Why Wisconsin is a Hotspot for Commercial Construction in 2025 and Beyond

As we move through 2025, Wisconsin continues to emerge as a national leader in commercial construction. From robust infrastructure investments to a thriving industrial sector and a forward-thinking workforce strategy, the Badger State is proving to be a magnet for developers, contractors, and investors alike. At Daniels Construction, we’re proud to be part of this momentum, and would like to share what we’ve seen this year that makes Wisconsin such a compelling place to build right now and in the future.

Infrastructure Investment is Fueling Growth

One of the most significant drivers of commercial construction in Wisconsin is the state’s historic investment in infrastructure. Governor Tony Evers’ administration has committed over $4.1 billion in capital improvements, targeting roads, public buildings, and utilities. This initiative is expected to generate more than $7 billion in economic activity and support approximately 37,000 jobs statewide.

Additionally, federal funding through the Infrastructure Investment and Jobs Act (IIJA) is bolstering local projects, including public transit upgrades and water treatment facilities. These improvements not only enhance quality of life but also create fertile ground for commercial development in both urban and rural areas.

Daniels Construction was honored to contribute to one of these projects here in Madison, which consisted of upgrades to Well 15 to address issues with PFAS, commonly referred to as “forever chemicals”. This project re-opened the well after six years, which at its peak supplied over 1 billion gallons of water per year to the Madison metro area.

The significance of this project was underscored by a special visit from Governor Tony Evers and Mayor Satya Rhodes-Conway, who toured the facility and celebrated this step forward for Wisconsin’s water quality and infrastructure.

Booming Industrial and Logistics Sectors

Wisconsin’s strategic location in the Midwest, combined with its strong manufacturing heritage, makes it a prime hub for industrial and logistics development. The rise of e-commerce has accelerated demand for distribution centers and warehouses, particularly in cities like Milwaukee, Madison, and Green Bay. These areas are seeing a surge in construction activity as companies seek to streamline supply chains and reduce delivery times.

According to Associated Builders and Contractors, Wisconsin was ranked the #1 state for construction based on policies and programs that better career pathways in construction, further workforce development and strengthen fair and open competition on taxpayer-funded construction projects. These conditions appeal to both business owners and employees alike, opening doors for continued growth.

Commercial Real Estate is Rebounding

After a period of uncertainty in 2024, Wisconsin’s commercial real estate (CRE) market is stabilizing and showing signs of  renewed strength. Office vacancies are leveling off as companies adjust to hybrid work models, while retail occupancy remains strong, supported by steady consumer spending and limited new construction.

Additionally, multifamily and mixed-use developments are thriving in urban centers like Madison and Milwaukee, where demand for modern, amenity-rich housing continues to grow. These trends are creating new opportunities for commercial builders to support evolving community needs.

Technology and Workforce Development Are Advancing

Wisconsin is also investing in the future of construction through technology and workforce development. The state has been designated a U.S. Regional Tech Hub, unlocking $49 million in federal funding to support innovation in biohealth and personalized medicine.

Microsoft’s $1 billion expansion in Mount Pleasant which includes an AI co-innovation lab, is another sign of the state’s tech-forward trajectory. 

A rendering of Microsoft's data center in Mount Pleasant

On the workforce side, Wisconsin is addressing the skilled labor shortage head-on. With over 40% of the construction workforce expected to retire in the next decade, the state is doubling down on career and technical education, apprenticeships, and upskilling programs. These efforts are helping to attract younger workers and ensure a steady pipeline of talent for the industry.

A Business-Friendly Climate

Finally, Wisconsin’s economic development policies are making it easier for businesses to invest and grow. The Wisconsin Economic Development Association (WEDA) is advocating for modernized tax increment financing (TIF) laws, streamlined permitting processes, and the creation of a statewide “deal closing fund” to attract major projects.

These initiatives, combined with a relatively low cost of living and high quality of life, make Wisconsin an attractive destination for companies looking to expand their footprint.

Final Thoughts

At Daniels Construction, we believe that Wisconsin’s commercial construction boom is just getting started. With strong public and private investment, a skilled and growing workforce, and a commitment to innovation, the state is well-positioned to lead the way in 2025 and beyond.

Whether you’re planning a new facility, expanding your operations, or exploring opportunities in emerging markets, there’s never been a better time to build in Wisconsin. Let’s shape the future—together.

Daniels Construction

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Why Wisconsin is a Hotspot for Commercial Construction in 2025 and Beyond

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About Daniels

Daniels Construction is a full-service general contractor based in Madison, Wisconsin specializing in commercial construction, including new builds, renovations, and historic restorations. For more than 70 years, we’ve helped clients throughout Southern Wisconsin realize their visions by delivering quality results across industries. Contact us today to talk about your project.

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