Commercial Building Planning Slows in March, But DMI Remains 30% Above 2024 Levels

The Dodge Construction Network’s (DCN) Dodge Momentum Index (DMI) dropped by 6.9% in March, led by decreased commercial and institutional planning. According to the monthly DMI, commercial planning declined 7.8%, while institutional planning fell 5%. On a year-over-year basis, the DMI was up 30% compared to March 2024. 

The DMI is a monthly measure of the value of planned nonresidential building projects. It has been shown to lead construction spending for nonresidential buildings by a full year.

“Increased uncertainty around material prices and fiscal policies may have begun to factor into planning decisions throughout March,” says Sarah Martin, associate director of forecasting. “While planning data has weakened across most nonresidential sectors this month, activity remains considerably higher than year-ago levels and still suggests steady construction activity in mid-2026.”  

DMI data indicates weaker planning activity for warehouses, data centers and retail stores drove March’s commercial decline. Conversely, hotel and office planning increased over the month. On the institutional side, planning activity slowed for education, healthcare and government buildings.

On a year-over-year basis, the commercial segment was up 32% from March 2024, and the institutional segment was up 27% over the same period. The influence of data centers on the DMI this year remains substantial. DCN officials say that if data center projects between 2023 and 2025 were removed, commercial planning would be up 4% from year-ago levels, and the entire DMI would be up 12%. While momentum decelerated for data centers this month, activity levels remain very high.  

Twenty-five projects valued at $100 million or more entered planning throughout March. The largest commercial projects included the $400 million Logistics Land Investments Data Center in Bessemer, Alabama, the $340 million expansion to the Ontario Convention Center and Hotel in Ontario, California, and the $300 million Project Cinco Data Center (300 MW) in Natalia, Texas. The largest institutional projects to enter planning were the $500 million ambulatory care building at Scripps San Marcos Medical Center, the $165 million Roanoke High School in Roanoke, Virginia and the $135 million Milken Community School expansion in Los Angeles.