Dive Brief:
- The Dodge Momentum Index, a criteria that determines nonresidential structure preparation, dipped another 2.5% in June due to a deceleration in institutional preparation, according to the Dodge Construction Network
- While there were positives in the industrial sector, which increased 3.1% on the back of information center and hotel jobs, the institutional sector plunged 10.5% in June as education and health care activity stalled, according to Dodge. Compared to in 2015, nevertheless, the business and institutional sectors were 17% and 39% greater, respectively, though the length of time that momentum will continue is still uncertain.
- “Project activity in [the institutional] section drew back however continued to overshadow year-ago levels,” stated Sarah Martin, associate director of forecasting for Dodge Construction Network. “In contrast, development in the business section might be short lived, as the continued elevation in rates of interest and significantly tight loaning requirements weigh down the sector in the latter half of the year.
Dive Insight:
The index, which peaked in December 2022 and generally leads real building costs by 12 months, succumbed to the 4th straight month. It followed a bigger 6.1% decrease in May
Architectural activity, which likewise supplies a positive gauge for upcoming building work, was blended. The Architectural Billings Index increased back into favorable area in its latest reportBillings dropped for the ninth successive month at companies with an industrial expertise, according to the American Institute of Architects, offering more proof that industrial activity is subsiding.
An overall of 22 jobs valued at $100 million or more went into preparation in June, according to Dodge. The biggest industrial jobs to go into preparation consisted of:
- The $335 million Queensbridge Collective Office Tower in Charlotte, North Carolina.
- The $280 million Old School Potomac Church Data Center in Stafford, Virginia.
The biggest institutional jobs to get in the preparation phases consisted of:
- The $710 million Medford Life Science Park in Medford, Massachusetts.
- The $157 million Center of Innovation structure in Emeryville, California.
