Introduction: Understanding Texas Commercial Construction Cost in 2025–2026
The cost of commercial construction in Texas is changing. This is happening because the state is growing in areas like industrial, retail, healthcare, and hospitality.
For developers and investors, it’s important to know the Texas commercial construction cost per square foot. This information is useful for planning in 2025 and 2026. Market conditions are becoming more stable after years of ups and downs. However, local labor trends and material costs still affect project results.
This guide provides updated commercial construction cost data for 2025–2026. It covers different building types and regions. It also highlights major trends affecting budgets in Texas.
Texas Commercial Construction Cost Overview (2025–2026)
Average commercial construction costs in Texas now range from $190 to $340 per square foot. This depends on the type of building, the region, and how complex the project is. That’s a 3–6% annual increase over 2024 levels. This shows steady but rising pressure from subcontractor wages and code requirements.
| Building Type | 2024 Avg. ($/SF) | 2025–2026 Avg. ($/SF) | Trend |
|---|---|---|---|
| Retail / Restaurant | $200 | $230–$370 | Rising due to finish quality |
| Office / Corporate | $185 | $210–$330 | Moderate escalation |
| Industrial / Warehouse | $140 | $160–$250 | Stable with steel price recovery |
| Medical / Healthcare | $250 | $280–$440 | Highest growth rate |
| Multifamily / Mixed-Use | $190 | $230–$350 | Increasing demand |
| Hospitality / Hotel | $250 | $310–$450 | Fire protection and FF&E impact |
Outbound data sources:
- RSMeans Construction Cost Index
- Texas Construction Association
- U.S. Bureau of Labor Statistics Construction Reports
Commercial Construction Cost per Square Foot by Project Type
| Project Type | Low Range ($/SF) | High Range ($/SF) | Primary Cost Factors |
|---|---|---|---|
| Retail / Restaurant | $210 | $370 | HVAC load, finishes, kitchen MEP |
| Office / Corporate | $190 | $330 | Tenant build-out, elevator systems |
| Medical / Healthcare | $270 | $440 | Plumbing, electrical, code compliance |
| Industrial / Warehouse | $130 | $250 | Tilt-wall systems, slab thickness |
| Multifamily / Mixed-Use | $200 | $350 | Parking podium, shared amenities |
| Hospitality / Hotel | $260 | $450 | FF&E, fire suppression, ADA compliance |
Pro Tip: The average cost of commercial construction per square foot in Texas is lowest for industrial buildings. It is highest for hospitals and hotels.
Regional Construction Cost Differences in Texas
| Region | Average Range ($/SF) | Market Insights |
|---|---|---|
| Houston | $185 – $320 | Strong trade base; competitive pricing |
| Dallas–Fort Worth | $190 – $340 | Logistics growth and higher subcontractor demand |
| Austin | $210 – $360 | High wages and land costs drive escalation |
| San Antonio | $175 – $300 | Lower-cost market; expanding logistics sector |
Synonym use: The construction cost per square foot varies between cities due to land prices, trade density, and permitting timelines.
Key Cost Drivers for 2025–2026
1. Labor and Subcontractor Availability
Labor remains the largest factor in commercial construction cost, with skilled trades commanding 4–5% annual wage growth through 2026.
2. Material and Supply Trends
Structural steel, concrete, and MEP materials are stabilizing, though lead times remain long.
3. Code Compliance and Energy Standards
Adopting new energy efficiency and fire protection codes adds 2–3% to total construction cost.
4. Financing and Interest Rates
Financing conditions in 2025–2026 will impact project timelines, especially for speculative builds.
5. Site and Infrastructure Complexity
Projects requiring significant utility or drainage work typically add 10–15% to the overall construction cost per square foot.
Commercial Construction Cost Trends for 2025–2026
- Design-Build Expansion: Design-build projects now account for more than 55% of Texas commercial builds due to cost control.
- Sustainability and Efficiency: Energy-efficient materials and solar-ready designs are becoming standard.
- Prefabrication and Modular Growth: Prefab reduces waste and stabilizes construction pricing.
- Industrial Sector Strength: DFW and Houston lead the nation in industrial development activity.
- Technology Integration: BIM and predictive modeling tools improve cost accuracy.
How to Use Commercial Construction Cost Data Strategically
- Benchmark Realistically: Treat these as regional averages, not fixed prices.
- Engage Early: Contractors like Maxx Builders can lock in subcontractor rates to prevent overruns.
- Use Data-Driven Decisions: Compare project bids against current Texas construction cost benchmarks.
- Maintain Contingency: Always include 3–7% for unknowns or escalation.
Why Developers Choose Maxx Builders
Maxx Builders delivers commercial construction projects across Texas with unmatched cost control and quality.
Our capabilities:
- Transparent, data-backed estimating.
- Robust Texas subcontractor network.
- Expertise in retail, industrial, and medical construction.
- Value engineering that optimizes commercial building cost efficiency.
Ready to plan your 2025–2026 project?
Request a Commercial Construction Cost Estimate →
FAQs About Commercial Construction Cost in Texas
1. What is the average commercial construction cost per square foot in Texas?
It ranges between $190 and $340 per SF, depending on building type and market.
2. Why is commercial construction more expensive in Austin?
Labor shortages and land scarcity increase construction pricing in Austin by 10–15%.
3. How can I reduce commercial building cost?
Use design-build delivery, lock in subcontractor pricing early, and value-engineer systems with your contractor.
Conclusion: Building Smarter in 2025–2026
As demand grows statewide, accurate commercial construction cost data is vital for every Texas developer. Understanding price trends and project variables helps you manage budgets and maximize returns.
With proven experience, local expertise, and transparent estimating, Maxx Builders ensures that every project—whether retail, medical, or industrial—delivers efficiency, quality, and ROI.
Start planning your next commercial project today → Contact Maxx Builders
