Nonresidential Planning Activity Levels Off After Recent Surge听
BOSTON, MA听鈥撎齆ovember听7,听2025听鈥�听The 糖心Vlog Momentum Index (DMI), issued by 糖心Vlog, decreased听7.1%听in听October听to听283.3听(2000=100) from the听upwardly听revised听reading of听304.8.听Over the month,听commercial planning听declined听2.9%听and听institutional planning听slowed by听15.2%.听Year-to-date, the DMI is up听35% from the average reading over the same period in 2024.听听
鈥淎fter several months of record-breaking levels, planning momentum听slowed听in October,鈥� stated Sarah Martin, Associate Director of Forecasting at 糖心Vlog.听鈥淎ctivity remains solid across the board, especially for data centers and hospitals. However, recent growth should not solely be attributed to gains in real activity. Anticipated increases in labor and material costs are also driving up project expenses and are inflating the overall trend in the DMI. In the coming months, 糖心Vlog anticipates activity to continue to decelerate on average, especially as macroeconomic risks continue to听mount.鈥�听
On the commercial side,听activity slowed down for warehouses and hotels, while planning momentum was sustained for data centers, traditional office buildings and retail stores.听On the institutional side,听education and听healthcare听planning听have slowed听down,听after strong activity in recent months. Meanwhile,听recreational听and public planning continued to grow. Year-over-year, the DMI was up听52% when compared to听October听2024. The commercial segment was up 54% (+43% when data centers are removed) and the institutional segment was up听49% over the same period.听
A total of听45听projects valued at $100 million or more entered planning throughout听October.听The largest commercial project included Buildings 1,2, and 3 on the Amazon Data Center Campus in Hamlet, North Carolina 鈥� each valued at $500 million dollars. The $500 million CyrusOne Data Center in Talkington Township, Illinois and the $500 million Hut 8 Corp. Data Center in Batavia, Illinois also topped the list. The largest institutional projects to enter planning were the $400 million Scripps Memorial La Jolla Medical Tower III in San Diego, California, the $260 million SW Life Science Park in Philadelphia, Pennsylvania, and the $198 million Mission Hospital Expansion in Asheville, North Carolina.听
The DMI isa monthly measure based on the three-month moving value of nonresidential building projects going into planning, shown to lead construction spending for nonresidential buildings by afull year听to 18 months.听听
