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January's Dodge Momentum Index increases slightly thanks to gains in the institutional sector

2024-02-08T17:14:00-05:00

The latest Dodge Momentum Index (DMI) report has shown a slight increase of 0.1% for January to a new total of 184.1, indicating an improvement over December’s revised figure of 183.9.

Over the month, commercial planning fell by 1.0%, while institutional planning improved by 2.1%. Year over year, the DMI is now 3% lower than January 2023's totals. The commercial segment was down 12% from year-ago levels, while the institutional segment was up 15% over the same period.

"Divergent trends between commercial and institutional planning continued in January, nullifying any growth on the overall Momentum Index. Nevertheless, lending standards began to loosen in January, and the Fed is expected to begin cutting rates in the back half of the year. With this in mind, momentum should resume in commercial activity throughout 2024 as owners and developers gain confidence in market conditions for 2025," Sarah Martin, the associate director of forecasting for Dodge Construction Network, said in a...

December's Dodge Momentum Index increases by 3% thanks to commercial sector gains

2024-01-12T12:32:00-05:00

The latest Dodge Momentum Index (DMI) has posted an increase of 3% for December to a new total of 186.6, showing a marked improvement over November’s revised figure of 181.5.

For the month, commercial planning grew 1.0%, and institutional planning improved 6.1%. Hotels and data centers were the primary drivers of the sector, while the institutional sector was propelled by healthcare and public buildings. Overall, the commercial sector was down 9% from 2022, while the institutional sector was up 14% over the same time period.

“The Momentum Index ended the year 11% below the November 2022 peak, ultimately stabilizing as the year progressed. Regardless, the DMI averaged a reading of 184.3 in 2023, hitting levels of activity that haven’t been recorded since 2008,” Sarah Martin, the associate director of forecasting for Dodge Construction Network, said in a statement. “While ongoing labor and construction cost issues will persist in 2024, a substantive amount of projects are sitting in ...

Dodge Momentum Index drops 1% for November, reversing October's gains

2023-12-07T13:06:00-05:00

The latest Dodge Momentum Index (DMI) for November has indicated a 1% drop to 179.2 a month after posting a revised total of 181.7 for October that was propelled by gains in the commercial sector.

Over November, both the commercial and institutional components fell by 1%. DCN says these results were driven largely by the weak performance of the educational segment, despite gains in healthcare and public spaces. Year over year, the index was 14% lower than in November 2022. The commercial segment was down 20% from November 2022 levels, and the institutional segment was up 2% over the same period.

“While both portions of the Momentum Index saw slower momentum in planning, overall levels remain steady and will support construction spending in 2024 and 2025,” stated Sarah Martin, associate director of forecasting for DCN. “Nonresidential planning activity will remain constrained from stronger growth amidst ongoing labor and construction cost challenges.”

Graphic: Dodge Construction Net...

Dodge Momentum Index posts 1% increase for October, driven by commercial sector gains

2023-11-07T18:06:00-05:00

The data just released in the Dodge Momentum Index (DMI) reporting for the month of October indicate a 1.0% increase to 181.7 over September’s revised total of 180.3.

The increase was propelled by a 2.0% rise in the commercial component, while the institutional component dropped by 1.4%. Year over year, the DMI came in 8% lower than in October of 2022. The commercial segment was down by 14%, while the institutional segment was up by 7%.

“Heightened momentum in warehouse planning activity supported the commercial side of the Index this month, while muted education planning activity slowed the institutional portion,” Sarah Martin, the Associate Director of Forecasting for Dodge Construction Network, said in a statement. “Overall levels of planning activity remain robust and will support construction spending over the next 12 to 18 months.”

Graphic: Dodge Construction Network

A total of 21 projects valued at $100 million or more entered planning in the month. The largest commercial ...

OMA's new Toranomon Hills Station Tower opens in Tokyo

2023-10-27T13:48:00-04:00

OMA and Partner Shohei Shigematsu have shared new photos of their just-completed work on the Toranomon Hills Station Tower project for developer Mori Building Co. in Tokyo.

The first high-rise to be completed inside the studio’s larger Toranomon Hills mixed-use district overlooks the terminus of Shintora-dori Avenue, whose axis is extended through a split base containing a Metro station and shopping area. This creates an interface between city and the building that the architects say is essential to their design’s public character, an element that culminates in a top-level cultural center called TOKYO NODE.

