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CLI Indicates Growing Activity in B.C.’s Commercial Real Estate Sector
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(Posted on Jun 19, 2016 at 01:00PM by Michelle Bogle)
The British Columbia Real Estate Association’s (BCREA) Commercial Leading Indicator (CLI) pushed higher in Q1 2016, reflecting a strong and growing provincial economy. The CLI index posted a 1.1 point increase to 120.8, compared to the previous index high of 120.1 in Q1 2015.Â
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With the B.C. economy swelling, growth in investment, leasing and other commercial real estate activity is also expected to rise over the next year.Â
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Most of the growing activity in the CLI in Q1 2016 can be traced to the economic activity component of the index. B.C. has led all of Canada in economic growth for the last two years and is currently tracking at over 3% growth in 2016.Â
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Consumer spending is also the main driver of retail sales, posting 7% growth through Q1 2016. Wholesale trade and manufacturing sectors earned solid gains as well, pushing the CLI’s economic activity component higher by 1.2 index points.Â
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According to BCREA, employment in B.C. is also gaining traction – total employment has jumped 2.9% this year, which is the fastest pace of job growth since 2007. However, employment generated in key commercial real estate sectors remains mixed. The CLI measure of office employment increased for the first time since mid-2014, increasing by 6,600 jobs. On the other hand, manufacturing employment, which had posted consistent gains for several consecutive quarters, dropped in Q1 2016 by 2,900 jobs.
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At Marcus & Millichap Vancouver, our advisors always have their eyes on the provincial economics factors that drive our commercial real estate sector. To stay abreast of investment, leasing and other commercial real estate activity, please contact our office to speak with an associate.
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