Index reflects promise for nonresidential building

By |  October 7, 2013

The Dodge Momentum Index measuring the first report for nonresidential building projects in planning advanced 2.9 percent in September to 118.3, according to McGraw-Hill Construction.

After a brief pause in June, the momentum index resumed its upward trend in the most recent three months. According to McGraw Hill Construction, the momentum index reached its highest level since the first quarter of 2009. McGraw-Hill Construction also suggests that, as of September, owners and developers viewed the environment for construction as improving.

Demand for new commercial buildings rose over the month, boosted by recovering market fundamentals such as rents and occupancy rates. The commercial component of the momentum index jumped 8.5 percent in September thanks to increased plans for new office development.

Among the larger commercial projects to enter the planning phase in September were a $150 million headquarters for Daimler in Portland Ore.; a $150-million, 53-story office tower in Chicago; and a $65-million office building for Public Service Electric and Gas Co. in Newark, N.J.

The institutional segment of the momentum index retreated 2.5 percent in September, as a gain for healthcare projects was offset by a larger decline in plans for amusement and education buildings.

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Kevin Yanik is editor-in-chief of Pit & Quarry. He can be reached at 216-706-3724 or

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