Photo: Mori Building Co., Ltd, courtesy of OMA

Photo: Tomoyuki Kusunose, courtesy of OMA

In between the public elements, the total 873-foot tower contains 32 levels of office spaces, a hotel, and two restaurants. Users will approach via an elevated T-Deck pedestrian walkway that connects the site to the surrounding development. Base-level activities are extended vertically in a ban...

Henning Larsen designs Europe's largest mass timber logistics center for Bestseller

2023-10-26T17:39:00-04:00

Henning Larsen has revealed designs for a new mass timber logistics center project in Lelystad on Flevopolder Island, the Netherlands.

The project includes a restaurant with roof garden and terrace for employees and boasts several sustainable credentials, including the retention of 40% of the 70-acre total site for landscaping and wildlife habitats. Another 10% increase in its overall biodiversity will also be achieved through its realization. The firm says its construction is driven by circular economy principles and the desire to create a fairer working environment tied to reduced emissions.

Image courtesy Henning Larsen

For the design of Logistic Center West (LCW), Henning Larsen proposes constructing a wetlands network that wraps the site, supported by a high-tech irrigation system that also aids in flood mitigation and rainwater harvesting while preventing off-site contamination from commercial activities. The large 1.66 million-square-foot logistics hub is topped by a 331,022-s...

Boost in institutional planning drives 3% Dodge Momentum Index rise in September

2023-10-06T18:11:00-04:00

September's Dodge Momentum Index (DMI) rose 3% to 182.5 from the revised August reading of 178.0. Over the month, the DMI’s commercial component fell 1%, while the institutional component rose 9%.

The dip in the commercial segment was driven by weaker office planning. On the other hand, the institutional segment was spurred by stronger education, notably life science buildings, and healthcare planning activity. Year over year, the DMI was 5% lower last month than in September 2022. The commercial sector was 12% below last year’s September levels, while the institutional sector was up 12% over the same time period.

“Solid demand for data centers, life science labs, and hospitals supported the uptick in nonresidential planning activity last month,” said Associate Director of Forecasting for Dodge Construction Network, Sarah Martin. “While month-to-month trends can be volatile, year-to-date trends show an overall decrease in commercial planning, offset by more institutional projects en...

Dodge Momentum Index sees 6.5% dip due to double-digit decline in institutional planning

2023-09-08T18:11:00-04:00

The August Dodge Momentum Index (DMI) reading dipped 6.5% to 178 from the revised July reading of 190.3. Over the month, the commercial component of the DMI fell 1.6%, and the institutional component saw a double-digit decline of 14.8%.

The notable contraction in the institutional sector was driven by a deceleration in education, healthcare, and amusement planning activity. Stronger hotel planning made up for weaker office activity resulting in a milder drop in the commercial component. Year over year, the DMI remained 4% higher than in August 2022, with the commercial and institutional sectors up 3% and 7%, respectively.

“Overall activity remains above historical norms, but weaker market fundamentals continue to undermine planning growth,” said Associate Director of Forecasting for Dodge Construction Network, Sarah Martin. “It’s likely that the full year of tightening lending standards and high interest rates has begun to affect institutional planning, which has otherwise been resi...

Stagnation in commercial construction sees 1% Dodge Momentum Index decline

2023-08-07T17:03:00-04:00

Dodge Construction Network’s Dodge Momentum Index (DMI) fell by 0.9% in July to 193.4 from the revised June reading of 195.1. Last month, the commercial component remained relatively flat, declining only by 0.2%, and the institutional component fell 1.9%.

Planning in all commercial sectors pulled back or remained flat in July. Hotel planning experienced the largest dip, which marks four consecutive months of decline. The two largest institutional sectors, education and healthcare, saw a deceleration in the amount of projects entering planning. Year over year, the DMI is 21% higher than in July 2022, with the commercial components up 13% and 35%, respectively.

“While both segments of the Index fell this month, underlying project data points to divergent trends in the nonresidential sector,” said associate director of forecasting for Dodge Construction Network, Sarah Martin. “In comparison to January 2023, commercial planning activity is down 10% through July, while institutional pla...

