Thursday, February 27, 2014

BC Commercial Leading Indicator Signals Strong Market Ahead

The BCREA Commercial Leading Indicator (CLI) rose for the fourth consecutive quarter, increasing 0.8 points in the fourth quarter of 2013. The index is currently sitting at 115.1. On a year-over-year basis, the CLI is 2.3 per cent above the fourth quarter of 2012. The index reached an all-time high of 116.1 in the second quarter of 2007.

















After a full year of a rising CLI index, the trend underlying the CLI has moved sharply upward from its previously flat trend. An upturn in the CLI trend is historically a good signal of expanding commercial real estate activity in the following two to four quarters, which bodes well for growth in 2014.

"The CLI rose for a fourth consecutive quarter on encouraging signs of improving growth in the BC economy,” said Brendon Ogmundson, BCREA Economist. “The rising trend in the CLI signals further strength ahead for the commercial real estate market in 2014."


Copyright BCREA – reprinted with permission 

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