Construction planning posts smaller gains

Nonresidential construction planning lost some momentum in February after a number of months of stronger progress, in line with Dodge Building Community.

The Dodge Momentum Index, a benchmark that tracks nonresidential building planning, ticked up 0.7% in February. Not like earlier months, institutional planning, akin to hospitals and schooling, slowed total progress, falling 4.6% in February. Industrial planning, however, led by knowledge facilities, offset that decline with a 3.3% improve, in line with the report.

“Planning momentum moderated in February after just a few months of stronger progress,” mentioned Sarah Martin, affiliate director of forecasting at Dodge Building Community. “Elevated uncertainty around material prices and financial insurance policies could start to weigh on planning selections, however in the intervening time, planning exercise is essentially persevering with to maneuver ahead.”

Information facilities propped up total exercise, mentioned Martin. With out these initiatives, the DMI would have declined 2% in February, in line with Dodge.

Nevertheless, regardless of the slower tempo of planning exercise in sectors outdoors knowledge facilities, the index nonetheless sits greater on a yearly foundation. The index jumped 27% in comparison with February 2024, with industrial planning surging 43% over that interval and institutional planning rising 2%.

A lot of that yearly progress is once more because of the knowledge middle increase. With out the section, industrial planning would have elevated 12% over the previous yr — or lower than half its present progress — whereas the general DMI would have jumped simply 8%, in line with Dodge.

A complete of 26 initiatives valued at $100 million or extra entered planning in February, seven fewer than the earlier month. Main industrial initiatives included:

• The $500 million Tract knowledge middle in Chester, Virginia.
• The SAT93 and SAT94 Microsoft knowledge middle initiatives in San Antonio, Texas, every valued at $350 million.

The most important institutional initiatives to enter planning included:

• The $329 million Burlington Excessive College in Burlington, Massachusetts.
• The $300 million T-Cell Area renovation in Las Vegas.
• The $300 million North Dakota State Hospital in Jamestown, North Dakota.