New Jersey’s commercial construction sector is entering a period of exceptional opportunity. The NJ Alliance for Action (NJAA) projects a staggering $57.6 billion in building-related spending across 2025 and 2026, marking a 5.17% increase over the previous forecast NJBIA. This includes approximately $29.7 billion in 2025 and $28 billion in 2026 NJBIA. At the same time, the Associated Construction Contractors of New Jersey (ACCNJ) reports a 6% increase in total construction spending in 2024, with construction starts up 33% — far outpacing a 19% national decline Insider NJ Construction Owners.

Key Investment Areas Driving the Surge

A diverse array of sectors is catalyzing this momentum:

  • Utilities infrastructure — nearly $15.5 billion in water, sewer, gas, and electric capital projects

  • Healthcare — about $4.4 billion in hospital expansions and renovations

  • State-backed projects — $5.6 billion via the NJEDA

  • Port and transit infrastructure — $4.2 billion through the Port Authority of NY & NJ

  • Education — $1 billion in new school construction via the NJ Schools Development Authority

  • Highways and bridges — $2.2 billion in NJDOT improvements and $3.1 billion by NJ Turnpike Authority NJBIA

Mega-Projects Making Ground

The state’s skyline and infrastructure are being transformed by several landmark projects:

  • Portal North Bridge — Halfway complete, with the first track slated to open in March 2026

  • Raritan River Bridge — Replacement underway, promising improved reliability for the North Jersey Coast Line i

  • Essex Hudson Greenway — A nine-mile linear park is rising, with portions set to debut by late 2025

  • Helix innovation campus in New Brunswick — A $650 million mixed-use high-rise project, set for completion of the first phase in 2025

  • One Journal Square in Jersey City — A twin-tower marvel, topped out in 2024, with full completion expected by 2026

  • Entertainment/Film hubs — Netflix is launching a $1 billion production campus at Fort Monmouth, while Lionsgate is developing a $125 million studio in Newark

Challenges to Watch

No growth comes without hurdles. Tariffs on steel, aluminum, and other building materials are inflating costs across the value chain. In one Newark project, steel costs have surged 8–10%, adding nearly $2 million to budgets Business Insider. As a result, many developers are adopting conservative timelines or delaying projects amid uncertainty over future tariffs Business Insider.

Simultaneously, the industrial real estate market is experiencing rising vacancies. In northern New Jersey, vacancy rates reached 6% by end-2024, up from 4.7% at end-2023, due in part to nearly 12 million square feet of new inventory — much delivered vacant Real Estate NJ. However, with fewer planned deliveries after 2025, the sector may stabilize Real Estate NJ.

Forecast Summary Table

Factor Outlook
Total Spend $29.7B (2025), $28B (2026) — record highs predicted
Growth Drivers Utilities, healthcare, state-backed, transportation
Mega Projects Portal North Bridge, Helix, One Journal Square, film hubs
Cost Pressures Tariffs causing material cost increases
Market Dynamics Industrial segment facing vacancy headwinds

What This Means for Plescia Construction & Development

As one of New Jersey’s trusted builders and developers, Plescia stands at the pulse of opportunity:

  1. Leverage Infrastructure Momentum
    Projects like Portal North Bridge, Raritan River Bridge, and the Essex Hudson Greenway offer prime opportunities for involvement across trades—from structural to civil works.

  2. Capitalize on Growth in Innovation & Media
    The Helix campus in New Brunswick and film production campuses in Fort Monmouth and Newark spotlight emerging sectors with substantial budgets and long-term potential.

  3. Navigate Cost Pressures Strategically
    With tariffs still affecting materials pricing, building financial resilience—like negotiating fixed-cost contracts or securing early material procurement—will be key to project profitability.

  4. Monitor Industrial Real Estate Trends
    Rising industrial vacancies suggest caution. Prioritize quality over volume—target tenant-ready, flexible industrial spaces aligned with logistics and distribution demand to ensure occupancy.

Conclusion

New Jersey’s commercial construction sector is in a robust growth phase, with record spending, mega-scale projects, and diverse sector engagement. Despite cost headwinds and market shifts, the outlook through 2026 remains bullish.

For Plescia Construction & Development, this is a time to boldly lead, strategically navigate, and innovate—cementing its role in shaping New Jersey’s commercial future.

– Craig Plescia, CEO
Plescia Construction & Development