The Town Lake Company

Heath Hans

Construction Delivery Authority

Heath Hans is Director of Construction at The Town Lake Company, where he oversees construction strategy and project delivery across the company’s Benchmark Business Parks portfolio. With more than 25 years of experience in architecture, real estate development and project management, he has led a wide range of commercial, multifamily and large-scale development projects in different regions of the United States.

Over the course of my career, I have worked in architecture, real estate development and project management, allowing me to experience the construction industry from several different perspectives. One lesson that has remained consistent is that success often depends on how well organizations adapt to changing market conditions.

I began my career as an architect after graduating from the University of Oklahoma and spent several years working with large firms before moving into real estate development. In 2006, I moved into development and started working on high-rise condominium projects in Tampa, Florida. However, the 2008 recession created major challenges, and two of those projects eventually became bank-owned. That experience gave me firsthand insight into how market conditions can affect projects, even when the original plans are strong.

Later, I joined JLL’s Project and Development Services group, where I worked as a vice president and supported clients as an owner’s representative. During that time, I helped deliver projects across different sectors, including a USD 500 million mixed-use development, higher education facilities, a corporate headquarters, an arena project and a multifamily development. Those experiences gave me a broader understanding of how financing, design, construction and market conditions shape project outcomes.

Today’s construction environment continues to present serious challenges. Material costs remain high, labor availability continues to affect many markets and financing has become more difficult for developers. Construction costs have not declined enough to balance out tighter capital markets. Rental growth in many sectors has also remained relatively flat. As a result, many projects that could have moved forward a few years ago are now facing major financial hurdles.

Global conditions, supply chain pressures, transportation costs and workforce availability continue to affect project budgets and schedules. Change is nothing new in construction, but current conditions are making project decisions more difficult than they were a few years ago.

Creating Value Through Strategic Partnerships and Cost Management

At The Town Lake Company, one of my primary responsibilities is overseeing construction for Benchmark Business Parks. These flex industrial developments combine Class A office space with smaller warehouse units, creating a practical option for businesses that do not require large-scale industrial facilities.

Investor interest in the flex industrial sector is strong. While other real estate segments have faced challenges, this model continues to perform because construction costs, rental rates and market demand are better aligned. The product provides a middle ground between smaller industrial spaces and large warehouse facilities, creating value for both businesses and investors.

Stakeholder alignment is essential in that process. Developers, investors, architects, contractors and consultants often have different priorities, but successful projects depend on bringing those interests together around a common objective. Achieving that alignment requires consistent communication, early planning and a willingness to collaborate throughout the life of a project.

One area we have focused on is procurement. We are also establishing national vendor agreements for products such as appliances, plumbing fixtures and flooring materials. These partnerships help us secure better pricing and maintain consistency throughout our developments. We have also started contracting directly with certain site contractors on some projects. That has helped reduce costs and avoid some of the markups associated with larger contract structures.

By contracting directly with site contractors, we have been able to save approximately 10 percent to 15 percent on USD 2 million to USD 3 million of site work per project. Those savings have become one of the factors helping our developments move forward in the current market.

For construction leaders today, cost management is no longer simply about controlling expenses. It is about finding smarter ways to structure projects, strengthen partnerships and improve decision-making throughout the development process.

Preparing for an AI-Enabled Future

While market conditions remain a major focus, technology is becoming one of the most important topics shaping the future of construction.

At The Town Lake Company, we have been exploring how AI can support our teams and improve operational efficiency across all aspects of our company. I do not believe AI will replace large portions of the construction workforce. Instead, I see it as a tool that can help professionals make better decisions earlier in the project lifecycle. One area with significant potential is design and preconstruction planning. For years, designers and engineers developed solutions before contractors got involved in cost evaluation. AI could change that process by helping teams evaluate different materials, construction methods and structural options earlier in the design stage.

For example, when evaluating structural systems for a high-rise building, teams may compare options such as a two-way post-tension system, a waffle slab or a post-andbeam system. With AI, designers could review real material quantities and cost information while making those decisions instead of waiting until later stages for pricing feedback.

This could reduce redesign efforts, improve cost prediction and help teams deliver projects faster. From an owner’s perspective, faster delivery has a direct financial impact because it can reduce interest, debt service and financing pressure while allowing the project to generate revenue sooner.

Moving forward, construction leaders must remain open to these changes. Many experienced professionals are still cautious about AI because it is new, but education and willingness to learn will play an important role in successful adoption.

The most valuable advice I can offer construction professionals is to embrace continuous learning. Every generation faces new challenges, and today’s leaders are navigating major technological changes. Those who understand emerging tools and apply them thoughtfully will be better positioned to lead teams and deliver successful projects.

Technology may change how projects are delivered, but the fundamentals of good construction remain the same.