Commercial Real Estate Planning Declines in June

(Illustration: SevenStorm JUHASZIMRUS via pexels)

The Dodge Momentum Index fell 1.9% in June as commercial planning declined 6.8% and institutional planning momentum grew 10.9%.  

The report from the Dodge Construction Network, Boston, tracks the three-month moving value of nonresidential building projects going into the planning stage, which leads construction spending by 12 to 18 months.  

“Despite June’s pullback, nonresidential planning remains on solid ground,” noted Sarah Martin, director of economic research at Dodge Construction Network. “Data center activity continued to drive the index, but its pace moderated from the extraordinary levels seen in recent months and drove the DMI to pull back over the month. Otherwise, planning activity accelerated across nearly every other sector.” 

Within the index’s commercial portion, slowing data center planning momentum drove the decline. Planning activity for traditional office buildings, warehouses, retail stores and hotels improved.

A total of 59 projects valued at $100 million or more entered planning throughout June. The largest commercial projects included the $500 million Stak Energy AI Data Center Campus in Prudhoe Bay, Alaska, the $480 million Project Swan Data Center Complex in Lakeland, Fla. and the $456.8 million Parcel A Data Center in Manassas, Va.