NEW YORK – September 8, 2015 – The Dodge Momentum Index
increased to 128.3 (2000=100) in August, up 2.8% from its July reading of
124.8, according to Dodge Data & Analytics. The Momentum Index is a monthly
measure of the first (or initial) report for nonresidential building projects
in planning, which have been shown to lead construction spending for
nonresidential buildings by a full year. Planning data continues to trend
higher following a weak start to the year, in response to improving economic
data and real estate market fundamentals, which bodes well for construction
spending through the first half of 2016. The August gain for the Momentum Index
was due to a strong increase in new plans for commercial buildings, up 8.4%
from July, while the institutional building sector contracted 5.2% following a
surge of planning activity in July. On a year-over-year basis commercial
planning is 20.6% higher, while institutional planning is up 5.1%.
There were a total of ten projects entering planning in
August with a value that exceeded $100 million – eight commercial projects and
two institutional projects. In the commercial building sector, a $500 million
mixed-use project in Santa Clara CA, a $400 million hotel at JFK International
Airport in New York NY, and a $350 million warehouse in Orlando FL entered
planning. Within the institutional building sector, a $400 million hospital in
Phoenix AZ and a $150 million assisted living facility in Seattle WA entered
planning.
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