“The high cost of capital has adversely affected developers’ and owners’ ability to secure funding for private projects,” he says. The cautious environment is expected to hold into 2024 as owners and developers reevaluate their positions. 

“Throughout the Silicon Valley, the vast majority of technology office-related construction is in a holding pattern,” he explains. “That said, we are seeing work pick up relative to life sciences, which is a positive sign. Additionally, artificial intelligence has been gaining traction and may likely be a new market of growth for us in the near future.”

Contractors continue to face a host of challenges as well. “While inflation seems to have leveled off relative to construction materials and supplies, and we’re no longer contending with severe supply chain constraints, the entire Silicon Valley is continuing to face a scarcity of skilled and trained workforce and specialty workers,” Rogers says.