➤ Key Highlights
The Dodge Momentum Index, which tracks nonresidential construction projects entering the planning stages and leads actual construction spending by a full year, slipped 1.1% in November.
Commercial planning ticked down 0.1%, a marginal drop compared to the 3.4% decrease in institutional planning over the month, according to the report.
The index sits 36% higher year-to-date than its average reading over the same period in 2024.
Compared to November 2024, the index jumped 50%, with the commercial and institutional segments up 57% and 37%, respectively.
Without the data center boom, commercial planning growth would be 36% over that same period, according to the report.
A total of 28 projects valued at $100 million or more entered planning in November, according to Dodge.
The $406 million Novva Mesa data center in Mesa, Arizona entered planning in November.
The $317 million Compass data center in Hoffman Estates, Illinois entered planning in November.
The Dodge Momentum Index slipped 1.1% in November, reflecting a slight decrease in nonresidential construction planning. Commercial planning declined 0.1%, while institutional planning saw a 3.4% decrease. Despite these drops, the index remains significantly higher compared to the previous year, driven by continued data center project activity.
The supply-side lens focuses on how shifts in project planning directly affect expectations for future construction activity and available supply. Variations in planning indices point to evolving pipeline resilience, indicating potential changes in how quickly new space or assets may come to market. This lens helps contextualize how fluctuations in planning data can signal longer-term impacts on market capacity and the ability to meet future demand. Monitoring these planning shifts is essential for understanding the flow of new supply and its timing in the construction cycle.
⚠️ Why it matters now
For CRE professionals, supply-side signals from construction planning data are crucial for anticipating future availability and potential bottlenecks in the delivery of new assets. Changes in the planning pipeline inform decisions related to development timelines, capital allocation, and construction resource planning. Understanding these signals provides a foundation for gauging future supply conditions and potential challenges in bringing new projects online.
Stop Reading Headlines
Start Understanding the Market
➤ TAKEAWAY
Ongoing monitoring of planning indices and project entries will provide further clarity on the evolving supply pipeline. Future updates may reveal whether current levels of activity are sustained or if new factors begin to influence the pace of planning. As these trends develop, stakeholders can expect continued insights into the supply-side dynamics shaping construction and delivery outcomes.
