DMI is a monthly measure of the initial report for nonresidential building projects in planning, shown to lead construction spending for nonresidential buildings by a full year.

The Dodge Momentum Index (DMI) rose by 3% to 182.5 in September from a revised August reading of 178.0. Dodge Construction Network (DCN) officials add the institutional segment of the DMI rose by 9% in September, while the commercial component dropped by 1%.

Officials say the drop in commercial project planning resulted from weaker office planning. The institutional sector increased due to stronger education and healthcare planning activity. The DMI in September was 5% lower than in September 2022. The commercial segment was 12% below 2022 levels, while the institutional segment was up 12% over the same time period.

DMI is a monthly measure of the initial report for nonresidential building projects in planning, shown to lead construction spending for nonresidential buildings by a full year.

“Solid demand for data centers, life science labs and hospitals supported the uptick in nonresidential planning activity last month,” says Sarah Martin, DCN’s associate director of forecasting. “While month-to-month trends can be volatile, year-to-date trends show an overall decrease in commercial planning, offset by more institutional projects entering the queue. Steady planning activity should follow if financial conditions improve in early 2024.”

Twenty projects valued at $100 million or more entered planning in September. The largest commercial projects to enter planning included the $400 million Platform 16 office development in San Jose, Calif., and the $230 million Waterford Millstone Data Center in Waterford, Conn. The largest institutional projects to enter planning included the $927 million UC San Diego Research Park in San Diego and phases three and four of the Kilroy Oyster Point Life Sciences Complex in San Francisco, valued at $634 million.

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