Seattle Construction Costs Rise, Bidding Remains Competitive

Non-residential construction conditions in the Seattle area remained broadly stable through the first half of 2026, though cost pressures varied significantly by market, trade and project type.

According to a recent report by Mortenson, mega-project investments remain the strongest source of upward pressure, while softer demand across portions of the commercial and institutional market continues to create competitive bidding opportunities as trade partners actively pursue available work.

Seattle continues to see strong interest from trade partners and competitive bidding, with some firms absorbing market increases or reducing fees to secure work. Despite this competitive environment, pricing increased across several mechanical and specialty scopes this quarter, including plumbing, HVAC and fire protection, contributing to a +1.71% overall quarterly increase.

Non-residential construction costs tracked by Mortenson increased 1.71% in Seattle during the quarter and 3.48% over the past twelve months. Nationally, costs increased 1.58% during the quarter and 5.60% over the past twelve months.

Inside The Story

Mortenson

About Jasmine Kilman

Jasmine Kilman is Content Director of Connect Commercial Real Estate, covering Chicago and greater Chicagoland, the Midwest, Seattle, and the Pacific Northwest. She covers industry trends, transaction deals, market research, and produces daily news stories. With experience in marketing and communications for academic nonprofits and corporate clients, including Hearst Media, Hilton, and Coldwell Banker, Kilman has written about commercial real estate, environmental, social, and corporate governance (ESG), technology, healthcare, and philanthropy. She was born and raised in California and graduated with a degree in public relations. In her spare time, Kilman enjoys hiking and traveling to new locations with her family.

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