Dodge Momentum Index falls again in June due to sharp decline in institutional planning

2023-07-11T13:45:00-04:00

The Dodge Momentum Index (DMI) continued its decline in June with a 2.5% decrease resulting in a reading of 197.3 from a revised May reading of 202.4. Over the course of last month, the commercial component rose 3.1%, while the institutional component dipped 10.5%.

According to the Dodge Construction Network, commercial planning in June was driven by a boost in data center and hotel planning projects. Institutional planning, however, was pulled back by a dip in education and healthcare activity. Year over year, the DMI is 25% higher than in June 2022, with the commercial and institutional components up 17% and 39% respectively.

Graphic: Dodge Construction Network

“A deceleration in institutional planning caused the Momentum Index to decrease in June,” said Dodge Construction Network’s associate director of forecasting, Sarah Martin. “Project activity in this segment pulled back from the robust highs of the last three months but continued to dwarf year-ago levels. In contrast, growth...

Dodge Momentum Index continues decline in May, led by poor commercial planning activity

2023-06-07T16:47:00-04:00

Data from the latest Dodge Momentum Index (DMI) shows a slight decline of 2.0% to 180.5 for May, continuing a three-month downturn that follows April’s revised total of 184.1 and the 183.7 figure that was recorded in March.

For the month, the DIM’s commercial component fell to 6.1%, while the institutional component improved to 5.6%.

The Dodge Construction Network notes that the commercial sector was impacted by continued poor showings in hotel and office planning. In terms of year-over-year numbers, the DMI is now 11% higher than in May of last year. (Dodge notes that the commercial and institutional components were up 7% and 18%, respectively.)

Graphic: Dodge Construction Network

“The DMI dipped in May amid sustained weakness in commercial planning activity,” Sarah Martin, the associate director of forecasting for Dodge Construction Network, said in a statement. “Conversely, institutional planning steadily improved over the month as research and development laboratories and hospi...

Dodge Momentum Index declines in April, driven by weak commercial planning figures

2023-05-05T13:04:00-04:00

New data from the latest Dodge Momentum Index (DMI) has shown a decline of 5.1% to 180.9 for April, continuing a downward trend in the wake of March’s revised total of 190.6 that has been led largely by economic turmoil in the commercial planning sector.

The data showed an 8.0% decline in the commercial component, while the institutional component was up 0.3%.

Year over year, the DMI stands 11% higher than April 2022. The commercial and institutional components were up 7% and 17% respectively for the year, despite longstanding concerns about the viability of large offices post-Covid.

Graphic: Dodge Construction Network

“On par with our expectations, the Dodge Momentum Index continued to recede in April, due to declining economic conditions and ongoing banking uncertainty,” Sarah Martin, the associate director of forecasting for the Dodge Construction Network, said in a press release. “Weaker commercial planning is driving the DMI’s decline, as it is more exposed to real-time econom...

HWKN's upcoming commercial tower will bring a 'grade A, sustainability-certified workspace' to London's Canada Water Dockside

2022-12-02T14:24:00-05:00

UK real estate developer Art-Invest has announced Matthias Hollwich and the team at HWKN Architecture will be the designers for a new commercial tower at the Canada Water Dockside in London. The tower will be one of three new commercial buildings built on the 4.5-acre development, which will be master-planned by BIG.

The New York-based studio will make its UK debut by reportedly designing a 1.5 million square feet of "grade A, sustainably-certified" office workspace for up to 10,000 workers. The project includes 100,000 square feet of "affordable offices for small businesses, alongside community spaces and other amenities" located on the building's ground floor.

"Having worked with Matthias [Hollwich] and his team previously we knew his visionary and innovate approach would be well suited to Canada Water Dockside, and we’re delighted to be bringing his architecture to the UK for the first time," Luka Vukotic, the Development Director for Art-Invest, said in a statement.

Image court...

Construction starts dropped 9% in August despite promising gains in the manufacturing and residential sectors

2022-09-23T11:56:00-04:00

The latest Dodge Construction Network figures show a decline in construction starts by 9% after a July spike that was propelled mostly by the nonresidential and nonbuilding sectors.

