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Construction planning momentum faltered in November, although developers in key sectors continue to make progress, according to the Dodge Construction Network.
The Dodge Momentum Indexwhich tracks nonresidential construction projects entering the planning stages and leads real construction spending for a full year, fell 1.1% in November. Commercial planning was down 0.1%, a marginal drop compared with the 3.4% decline in institutional planning for the month, the report said.
Despite the decline, the index stands 36% further so far than its average reading for the same period in 2024. This is largely due to data center boost and healthcare construction sectors, said Sarah Martin, associate director of forecasting for Dodge Construction Network.
“The influx of high-value data center work, coupled with inflationary cost pressures, continues to support elevated DMI levels,” Martin said in the statement. “Overall, non-residential construction is expected to strengthen in 2027, led mainly by data centers and healthcare projects.” But other non-residential sectors are more likely to do so cope with softer demand next year Martin warned last month that he expected general planning to slow on average, esp macroeconomic risks around costs continue riding
On the commercial front, planning activity weakened in November for warehouse and hotel projects. Those numbers were somewhat flat for traditional office and retail construction, the report said.
On the institutional side, which includes health and education projects, planning also slowed in most categories after strong activity in recent months, according to Dodge. However, the report noted positive momentum around religion-related construction.
Compared to November 2024, the index was up 50%, with the commercial and institutional segments up 57% and 37%, respectively. Without the data center boomthe growth of commercial planning would be 36% during this same period, according to the report.
A total of 28 projects valued at $100 million or more entered planning in November, according to Dodge. Major commercial projects include:
- Novva Mesa’s $406 million data center in Mesa, Arizona.
- The $317 million Compass data center in Hoffman Estates, Illinois.
- The Medina Technology Data Center Park in Medina, Texas.
The largest institutional projects to enter planning included:
- The $425 million Novi School renovations in Novi, Michigan.
- The relocation of the $250 million James City County Government Complex to Williamsburg, Virginia.
- The $180 million Fire and Police Administration headquarters in Mountain View, California.
