Currently Commercial: Breaking Ground, What's Next In Commercial Construction 

Construction has always been a moving target. But in 2025, with high interest rates, uncertain supply chains, evolving client demands, and persistent labor shortages, the pace and complexity of change in the commercial building landscape is forcing developers and investors to rethink how—and when—they engage construction partners. 

That reality was front and center during the latest session of Currently Commercial, a panel conversation titled Breaking Ground, What’s Next in Commercial Construction, moderated by David Wilson, CCIM, Senior Vice President of Real Estate Development at Ryan Companies. Wilson was joined by three industry leaders from across the country: Daryl Luter, President at Fulcrum Associates in New Hampshire; Eric Engh, Senior Vice President of Construction at Ryan Companies; and Ian McDowell, Vice President at Sundt Construction in Arizona. Together, they offered a grounded look at the new realities facing builders and developers alike. 

“Construction isn’t just the last phase of a deal. It’s a critical driver of value, risk, and trust. The more we collaborate across roles, the better we serve our markets.” 
— David Wilson, CCIM 

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Delays, Disruptions, and the Procurement Curve 
At the core of today’s challenges is procurement. Projects once delayed by design or financing hurdles are now getting stuck behind transformers, switchgear, and copper components with year-long lead times. Engh emphasized how this shift is changing not only project timelines but also how capital is deployed. 

“Anything with copper or international components now requires early equity,” he said. “That’s before design is finalized, before debt is in place. It’s uncomfortable—and it’s the norm.” 

McDowell echoed the sentiment, sharing how data centers and semiconductor facilities in the Southwest are booming, but many get stalled waiting on power infrastructure. “You can’t move forward without power,” he said. “And substations don’t show up quickly. The lead time on gear can be longer than the actual build.” 

“Procurement is now the bottleneck. If materials aren’t ordered before you break ground, the project timeline is already off.” 
— Ian McDowell, Sundt Construction 

Regulatory Momentum and Creative Solutions 
While national challenges persist, regional flexibility is offering some relief. In New Hampshire, Luter described how state-level regulatory changes have improved permitting timelines dramatically. 

“DOT [Department of Transportation] approvals that used to take nine months now cap at 60 days,” he said. “If the state doesn’t respond, you’re approved. That’s real momentum.” 

He also highlighted creative approaches that reflect a tight-knit community mentality. Employers are investing in tiny home developments, workforce housing, and childcare infrastructure—all to retain talent in places where affordability is a challenge. Life sciences, in particular, are fueling this growth. “We’re seeing a market emerge around biotech and manufacturing. It’s exciting—and it needs support systems to sustain it.” 

Cost, Capital, and Conversations 
With interest rates still elevated and borrowing power constrained, developers face hard decisions. “There’s no lack of interest,” McDowell noted. “But projects keep sliding to the right. Everyone’s waiting for the market to blink—waiting for rates or costs to drop.” 

In that environment, panelists urged proactive cost modeling and early involvement of construction teams. “Preconstruction services are no longer a nice-to-have,” said Luter. “They’re essential. We help design smarter, spot cost risks sooner, and guide procurement strategy from day one.” 

Engh added that teams are increasingly relying on initial and final GMPs (guaranteed maximum prices) to navigate unknowns. “It lets everyone stay engaged while giving room to adjust for market swings,” he explained. 

“Collaboration early on isn’t just efficient—it’s protective. It de-risks everything from pricing to timelines.” 
— Daryl Luter, Fulcrum Associates 

Technology, Tools, and Talent 
Technology is also redefining how construction teams visualize and deliver projects. Engh described how Ryan Companies uses high-end architectural animations to communicate with clients from the earliest design phases. “Not everyone can see a building in 3D off a 2D drawing,” he said. “These tools level the playing field.” 

As for AI, McDowell said it’s making inroads—mainly in document control, meeting minutes, and spec review—but human oversight remains critical. “You still need to read the specs,” he said. “But AI helps us move faster, especially in close-out and compliance.” 

Yet even with smarter tools, labor remains a looming concern. The average tradesperson is in their 50s, and the pipeline isn’t refilling fast enough. “We’ve got a 10-year problem, not a 30-year one,” Luter warned. “This workforce gap is happening now.” 

Relationships Matter—Start Them Early 
If there was one unanimous takeaway, it was this: construction teams need a seat at the table sooner. Brokers and developers often set expectations long before a builder is involved, only to find the timeline or cost projections no longer hold up in today’s climate. 

“We’re not just builders—we’re strategic partners,” said Luter. “Use us that way. The earlier we’re involved, the more value we add.” 

Engh emphasized the need to be clear about the nature of the relationship. “Is this transactional or relational? That determines everything—from how the team shows up to how solutions are delivered.” 

And McDowell offered a challenge to the broader industry: “Get in front of young people. Share what you love about this work. The more we talk about it, the more we can inspire the next generation to join us.” 

As the panelists made clear, today’s construction environment demands flexibility, foresight, and true collaboration. From navigating volatile procurement cycles to investing in workforce development and adopting smarter technology, the path forward requires a more integrated approach between CRE professionals and their construction partners. The message was clear: involve builders early, adapt quickly, and treat your construction team as a strategic advantage, not just a cost center. 

This conversation was just one installment of Currently Commercial, CCIM Institute’s ongoing video series exploring the forces shaping the commercial real estate landscape. Stay tuned for future sessions featuring expert insight from across the industry—and join live to be part of the discussion in real time.