Construction planning snaps growth streak

Nonresidential construction planning activity fell in March, reversing current features made to begin the yr, based on Dodge Development Community.

The Dodge Momentum Index, a benchmark that tracks nonresidential development planning, tumbled 6.9% in March, as the specter of tariffs and broader uncertainty stymied challenge projections.

Industrial planning dropped 7.8% as a result of slower exercise in warehouse, information facilities and retail tasks. Institutional planning, akin to schooling, life sciences and healthcare tasks, fell 5%, based on the report.

Hesitancy round how materials costs would development forward of President Donald Trump’s April 2 tariffs probably contributed to the slowdown in future planning. The Trump administration tariffs have fueled considerations within the development business about rising supplies prices and potential project cancellations.

“Elevated uncertainty round materials costs and financial insurance policies could have begun to issue into planning selections all through March,” mentioned Sarah Martin, affiliate director of forecasting at Dodge Development Community. “Whereas planning information has weakened throughout most nonresidential sectors this month, exercise stays significantly larger than year-ago ranges and nonetheless suggests regular development exercise in mid-2026.”

Momentum round information middle planning, one of the vital vital drivers of development in current months, slowed over the month. For instance, Microsoft, one of many largest data center builders, not too long ago introduced it’s slowing or pausing some early-stage information middle tasks, together with a $1 billion build in Ohio, based on The Related Press.

Trump’s tariffs may additionally additional pressure future data center investment if costs proceed to rise and provide chain constraints worsen. That might doubtlessly result in additional delays in tasks.

However information middle planning nonetheless sits at traditionally excessive ranges, based on Dodge. Even with the month’s slowdown, this single constructing kind continues to considerably prop up total planning figures.

The Dodge Momentum Index jumped 30% yr over yr, with business planning up 32% and institutional planning up 27%, based on the information.

With out information middle tasks, nonetheless, business planning would have elevated simply 4% in comparison with March 2024, whereas the general DMI would have climbed solely 12%, based on Dodge.

A complete of 25 tasks valued at $100 million or extra entered planning all through March. Main business tasks included:

• The $400 million Logistics Land Investments information middle in Bessemer, Alabama.
• The $340 million enlargement to the Ontario Conference Middle and Resort in Ontario, California.
• The $300 million Venture Cinco information middle in Natalia, Texas.

The most important institutional tasks to enter planning included:

• The $500 million ambulatory care constructing at Scripps San Marcos Medical Middle in San Marcos, California.
• The $165 million Roanoke Excessive College in Roanoke, Virginia.
• The $135 million Milken Neighborhood College enlargement in Los Angeles.