THE British Columbia Real Estate Association (BCREA) Commercial Leading Indicator (CLI) rose for the third consecutive quarter, increasing 0.4 points in the third quarter of 2013 to 114.1. On a year-over-year basis, the CLI is 0.8 per cent above the third quarter of 2012 after reaching an all-time high of 116.1 in the second quarter of 2007.
After flattening out through 2012, the trend in the CLI has turned upward. An upturn in the CLI trend is historically a good signal of expanding commercial real estate activity in the following two to four quarters.
“The CLI rose for a third consecutive quarter as growth in retail sales and office employment more than offset a decline in financial conditions,” said Brendon Ogmundson, BCREA Economist. “The rising trend in the CLI points to an improving BC economy and stronger commercial real estate activity in 2014.”