Continued stream of data center and life science lab projects keeps Index from further lows
HAMILTON, N.J. – July 11, 2023 — The Dodge Momentum Index (DMI), issued by Dodge Construction Network, declined 2.5% in June to 197.3 (2000=100) from the revised May reading of 202.4. Over the month, the commercial component of the DMI rose 3.1%, while the institutional component sunk 10.5%.
“A deceleration in institutional planning caused the Momentum Index to decrease in June,” said Sarah Martin, associate director of forecasting for Dodge Construction Network. “Project activity in this segment pulled back from the robust highs of the last three months but continued to dwarf year-ago levels. In contrast, growth in the commercial segment may be fleeting, as the continued elevation in interest rates and increasingly tight lending standards weigh down the sector in the latter half of the year.”
Commercial planning in June remained afloat alongside an uptick in data center and hotel planning projects. Institutional planning, on the other hand, was driven lower by a decrease in education and healthcare activity. Year over year, the DMI remains 25% higher than in June 2022. The commercial and institutional components were up 17% and 39% respectively.
A total of 22 projects valued at $100 million or more entered planning in June. The largest commercial projects to enter planning included the $335 million Queensbridge Collective Office Tower in Charlotte, North Carolina and the $280 million Old Potomac Church Data Center in Stafford, Virginia. Bolstering the institutional planning queue was the $710 million Medford Life Science Park project in Medford, Massachusetts and the $157 million Center of Innovation building in Emeryville, California.
The DMI is a monthly measure of the initial report for nonresidential building projects in planning, shown to lead construction spending for nonresidential buildings by a full year.
Watch Associate Director of Forecasting Sarah Martin discuss June’s DMI here.
June 2023 DODGE MOMENTUM INDEX
