2026 Mid-Year Review: Nathan Turner, Margulies Perruzzi

What projects, initiatives, or types of work have been keeping your team busiest during the first half of 2026?
We have been seeing a mixture of project types from both existing and new clients that need our help moving a design idea forward. Unlike in 2025, when we saw more conservative approaches and overall budget constraints, teams are now showing a greater willingness to invest their capital.

Clients have come to us looking to address various needs by either enhancing their current spaces or maximizing the potential of their assets for alternative outcomes. The design tasks have ranged from sustainability-oriented upgrades and workflow improvements to space modifications and even some expansion or new construction projects.

The driving factor for client outreach seems to be the desire to increase revenue streams or enhance efficiency to lower operational costs. All of these projects require some level of design support to ensure effective planning for cost modeling and decision-making.

What trends or shifts have stood out most to you so far this year within your industry?
The adoption of AI is a common topic in conversations within the AEC community as people share how they are using it. AI is evolving fast, and it’s not just related to the speed of work output but also to the quality of the deliverables being created.

We are currently observing a phenomenon related to replacing versus enhancing workflows. The ongoing conversation about automation versus customization is likely to impact creative outcomes.

In terms of industry shifts, recent changes show that clients are increasingly taking charge of discussions regarding domestic versus imported materials. With heightened demands on project schedules and delivery, clients recognize that making informed decisions about material sourcing early on can help alleviate potential issues during construction when it’s too late to make changes.

What challenges or opportunities have had the biggest impact on your business during the first half of 2026
Challenges have included ensuring our clients understand the impacts of recent regulatory changes. Over the past year, there have been updates to building codes, along with zoning and procedural changes that vary by jurisdiction.

On the positive side, we are noticing that clients are revisiting projects that were previously unfeasible. They are now inquiring whether any of the regulatory changes or shifts in market conditions have improved the viability of these projects.

As we look ahead to the second half of the year, what are you watching most closely?
The effects of material pricing. To date, the local real estate and AEC community has dealt with a variety of unfavorable market conditions.

At a national level, there is a boom in IT-oriented infrastructure, driven by the use of AI and the creation of data centers. As a result, the demand for materials remains high, and the overall supply and demand ratios have not changed significantly.

As we move into the second half of the year, we will gain more insight into the policies of the new Federal Reserve Chair, the impact of global tensions, and the outcomes of the mid-term elections. The positive news in all of this is that there seems to be some pent-up demand in the market, and an eagerness across various sectors to do something about it.