2025 Fall Preview: Derek Kohl, BL Companies, Inc.

What trends or shifts do you see shaping your industry this fall and into 2026? We’re starting to see renewed optimism across the development community as interest rates begin to ease. Lower borrowing costs are restoring confidence and encouraging projects that had been paused or scaled back. There are still a lot of mixed signals about the broader economy out there, but this is a welcome development that is helping to move key projects forward heading into 2026.

What challenges or opportunities do you anticipate for your clients as the market heads into Q4? Inflation continues to weigh heavily on construction costs, and the price of real estate in many New England markets remains high. Together, those factors have made project feasibility tougher to achieve. On top of that, the regulatory and permitting environment in the Northeast remains complex, often creating uncertainty about what can actually be approved. Our clients are navigating those hurdles by doing deeper due diligence and engaging early with municipalities to help projects move efficiently.

What are you most excited about for the future of your sector? I’m encouraged by how adaptable both developers and design professionals have become in this changing market. For instance, clients are rethinking project mixes to meet evolving needs. They might be adding residential components to commercial sites or repurposing underused properties. That creativity is driving a more balanced, resilient development landscape. As an employee-owned firm, BL Companies thrives on collaboration and agility, and we’re excited to keep finding new ways to help clients succeed.