Report: More good growth for commercial, institutional projects

The Dodge Momentum Index, issued by Dodge Construction Network, increased 3.8 percent in November to 207.2.

The momentum index, a monthly measure of the initial report for nonresidential building projects in planning, was up from a revised October reading of 199.6.

Dodge says the momentum index continued its steady ascent in November, with the commercial component rising 4.3 percent and the institutional component ticking up 2.7 percent.

Commercial planning experienced a healthy increase in hotel and data center projects and modest growth in stores and office projects, the firm says. While education and health care projects slowed in November, the institutional component remained net positive alongside a robust increase in planning projects for government administrative buildings and religious facilities.

The momentum index is now 25 percent higher than it was in November 2021. The commercial component is up 28 percent in that time, and institutional planning is up 21 percent.

Specific projects

According to Dodge, 21 projects with a value of $100 million or more entered planning in November.

The leading commercial projects were two $500 million segments of a Facebook data center in Sandston, Virginia, and the $400 million Sunset Industrial Park warehouse in Sunset Park, New York.

The leading institutional projects were the $185 million Hollywood Casino relocation in Joliet, Illinois, and the $160 million Smith County courthouse in Tyler, Texas.

“The momentum index continued to rise in November, conveying hopefulness from owners and developers that the construction sector will endure the possible economic slowdown next year,” says Sarah Martin, senior economist at Dodge Construction Network. “The rate of increase in the [momentum index], however, has steadied over the month. Labor and supply shortages, high material costs and high interest rates could temper planning activity over the next 12 months to a more modest pace.”