Total starts now stand at an adjusted annual rate of $1.25 trillion. The August dip was caused by a 36% decrease in nonbuilding starts and minor increase in residential starts, which was recorded at only 1%. Year-to-date construction is now 16% higher in the first eight months of 2022 than it was in the same period of 2021, with nonresidential starts up 35% on the year overall.

The largest nonbuilding projects that commenced in August were the $1.9 billion third phase of the New Soo Lock Chamber in Sault Ste. Marie, MI, a $738 million paving project in Honolulu, HI, and a $460 million first phase wastewater treatment project plant in the same city. Gensler's $9.5 billion JFK Terminal One project led the nonresidential list, followed by the $8.5 billion Samsung semiconductor plant project in Texas, and t...

Dodge Momentum Index builds on 14-year high with slight jump in July figures

2022-08-08T10:00:00-04:00

The Dodge Momentum Index hit a 14-year high in June and recorded another 2.9% increase in July. The index now stands at 178.7, up from June’s figure of 173.6.

“Commercial planning in July was led by an increase in data center, office and warehouse projects, while fewer education and healthcare projects drove the institutional component lower,” the latest report reads. “Compared to July 2021, the Momentum Index was 8%. The commercial component was 15% higher, while the institutional component was 3% lower than a year ago.”

Graphic: Dodge Construction Network

The index mentioned 14 projects carrying values of $100 million or more being recorded in July. Among them, new projects in Sacramento, Miami, and suburban D.C. were the biggest commercial heavy hitters. Three institutional projects, including Blair + Mui Dowd’s $500 million Vanderbilt University Medical Center expansion, also topped the $100 million threshold.

Dodge Construction Network has said it will watch closely to see if t...

America's largest cities have seen a spike in commercial and multifamily construction starts during first half of 2022

2022-07-27T15:44:00-04:00

A new report from the Dodge Construction Network indicates the continued rebound of the building industry in 12 of America’s 20 largest metropolitan areas during the first two quarters of 2022, propelled by new starts in the commercial and multifamily residential sectors.

A survey at the year’s midway point revealed a 24% year-to-year increase in the value of all new starts within those two sectors, which were driven by demand for housing that is increasingly focused on more affordable apartment and condominium designs. The increases offer a strong indicator of continued performance of the industry through the rest of the year, according to Dodge Construction Network chief economist Richard Branch.

Previously on Archinect: Commercial and multifamily construction starts reflect nationwide recovery in 2021

Only three of the top 10 areas surveyed — Seattle, Los Angeles, and Philadelphia — were in decline as the starts in the rest of the country rose a total of 18% when compared to the ...

According to EIA survey results, U.S. commercial buildings are increasing and getting larger

2021-09-22T18:14:00-04:00

The U.S. Energy Information Administration’s (EIA) 2018 Commercial Buildings Energy Consumption Survey (CBECS) data is now available.

The CBECS is a national sample survey that collects information on the stock of U.S. commercial buildings, including their energy-related building characteristics and energy usage data. It defines commercial buildings as those in which at least half of the floorspace is used for a purpose that is not residential, industrial, or agricultural.

The survey provides building characteristics information for the estimated 5.9 million commercial buildings in the United States in 2018. The data includes the number of buildings and amounts of floorspace by characteristics including geographic region, building activity, size and age, employment and occupancy, energy sources used, and energy-related equipment.

According to the survey, the number of U.S. commercial buildings grew 6% from 2012 to 2018, and the total floorspace of commercial buildings increased ...

Delivery-only "ghost kitchens" could reshape the restaurant industry

2019-09-26T16:00:00-04:00

As more people order food to eat at home, and as delivery becomes faster and more convenient, the apps are changing the very essence of what it means to operate a restaurant. No longer must restaurateurs rent space for a dining room. All they need is a kitchen — or even just part of one.

Food delivery apps like Uber Eats, DoorDash, and Grubhub are reshaping the $863 billion restaurant industry in the United States, according to The New York Times, as delivery-only "virtual restaurants" take off.

The New York Times reports that over 4,000 virtual restaurants and "ghost kitchens" have sprung up across the country since 2017.

Don't believe the hype: Brick-and-mortar retail is here to stay

2019-09-24T19:30:00-04:00

The hypothetical Retail Apocalypse should be supported by a decline in the total retail establishments, but that's not the case. The Bureau of Labor Statistics (BLS) reported 1,044,509 establishments for 2018, for a net gain of 2,413 establishments over 2017 (1,042,096). The 2018 figure also represents a net gain of more than 20,800 establishments since a retail trough in 2011, a low point resulting from the Great Recession.

