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B.C.’s Commercial Real Estate Index Hits Record High
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(Posted on Sep 6, 2016 at 01:00PM by Michelle Bogle)
According to a recent news release by the BC Real Estate Association (BCREA), commercial real estate action in the province has hit its highest levels in history, propelled by strong growth in the provincial economy.Â
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BCREA’s Commercial Leading Indicator (CLI) increased 1.7 index points in the second quarter to a new high of 122.2, which is an increase of 2.2% compared to the second quarter of 2015.
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The index, which tracks specific economic data to forecast the commercial real estate market, was at 100 in 2009 at the height of the financial crisis.
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According to BCREA Economist Brendon Ogmundson, the recent increase reflects a strong underlying economy and accelerated employment growth. He adds, “The CIL was further boosted by a rebound in financial markets that were previously dragging the index lower.â€
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Every sector of the commercial real estate market is showing strength – most of which is centralized with Metro Vancouver, which accounts for approximately 80% of the commercial real estate sales and leasing in the province. The most noteworthy asset classes continue to be industrial, office and retail properties, which are all experiencing lower than usual vacancy rates.
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To learn more about the Lower Mainland commercial real estate market and how you can partner with Marcus & Millichap, please contact our Vancouver office to speak with an associate. Â
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