Nonresidential construction planning rebounded in May after a slow April, as a sharp uptick in institutional project activity helped drive overall growth, according to Dodge Construction Network.
The Dodge Momentum Index, a benchmark that tracks nonresidential construction planning and leads actual spending by a full year, increased 3.7% in May. Institutional planning surged 10.5%, led by education and recreational facilities, while commercial planning inched up 0.8%, according to the report.
“Nonresidential planning continued to accelerate in May, primarily driven by strong project activity on the institutional side of the DMI,” said Sarah Martin, associate director of forecasting at Dodge Construction Network. “Planning momentum moderately improved on the commercial side as well, following subdued growth in that sector over the last few months.”
Data center planning, which fueled most commercial gains, returned to more typical levels in May, according to Dodge. Martin added that “increased economic and policy uncertainty” will likely persist in the near term, though said the current pipeline remains stable.
Within the commercial sector, stronger activity in warehouse and hotel planning helped offset the slow pace in the office and retail categories, according to the report. On the institutional side, a surge in education and recreation projects led the gains, though healthcare planning dipped slightly.
Nevertheless, planning activity remains far ahead of last year’s pace, according to Dodge.
The index jumped 24% compared to May 2024, with institutional planning up 47% and commercial planning up 15%. However, if the data excludes all data center projects between 2023 and 2025, commercial planning would have grown 4% over the year, and the total DMI would be up 17%, according to Dodge.
A total of 33 projects valued at $100 million or more entered planning in May. Major commercial projects included:
- The $486 million Evolve Energy Partners data center in Warrenton, Missouri.
- The $366 million LEGO warehouse and distribution facility in Prince George, Virginia.
- The $330 million Summit Crossing data center in Fredericksburg, Virginia.
The largest institutional projects to enter planning included:
- The $500 million Honda Center renovation in Anaheim, California.
- The $238 million phase 2 of the Sterling Bay Pacific Center research and development building in San Diego, California.
- The $201 million patient tower at Berkeley Medical Center in Martinsburg, West Virginia.
