The Dodge Momentum Index rose 2.4% in January to 126.4 from its December reading of 123.4. The Momentum Index is a monthly measure of the first (or initial) report for nonresidential building projects in planning. This has been shown to lead to construction spending for nonresidential buildings by a full year.
The over-all index for 2016 is 1.7% higher vs. 2015, even though the commercial portion is down 6.8%. The most recent months of commercial planning has been erratic but over all commercial real estate and construction fundamentals are improving. Increase in wages, uptick in state and federal spending and high optimism has commercial construction momentum headed in a positive direction.
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Stephen Fean is the Vice President of Business Development at Watchdog Real Estate Project Managers, a real-estate consulting firm that acts as either the project management extension of an existing real estate department or as an advocate for companies without this type of internal resource. More about Watchdog Real Estate Project Managers as well as additional blog posts can be found here.