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Viking Enterprise LLC is part of eXp Commercial, an agent-led, cloud-based commercial real estate brokerage with agents across the globe.

Your Trusted Katy / Fulshear & Houston Commercial Real Estate Brokerage

Viking Enterprise LLC is part of eXp Commercial, an agent-led, cloud-based commercial real estate brokerage with agents across the globe.

Looking to invest, buy, sell or lease? We can help.

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Looking to invest, buy, sell or lease? We can help.

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eXp Commercial - Viking Enterprise Team's real estate network provides unparalleled commercial real estate services to Tenants and Landlords around the Katy- Houston area. Our knowledge, experience, and reputation sets us apart from many firms.

A commercial property owner might have various plans that would necessitate the services of a commercial real estate broker. Some of the common scenarios include:

1. Selling the Property: If the owner decides it’s time to sell the property, a commercial real estate broker can help determine the market value, market the property effectively, and negotiate with potential buyers to get the best possible price.

2. Leasing Space: For property owners looking to lease out part or all of their commercial space, a broker can help find suitable tenants, negotiate lease terms, and ensure the lease agreements meet all legal requirements and serve the owner’s best interests.

3. Acquiring More Properties: Owners looking to expand their portfolio would benefit from a broker's knowledge of the market, access to listings, and negotiation skills to secure additional properties at favorable terms.

4. Property Management: While not all brokers offer this service, some commercial real estate brokers or their affiliates offer property management services. This can be particularly appealing for owners who prefer a hands-off approach or are managing properties from a distance.

5. Market Analysis: Owners considering future developments, renovations, or rebranding of their property might engage a broker for a comprehensive market analysis. This helps in understanding current market trends, the demand for different types of spaces, and potential returns on investment for various strategies.

6. Refinancing: In situations where a property owner is looking to refinance their property, a commercial real estate broker can provide valuable insights into the property’s current market value, assist in gathering necessary documentation, and even help in finding the best financing options.

7. Partnership or Investment Opportunities: Owners interested in exploring partnerships, joint ventures, or seeking investors for expansion or development projects might use a broker to find and vet potential partners or investors.

8. Consulting on Zoning and Use Changes: When contemplating a change in the use of the property or dealing with zoning issues, a broker with experience in local regulations and the specific property type can provide guidance and strategic planning assistance.

9. Exit Strategy Planning: For owners looking to plan an exit strategy from their investment, whether it’s through a strategic sale or a gradual winding down of operations, brokers can provide market insights, timing advice, and valuation services to optimize the exit process.

In any of these scenarios, the expertise and services provided by a commercial real estate broker can save the property owner time and money, while also providing access to a wider network of potential buyers, tenants, and industry professionals. Give us a call today!

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🏗️ Construction Costs in 2026: Why Waiting for Prices to Fall Is a Costly Mistake 🚧

🚧 Why Construction Costs Aren’t Dropping Anytime Soon — What Investors Must Plan For 🏗️

Commercial Real Estate

January 15, 2026•2 min read

🚧 Why Construction Costs Aren’t Dropping Anytime Soon — What Investors Must Plan For 🏗️

🏗️ Construction Costs in 2026: Why Waiting for Prices to Fall Is a Costly Mistake 🚧

Why Construction Costs Aren’t Dropping Anytime Soon

Many investors and business owners are waiting for construction costs to “normalize.” Unfortunately, that expectation is increasingly disconnected from reality. While inflation has moderated, construction pricing remains structurally elevated—and the forces behind it are long-term, not temporary.

For developers, owner-users, and commercial investors, understanding why costs are staying high is critical for underwriting, deal timing, and capital planning.

Labor Shortages Are Structural, Not Cyclical

The construction industry continues to face a severe labor deficit:

·Skilled trades are aging out faster than they are being replaced

·Immigration constraints limit workforce expansion

·Younger workers are entering the trades at historically low rates

Even during economic slowdowns, wage pressure does not reverse. Contractors must pay more to attract and retain crews, and those costs are passed directly into project pricing.

Bottom line: Labor is now a permanent premium in construction budgets.

Materials Have Reset to a Higher Baseline

While the extreme price spikes of 2021–2022 have eased, materials have not returned to pre-pandemic levels.

Key drivers include:

·Global supply chain restructuring (reshoring = higher costs)

·Energy-intensive manufacturing inputs

·Persistent transportation and logistics expenses

·Tariffs and geopolitical risk pricing

Concrete, steel, electrical components, and mechanical systems remain elevated—and volatility is now the norm.

Regulatory Costs Keep Rising

Construction is increasingly regulated at the local, state, and federal levels:

·More stringent energy codes

·Stormwater, environmental, and zoning compliance

·Lengthier permitting timelines

·Higher impact and utility fees

These are non-negotiable costs that increase total project expense without adding leasable square footage.

Financing Costs Amplify Total Project Pricing

Even if rates ease modestly in 2026, construction loans remain:

·More conservatively underwritten

·Shorter-term with higher contingency requirements

·Heavily focused on sponsor liquidity and experience

Interest carry, reserves, and delayed lease-up all compound total project cost—especially for speculative developments.

What This Means for Investors and Business Owners

Waiting for construction costs to fall may result in:

·Higher land prices as competition returns

·Missed entitlement and leasing windows

·Narrower spreads between new construction and existing assets

Instead, successful sponsors are:

·Locking pricing early with GMP contracts

·Pursuing value-engineered designs

·Exploring adaptive reuse and expansion over ground-up builds

·Structuring capital stacks creatively to preserve returns

Strategic Takeaway

Construction costs are not cyclical anymore—they are structural.

Projects that work today will be the ones that work tomorrow. The focus should not be on waiting for cheaper builds, but on smarter underwriting, disciplined execution, and experienced capital partners.

If you are evaluating a development, build-to-suit, or owner-occupied project, the conversation needs to start with today’s realities—not yesterday’s assumptions.

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Bill Rapp, CRE Broker

I am a Houston commercial broker, with residential experience, as well as a lending background. I have been in the real estate industry for 14 years and counting, and I have worked in many roles within the industry and each has given me a unique perspective of the industry as a whole. My dedication to clients is rooted in this industry knowledge, but also includes my desire to go the extra mile in networking to source off market opportunities for my clients. Me and my team at eXp Commercial have a cutting-edge technology package that gets the widest exposure for each transaction. eXp Commercial offers a nationwide network through which we can deliver the best exposure and professional advice to achieve our clients’ goals while also minimizing their risk. Clients appreciate my methodical method of discovery in our initial consultation. Through which we can get to know each other and their specific’s business’s needs and objectives on a granular level. Our processes help navigate each transaction and its potential pitfalls through to a successful outcome for our clients. It is my stated goal to provide our clients with extensive market analysis and expertise that fosters innovative solutions and rewarding commercial real estate opportunities.

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eXp Commercial - Viking Enterprise team real estate network provides unparalleled commercial real estate services to Tenants and Landlords around the greater Katy & Houston MSA area. Our knowledge, experience, and reputation sets us apart from many firms.