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 entering the queue. If financial conditions improve in early 2024, steady planning activity should follow.”

A total of 20 projects valued at $100 million or more entered planning in September. The largest commercial projects included the $400 million Platform 16 office development in San Jose, California, and the $230 million Waterford Millstone Data Center in Waterford, Connecticut. The largest institutional projects to enter planning were the $927 million UC San Diego Research Park in San Diego, California, and phases three and four of the Kilroy Oyster Point Life Sciences Complex in San Francisco, California, valued at a total of $634 million.