Signs of life are returning to planning desks across the country, as momentum builds behind large-scale projects and complex builds, according to Dodge Construction Network.
The Dodge Momentum Index, which tracks nonresidential projects entering the planning stage and leads actual spending by a full year, jumped 6.8% in June. Commercial planning climbed 7.3%, while institutional planning increased 5.7%, according to the report.
“Nonresidential planning steadily improved in June, alongside strength in warehouse, recreational, and data center planning,” said Sarah Martin, associate director of forecasting at Dodge Construction Network. “Planning momentum in other key sectors, like education, hotels, and retail stores, was more subdued.”
Slower activity in those sectors is likely tied to caution around the economic outlook, said Martin. Weaker consumer spending expectations and uncertainty over project financing have caused developers to tap the brakes on new entries in those categories, she added.
For example, a Pittsfield, Massachusetts-based construction company recently laid off nearly half of its workers due to delays on two major construction contracts. Yale University, among other higher education institutions, also paused 10 construction projects due to uncertainty around federal funding.
Warehouse activity gained meaningful traction in June, and data center planning remained elevated, according to the report. On the institutional side, large recreational projects helped drive gains, while healthcare-related planning also continued to accelerate, according to Dodge.
Despite some sector slowdowns, planning activity remains far above last year’s weak June levels. The overall index jumped 20% year over year, with institutional planning up 46% and commercial planning up 11%.
Even excluding all data center projects from 2023 through 2025, commercial planning would still be up 12% over the past year, and the overall index would have increased 23%, according to Dodge.
A total of 40 projects valued at $100 million or more entered the planning phase in June, according to Dodge. Major commercial projects included:
- The $500 million Meadow Brook Technology Park data center campus in Middletown, Virginia.
- Phase 3 of the $300 million Project Blue data center in Tucson, Arizona.
- The $300 million Data City data center in Laredo, Texas.
The largest institutional projects to enter planning included:
- The $340 million Cleveland Clinic Avon campus expansion in Avon, Ohio.
- The $150 million McKinney Amphitheatre Building in McKinney, Texas.
- The $135 million Harold Simmons West Overlook Park Buildings in Dallas.
