Commercial Leading Indicator Signals Modest Growth

Vancouver, BC – December, 2018. The BCREA Commercial Leading Indicator (CLI) was essentially unchanged from the second to the third quarter of 2018. Compared to this time one year ago, the index is 1.3 per cent higher.

“Slowing activity, particularly in the retail sector, led to a flattening of the CLI last quarter,” says BCREA Deputy Chief Economist Brendon Ogmundson. “A flattening index tends to point to a slower, yet still positive growth environment over the next year.”

While overall economic activity supportive of increased demand for commercial real estate has moderated, the third quarter did see a significant jump in office employment. If that increase is sustained, it would reflect an increased need for office space in the future, leading to increased investment and leasing activity in the office sector.

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