Dodge Momentum Index Drops

(Courtesy Dodge Construction Network, Hamilton, N.J.)

The Dodge Momentum Index of commercial building projects in the planning stage slipped 8.6% in March to 183.7, reported Dodge Data and Analytics, Hamilton, N.J.

The index’s commercial component fell 6.6% and the institutional component decreased 12.9%.

Sarah Martin, Associate Director of Forecasting for Dodge Construction Network, said the index will likely “work its way back to historical norms throughout 2023, concurrent with weaker economic conditions. Lending standards for small banks in particular have substantially tightened as banking insecurity intensifies. As a result, owners and developers are more likely to pullback in the short-term, which would further contract the DMI as we continue into the year.”

The report said commercial planning in March was driven down by fewer projects in the office and warehouse sectors, decreasing 29% and 11%, respectively. On the upside, a steady flow of research and development laboratories entered the queue, supporting the otherwise weakening sector. Year over year, the Dodge Momentum Index remains 24% higher than in March 2022. The commercial component was up 37% and the institutional component was 2% higher.

Dodge said 18 projects with a value of $100 million or more entered planning in March. The leading commercial projects included a $300 million office building in Chicago and the $215 million 58 Logistics Center Industrial Park warehouse project in Bakersfield, Calif.