Commercial Planning Increases 1% in April

(Illustrations courtesy of Dodge Construction Network)

The Dodge Momentum Index grew 0.9% in April to 205.1, indicating an increase in planning for commercial buildings, the Dodge Construction Network reported.

Over the month, commercial planning grew 3.3% while institutional planning fell 4.2%.

“Despite an uptick in April, the bulk of the Dodge Momentum Index growth was driven by a surge in data center planning, while momentum in other nonresidential sectors lagged behind,” noted Sarah Martin, associate director of forecasting at Dodge Construction Network. “Owners and developers are navigating heightened economic and policy uncertainty, which likely bogged down much of this month’s planning activity.” 

The report noted a wave of data center projects entering planning boosted commercial growth. Without data centers, commercial planning would have receded 2.3% in April and the entire index would have receded 3.0%. Office and hotel planning retreated sharply in April, while warehouse and retail planning modestly ticked up. On the institutional side, planning momentum waned for education, healthcare, and government buildings. This was slightly offset by an uptick in recreational projects. 

The index was up 22% in April compared to year-ago levels. The commercial segment was up 20% from April 2024, and the institutional segment was up 26%, reflecting a weak April last year. “If we remove all data center projects between 2023 and 2025, commercial planning would be down 1% from year-ago levels and the entire index would be up 7%,” the report said.