Leading Index for Commercial Real Estate Increased 7% in June

Leading Index for Commercial Real Estate Increased 7% in June


by Calculated Risk on 7/10/2025 04:47:00 PM

From Dodge Data Analytics: Dodge Momentum Index Expands 7% in June

The Dodge Momentum Index (DMI), issued by Dodge
Construction Network, grew 6.8% in June to 225.1 (2000=100) from the downwardly revised
May reading of 210.9. Over the month, commercial planning grew 7.3% while institutional
planning improved 5.7%.

“Nonresidential planning steadily improved in June, alongside strength in warehouse,
recreational and data center planning,” stated Sarah Martin, associate director of forecasting at
Dodge Construction Network. “Planning momentum in other key sectors – like education, hotels,
and retail stores – was more subdued. Expectations for weaker consumer spending and travel
demand, as well as volatility around funding, is likely contributing to weaker momentum of
projects entering the planning queue for those sectors.”

Warehouse activity gained substantive momentum in June, and data center planning levels
remain robust. On the institutional side, large recreational projects propped up the month-over
month gain, while healthcare planning momentum continued to accelerate. In June, the DMI
was up 20% when compared to year-ago levels. The commercial segment was up 11% from
June 2024, and the institutional segment was up 46% after a weak June last year. If all data
center projects between 2023 and 2025 are excluded, commercial planning would be up 12%
from year-ago levels and the entire DMI would be up 23%.

The DMI is a monthly measure of the value of nonresidential building projects going into planning, shown to lead construction spending for nonresidential buildings by a full year.
emphasis added

Dodge Momentum Index Click on graph for larger image.

This graph shows the Dodge Momentum Index since 2002. The index was at 225.1 in June, up from 210.9 the previous month.

According to Dodge, this index leads “construction spending for nonresidential buildings by a full year”.  This index suggests a pickup in mid-2025, however, uncertainty might impact these projects.  

Commercial construction is typically a lagging economic indicator.



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