CRE Project Planners Become More Optimistic
Dodge Momentum Index spikes 6.6% for nonresidential construction.
A return of “enthusiasm and optimism” in prospects for nonresidential growth helped commercial and institutional planning end the year on a positive note, according to the Dodge Momentum Index, issued by Dodge Construction Network.
DMI improved by 6.6% in December to 222 from the revised November reading of 208.3, raised from 207.2.
Commercial spiked by 8.4% and the institutional grew by 2.7%.
Richard Branch, chief economist for Dodge Construction Network, said in prepared remarks that while some of that will likely erode in 2023 as economic growth wanes, “increased demand for building types such as data centers, labs, and healthcare buildings will provide a solid floor for the construction sector.”
On a year-over-year basis, the DMI was 40% higher than in December 2021; the commercial component was up 51%, and institutional planning was 20% higher.
N.Va. Data Center Top Commercial Project in December
A total of 15 projects with a value of $100 million or more entered planning in December.
The leading commercial projects planned for December included a $500 million Vantage Data Center in Sterling, Va.; and a $183 million mixed-use building in Chicago.
The leading institutional projects comprised of the $400 million Acute Neuropsychiatric Hospital in Los Angeles and a $185 million life sciences building in Philadelphia.