The appetite for industrial space
Is your crew prepared for a life-threatening emergency? February is American Heart Month—a reminder that CPR and AED training can mean the difference between life and death on the job site. Plus: Meet the construction site robot that can drill, sand and mobilize 400-pound payloads.
Here's a peek at what's in today's issue:
// Why everyone on your crew should know CPR
// How to prepare for tariff-related price uncertainty
// What contractors think about the future
'The need for industrial space has been strong'
Real-estate brokers have keen insight into trends that impact construction. Grant Fulkerson, SIOR, a principal with Lee & Associates, has brokered nearly 1,000 sale and lease transactions, valued at more than $1 billion. We asked him to share his opinion on what’s moving the marketplace and how it will impact the construction industry.
What are you seeing in terms of demand from investors, developers and tenants compared to last year?
Sale prices and lease rates experienced steady to rapid increase until their plateau in 2024. The industrial sector has maintained its strength over the past year and demand outpaces supply in most markets.
What are you noticing about requests from tenants?
Large break rooms/cafeterias are less and less necessary. If industrial buildings have a significant mezzanine, the areas underneath are often more functional as engineering/assembly space rather than traditional office space.
What are some trends you hope change this year?
Increase in supply, reduction in construction and improvements cost and adjustments in lease rates to compensate for increases in OPEX—mainly taxes and increasing insurance.
And one you hope continues?
Demand. The need for industrial space has been strong. The obstacle has been building availability.
>> Who we're following: Clark Construction on Instagram. This large construction firm shares videos and photos of large-scale projects with its 17.2K followers.
>> What we're listening to: "The One Thing Missing from Your Hand-Off Meetings that Drives Project Success." In this episode of The Construction Trailblazers podcast, host Samantha C. Prestidge covers how to capture and use customer insights.
>> What we're reading: The Cost of Doing Business Study, 2025 Edition (NAHB, 2025). Find industry-wide averages and financial performance data and insights by builder type and size in this updated edition.
>> What's happening soon: CMAA Focus25 (Mar. 9-11), Las Vegas. Take a deep dive into the markets, trends and factors driving successful project delivery.
>> Just for fun: Try a NASA Nap! Science shows that short rests can improve performance and alertness without making you groggy.
Site Safety: Expand CPR and AED training
February is American Heart Month, the perfect time to re-commit to CPR and AED training for your crews.
Crews must follow OSHA regulations that require at least one person present on a construction site who is trained in first-aid (including CPR) if there’s not “an infirmary clinic, hospital, or physician, that is reasonably accessible in terms of time and distance to the worksite, which is available for the treatment of injured employees.” The on-site responder must have a valid certificate in first-aid training from the U.S. Bureau of Mines, the American Red Cross or an equivalent organization.
However, the American Heart Association recommends a higher standard: portable AED units on-site and everyone trained to use the units and administer CPR. AEDs are easy to use—just turn them on and they deliver audible instructions to responders. Receiving bystander CPR and/or AED deployment can increase the odds of survival during a cardiac episode.
Consider this cautionary tale from E.R. Snell Construction, where a crew member saved a co-worker's life with his quick action. “If it weren’t for me having that CPR training, we would have been in big trouble that day,” remembers Jimmy Wilson. “In my opinion, every workplace should offer some kind of first-aid training and CPR classes because it really helped us.”
Why it matters: About one in 25 construction workers are diagnosed with cardiovascular disease—and more are working undiagnosed. About the same number have diabetes, which dramatically increases heart attack risk. The AHA estimates that one in five incidents of cardiac arrest happen at work or home.. (American Heart Association)
>> Building Boom: Data center construction crests $31.5B
>> Funding Freeze: Pennsylvania governor sues over IRA pause
>> Sustainable Source: Mortar from recycled plastics insulates better
>> Rendering Reveal: New NYC enviro and climate center planned
Tariff Tension: How to deal with price uncertainty
The new administration’s tariffs on imported steel and aluminum from all foreign countries and building products like cement and lumber from Canada and Mexico may jump-start domestic production but could hurt the building industry. That’s in part because it will take time for American manufacturers to ramp up production, potentially delaying projects. But a potentially larger impact is cost.
“Contractors now have just one more thing to have to factor into their bidding and estimating process to figure out how they can be competitive,” notes Brian Kassalen, CPA, CFF, principal and construction industry lead at Baker Tilly. He advises companies to do three things to reduce the impact:
- Talk to suppliers about alternative sourcing strategies, bulk purchasing agreements and closer collaboration.
- Put a strong estimating team in place.
- Consider adding escalation clauses to contracts to reduce impacts from fluctuating material costs.
Why it matters: “Even if we’re domestically producing the concrete or the cement in the U.S. versus importing, some of the components, like the aluminum… are going to add to the cost of even domestically producing it,” Kassalen cautions. Unanticipated price hikes and unmet demand can blow up budgets and timelines, so being prepared is vital. (For Construction Pros)
Contractor Confidence: Apprehension after a rocky start
Contractors’ faith in the future is waning. The National Association of Home Builders’ February confidence index reveals a steep five-point decline from January—pushing the rating to its lowest level since September 2024. Several factors drove the drop:
- Tariffs and the related price increases and supply chain implications
- Mortgage rates continue to rise
- The new Administration’s policy blitzkrieg
- Extreme weather delaying projects
Why it matters: “The outlook for more home-building is cloudy and gray as import tariffs are likely to push up building costs in the months to come, and home-buyers report the higher cost of borrowing is holding them back from being able to afford and purchase a new home,” says FWDBonds' chief economist, Chris Rupkey. (U.S. News & World Report)
- Estimate more accurately! Enroll in the General Building Contractors Association's Introduction to Construction Estimating course.
- Limit your liability. (Mar. 19) Find out how to reduce sound transmission class deficiencies in this webinar from The Association of the Wall and Ceiling Industry.
- Get safety certified. Learn to make the job site safer in this on-demand course from the National Center for Construction Education and Research.
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The Level is written by Margot Lester and edited by Katie Parsons.
