The British Columbia Real Estate Association (BCREA) Commercial Leading Indicator (CLI) rose two index points to a new record high of 117.1, eclipsing the previous high of 116.2 set in the second quarter of 2007.
The sharp increase in the CLI pulled the underlying trend in the index higher, also to a new record. This indicates significant strength underpinning the economic environment for commercial real estate. Historically, a rising trend in the CLI indicates stronger commercial real estate activity two to four quarters ahead. Given the current trend, we would expect strength in the commercial real estate market to prevail into the first half of 2015.
"After seven years the CLI has finally surpassed its pre-financial crisis peak” said Brendon Ogmundson, BCREA Economist. “Going forward, significant momentum in the BC economy should help to underpin a strong commercial real estate market over the next six to twelve months."