DALLAS  April 13, 2026 – Geopolitical tensions, macroeconomic shifts, and other factors pressuring the built environment may drive higher 2026 nonresidential construction costs, according to The Beck Group’s newly released biannual Construction Cost Report.

The report said construction costs are projected to range from 4.5 percent to 6.5 percent in this year, compared with a historical annual percentage rate increase of around 5 percent.

Ongoing strong demand for data centers and large-scale infrastructure projects is also considered a factor in this year’s cost projection. However, construction costs may surpass anticipated levels this year if the Iranian conflict boosts energy prices significantly higher over a prolonged period.

The report, the first of two this year, found that significant tariff increases on imported metal products in early 2025 didn’t result in industry fears of a substantial cost escalation that year. Construction costs grew about 5 percent last year.

“Our report’s findings reflect owners and developers navigating a market shaped by improving financial conditions alongside persistent cost and labor constraints,” said Fred Perpall, CEO of Beck. “Across the AEC industry, we’re seeing cautious optimism, supported by easing tariff pressure in an environment where labor availability, geopolitical uncertainty, and supply-chain dynamics continue to impact cost and schedule risk.”

The report said buildings have also generally become more costly to design and build due to the natural effect of cost escalation over time. Commercial office buildings nationally are approaching $300 per SF, compared with a recent historic cost of $200 per SF.

The report’s other key highlights include:

• Updated cost data across Beck’s markets and building types.

• Market insights on cost impacts, labor conditions, and broader economic signals

• Beck’s application of AI across its industry-leading design-build process

For more of the report’s findings, go to beckgroup.com to download a copy of the report.

About The Beck Group
The Beck Group is a collaborative team of architects, builders, and technology experts transforming how clients design and build. With over 1,000 employees across eleven offices in the U.S. and Mexico, Beck is the largest design-build firm in the country. To learn more about Beck and its commitment to building better communities, visit beckgroup.com