Glass and Glazing Contractors NAICS 238150

May 7, 2026 - US Retail Construction Hit Record Low in Q1 2026

• US retail construction has fallen to historic lows even as investor demand surges, according to Bisnow. CBRE reported 4.7 million square feet of completions nationwide last quarter, the lowest since CBRE began tracking retail construction completions in 2005. High costs and labor shortages have pressured retail construction. Availability rose 10 basis points to 4.9% in Q1 2026 despite 1.7 million square feet of positive net absorption, as bankruptcies added space back to the market. New development is concentrated in the Sun Belt, led by Phoenix, followed by Dallas, San Antonio, Houston, and Bakersfield, California. Neighborhood and strip centers drove absorption. Meanwhile, institutional investment is accelerating, with major deals and funds targeting retail assets, and US retail property sales volume reaching $66.8 billion in 2025, up 35% year over year.
• The US hotel construction pipeline totaled 6,020 projects and 705,825 rooms in Q1 2026, down roughly 5% from Q1 2025, according to Lodging Econometrics, and reporting by Hotel Dive. Despite the overall decline, the luxury segment hit a record 102 hotels, up 16% year over year, and hotel conversions rose 3% to 1,461 projects. High debt costs in 2025 and the completion of projects tied to events such as the FIFA World Cup contributed to pipeline shrinkage. Dallas led all markets with 184 projects, followed by Atlanta, Phoenix, Nashville, and Austin. Phoenix is forecast to see the most hotel openings in 2026, with 27, ahead of New York and Dallas. Upscale, upper midscale, and midscale segments accounted for 75% of pipeline projects. Lodging Econometrics forecasts 682 new hotels with 77,323 rooms will open in 2026, a 1.4% year-over-year increase.

• Demand for building design services showed signs of stabilizing in March, according to an April report by the American Institute of Architects (AIA). The AIA’s Architecture Billing Index (ABI) rose to 49.8 compared to February's reading of 49.3. Any reading of 50 or more indicates growth in architectural billings. March's reading marked the closest the ABI has been to the 50-point growth threshold since early 2023. The score for new project inquiries rose to 56.8 in March from 52.3 in February, but the new design contracts index decreased to 47.8 from 48. The AIA's Chief Economist Richard Branch said, "While billings could soon see positive growth for the first time in three years, ongoing economic and geopolitical challenges, such as the Iran conflict and labor shortages, pose significant risks to recovery. These external issues will have a significant impact on the health of construction activity in both the near and long term."
• North American construction and engineering spending is expected to remain flat in 2026 after declining by 1% in 2025, according to FMI’s second-quarter 2026 North American Engineering and Construction Outlook. Within building segments, office construction is projected to grow 6% in 2026, driven by strong data center demand, while health care (+2%) also expands amid large hospital projects. Education, and amusement and recreation are expected to remain stable but notch flat spending growth in 2026. Several segments will decline, including lodging (-4%), commercial (-6%), and public safety (-2%), reflecting financing constraints and uneven demand, while manufacturing construction is also projected to fall (-2%) following a surge in prior years. Residential building activity continues to weaken, with single-family construction forecast to drop 2% due to affordability pressures and elevated mortgage rates. Multifamily spending is projected to be down 1% as high supply levels weigh on rent growth and new development.