within the construction industry and corporate real estate function as well.