Dive Brief:
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The Dodge Momentum Index edged up 0.5% to 126.1, up from its revised January number of 125.5. February's rise — the third consecutive month with a recorded rise in the Index — was due to a small 1.0% uptick in commercial, making up for a 0.1% decline in institutional.
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Dodge found that commercial planning had less activity than was seen through most of 2015, but noted that commercial has still managed to recover slightly after a late-2015 decline.
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Even though it experienced a slowdown in February, institutional planning continues to outpace last year’s figures because of 2015’s overall upward movement in the category.
Dive Insight:
The Momentum Index is a monthly measure of initial reports of nonresidential building projects in planning, which usually lead nonresidential construction spending by one year.
In February, seven projects of more than $100 million in value entered the planning stages, according to Dodge Data.
Among the large commercial projects entering planning in February were a $190 million office renovation in New York City, a $140 million hotel and casino in Gulfport, MS, and a $129 million mixed-use project in Long Island City, NY. Entering the planning stage in the institutional sector were a $500 million medical complex in Indianapolis and a $180 million hospital in Valhalla, NY.
In commercial real estate firm JLL’s latest Construction Outlook report, the company predicted a slowdown in construction starts compared to last year but said they will still beat the overall economy because of movement in hot markets. JLL also called industrial "the shining star" of nonresidential construction, citing its gains and 178.4 million square feet delivered last year.
