Following weather-induced declines in February and March, the Dodge Momentum Index is ascending, according to McGraw Hill Construction.
The index, which is a monthly measure of the first report for nonresidential building projects in planning, gained 2 percent in May to 125.2 after a strong rebound in April and is now 17.6 percent higher than a year earlier.
According to the report, “The growing volume of commercial and institutional projects at the planning stage and strengthening market fundamentals such as occupancy rates and rents suggest that nonresidential construction starts should be headed higher over the remainder of the year.”
The May index was bolstered by a 4.5 percent monthly gain in commercial planning projects, though it was held in check by a 1.3 percent decline in institutional plans.
Among the largest commercial projects to enter planning in May were the $500 million Rainier Square Mixed Use tower in Seattle, a $200 million commercial warehouse at Goodman Commerce Center in Eastvale, Calif., and a $100 million office building for Overstock.com in Midvale, Utah.
On the institutional side of the index, the largest projects added over the month included a $200 million addition and modernization for Mount Sinai Medical Center in Queens, N.Y., and the new $145 million St. Clair Commons Health/Quality of Life Campus in St. Clairsville, Ohio.