BC Commercial Leading Indicator Holds Steady in the Third Quarter

The BCREA Commercial Leading Indicator (CLI) held steady in the third quarter, albeit down 0.1 points to 112.5. This follows several consecutive quarters of strong increases and the index is 3 per cent higher than in the third quarter of 2011.

" The financial component of the CLI continued to make a significant contribution to growth in the third quarter due to further compression of risk spreads and investor enthusiasm for commercial real estate assets. However, positive financial market developments were largely offset by weaker employment in the office and manufacturing sectors as well as softer economic activity, particularly in retail and wholesale trade.
"Despite a leveling off in the third quarter, the trend in the CLI continues to signal strong growth ahead for the BC commercial real estate market," said Brendon Ogmundson, BCREA Economist, "Given the robust trend in the CLI, we anticipate commercial investment and leasing activity will remain strong in 2013."

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