Sharon Woods, CEO of real estate consultant group LandUseUSA, writes in Public Square, a journal produced by the Congress for the New Urbanism (CNU) presents an opposing, data-driven view of the future of America's retail landscape.

Woods writes, "The future for brick-and-mortar retail is far less bleak than the scene painted by mainstream media. Although e-commerce is taking a larger share of the pie, brick-n-mortar and physical store sales are also continuing to grow. Most of the chain store closures are limited to certain segments of retail—particularly department stores anchors and apparel tenants of sprawling regional malls and strip centers."

As the chart above notes, much of the retail growth is taking place in chain restaurants, CVS HealthHUB stores, and dollar stores like Dollar Tree and Dollar General.

Commercial real estate is in trouble around the world

2019-09-19T19:59:00-04:00

Commercial-property prices in major cities around the world tumbled in the second quarter, amid signs of slower global growth and heightened trade tension between China and the U.S. Average property prices fell in the second quarter from the first quarter in Hong Kong and Seoul to London and Washington, D.C., according to data from Real Capital Analytics.

The Wall Street Journal reports that Melbourne, central Sydney, Seoul, Singapore, Paris, London, Chicago, and Washington, D.C. all saw a retreat in commercial real estate property values during the second quarter of 2019. The trend applies to struggling sectors like office buildings and malls.

Is the "retail apocalypse" overblown?

2019-08-13T14:00:00-04:00

The Department of City Planning studied commercial corridors in 24 neighborhoods across the five boroughs and concluded that while shuttered storefronts plague some of the city's richest and poorest areas, the phenomenon is far from a pandemic. "There is no single dominant trend in retail in New York City," the survey asserts. "Data did not indicate a pervasive vacancy problem across the city, but did identify a number of high-vacancy corridors."

Meet Tanya Ragan, the female real estate developer taking Dallas by storm

2019-07-15T16:50:00-04:00

Her newly resurrected 114-year-old Purse Building features a floor-to ceiling mural of the late Jacobs, an urbanist activist and author of The Death and Life of Great American Cities, superimposed on a downtown street grid. Above Jacobs’ striking bespectacled image, her mantra “New ideas need old buildings” blazes in neon lights.

The Dallas Morning News profiles Tanya Ragan, a Dallas-based real estate developer who is taking on commercial real estate's "boys club" mentality with a Jane Jacobs-inspired approach.

Ragan's Wildcat Management is behind a series of new and forthcoming projects, including the redevelopment of the Liberty State Bank Building, the Purse Building, and others, that aim to repurpose historic buildings in the city's downtown.

Ragan was recently listed among other influential developers by The Business Journals network.

Regarding the difficulty of developing real estate projects as woman in Texas, Kourtny Garrett, CEO of Downtown Dallas Inc., a non-profit development advocate in the city, told The Dallas Morning News, “It’s an uphill climb and you have to be smart and you have to be patient—Tanya would laugh if she heard me call her patient because she knows she’s sometimes not—but in terms of understanding how market cycles go, you have to be willing to hit the pavement every single da...

Jennifer Bonner's award-winning Office Stack reimagines the perception of mid-rise office design

2019-02-27T13:51:00-05:00

A growing household name within the profession and in academia, Jennifer Bonner's whimsical and highly technical design approach has enabled her to create and re-work traditional design methods. Her creative practice, MALL, is a compilation of playful approaches to "ordinary architecture." The name itself is an acronym with its own flexible meaning, similar to Bonner's design process. By focusing on everyday materials and familiar architecture motifs, the Alabama native architect seeks to perceive and portray architecture through whimsical discourse.

Best Sandwiches by Jennifer Bonner, MALL. Image by Adam DeTour

Office Stacks - Picnic Model by Jennifer Bonner, MALL. Image by Adam DeTour

Recently a winner of the 2019 Progressive Architecture Award, Bonner used her original project study, Best Sandwiches to help create her award-winning project Office Stack. The architectural stack may seem like a conventional building process. However, Bonner allows for each layer of the structure to ...