Dodge Momentum Index continues to climb

The Dodge Momentum Index, a monthly measure of the first report for nonresidential building projects in planning, rose 3 percent in January from the previous month, according to McGraw Hill Construction.

The Momentum Index has been on a steady climb for more than a year, with the exception of slight declines in June and October. January’s relatively strong gain brought the Momentum Index to 121.1, compared with a revised 117.6 in December 2013.

As the environment for new nonresidential development continues to improve, the planning pipeline of nonresidential building projects has grown more active.

The commercial building segment was the driving force behind January’s increase, whereas plans for institutional building held steady with December. Commercial building plans gained 5.7 percent, largely the result of increased planning activity for office and hotel development.

The largest commercial projects to enter the planning pipeline in January were all located in California and include a $275 million St. Regis Hotel in Napa, a $200 million Renaissance Hotel at LA Live in Los Angeles and a $120 million mixed-use development in Mountain View. Several large projects, including expansion plans for the San Ysidro Border Station in San Diego, helped boost January’s stability for institutional building.