Leading Index for Commercial Real Estate Increased 1% in April
From Dodge Data Analytics: Dodge Momentum Index Increases 1% in April The Dodge Momentum Index (DMI), issued by Dodge Construction Network, grew 0.9% in April to 205.1 (2000=100) from the downwardly revised March reading of 203.1. Over the month, commercial planning grew 3.3% while institutional planning fell 4.2%. “Despite an uptick in April, the bulk of the DMI’s growth was driven by a surge in data center planning, while momentum in other nonresidential sectors lagged behind,” stated 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.” A wave of data center projects entering planning played a key role in boosting commercial growth. Without data centers, commercial planning would have receded 2.3% in April and the entire DMI would have receded 3.0%. Office and hotel planning saw a sharp retreat this month, 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 DMI is a monthly measure of the value of nonresidential building projects going into planning, shown to lead construction spending for nonresidential buildings by a full year. emphasis added Click on graph for larger image. This graph shows the Dodge Momentum Index since 2002. The index was at 205.1 in April, up from 220.9 the previous month. According to Dodge, this index leads "construction spending for nonresidential buildings by a full year". This index suggests a pickup in mid-2025, however, uncertainty might impact these projects. Commercial construction is typically a lagging economic indicator.
From Dodge Data Analytics: Dodge Momentum Index Increases 1% in April
Click on graph for larger image.
This graph shows the Dodge Momentum Index since 2002. The index was at 205.1 in April, up from 220.9 the previous month.
According to Dodge, this index leads "construction spending for nonresidential buildings by a full year". This index suggests a pickup in mid-2025, however, uncertainty might impact these projects.
The Dodge Momentum Index (DMI), issued by Dodge Construction Network, grew 0.9% in April to 205.1 (2000=100) from the downwardly revised March reading of 203.1. Over the month, commercial planning grew 3.3% while institutional planning fell 4.2%.
“Despite an uptick in April, the bulk of the DMI’s growth was driven by a surge in data center planning, while momentum in other nonresidential sectors lagged behind,” stated 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.”
A wave of data center projects entering planning played a key role in boosting commercial growth. Without data centers, commercial planning would have receded 2.3% in April and the entire DMI would have receded 3.0%. Office and hotel planning saw a sharp retreat this month, 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 DMI is a monthly measure of the value of nonresidential building projects going into planning, shown to lead construction spending for nonresidential buildings by a full year.
emphasis added
Click on graph for larger image.This graph shows the Dodge Momentum Index since 2002. The index was at 205.1 in April, up from 220.9 the previous month.
According to Dodge, this index leads "construction spending for nonresidential buildings by a full year". This index suggests a pickup in mid-2025, however, uncertainty might impact these projects.
Commercial construction is typically a lagging economic indicator.
