Concrete & Masonry Contractors NAICS 238110, 238140

Apr 6, 2026 - Nonresidential Building Starts Increase

• The total value of nonresidential building construction starts increased 17.6% in February 2026 from January, according to Dodge Construction Network. Driven by strong office and data center activity, commercial starts jumped 48.5%. However, other commercial construction segments saw declines in starts, including parking garages (down 23.1%), warehouses (-12.1%), hotels (-7.9%), and stores (-4.7%). Led by educational projects, institutional starts increased 8.7%, despite a significant decline in healthcare starts. Dodge’s associate director of forecasting, Sarah Martin, said, "After a weak start to the year, nonresidential and residential building starts steadily rebounded throughout February. Conversely, nonbuilding activity slowed down last month – normalizing from elevated levels in January."
• The total value of private US construction put in place dropped by 0.6% in January 2026 compared to the prior month, according to the US Census Bureau. Residential spending fell 0.8%, as multifamily spending dropped 0.7% and single-family construction spending declined 0.2%. Nonresidential spending decreased 0.4%. Only four subsegments of the nonresidential building sector saw growth in January compared to December 2025: office (+1.1%), healthcare (+0.4%), communication (+0.2%), and lodging (+0.1%). The remaining nonresidential building categories posted flat or negative growth in January 2026, including commercial (-0.1% from December), educational (-1.1%), religious (-1.1%), amusement and recreation (-0.9%), transportation (-0.2%), manufacturing (-2%), and power (0%).

• North America’s data center construction boom showed its first slowdown in six years in late 2025, as capacity under construction fell nearly 6% year over year despite record demand for AI and cloud services, according to CBRE research and reporting by Channel Dive. Data Center vacancy dropped to a historic low of 1.4% even as supply rose 36%, reflecting tight market conditions. Developers faced growing constraints from power availability, transmission upgrades, and electrical equipment shortages, which delayed projects and reduced quarterly additions by 50% in Q4, according to Wood Mackenzie. Still, investment remained strong, with 2025 global data center spending rising 57% to more than $700 billion, led by hyperscalers such as Amazon, Google, Meta, and Microsoft, according to Dell'Oro Group. The slowdown highlights infrastructure bottlenecks, even as long-term demand and capital investment continue to drive expansion.
• Office-to-apartment conversions in the US reached 90,300 units at the start of 2026, up 28% year over year, according to RentCafe. New York led with 16,358 units, followed by Washington, DC, and Chicago. Office buildings account for 47% of future projects, ahead of hotels at 18% and industrial properties at 16%. Remote work and high vacancy rates, near 20%, are driving the trend. Cities facing housing shortages are offering incentives, including tax breaks in New York City and Washington, D.C., and financing tools in Chicago. Additional projects are planned across major metros, including Atlanta, Cleveland, Dallas, Denver, and Philadelphia, as officials view conversions as a strategy to address housing demand and revive downtown areas.