BC commercial market continues to improve

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Recent data signals continued improvement in the B.C. commercial real estate sector. For the third consecutive quarter, the BCREA Commercial Leading Indicator (CLI) rose, advancing 1.3 index points, or 1.2 per cent, to a revised index level of 111.91. On a quarter-over-quarter basis, the CLI is now 3.2 per cent above its level in the first quarter 2011.
"The trend in the CLI has turned sharply upward, reflecting several months of strong underlying data,” said Brendon Ogmundson, BCREA economist. “This signals a potential acceleration commercial real estate activity in the subsequent two to four quarters."
According to the BCREA, this quarter’s increase in the CLI was driven by calmer global financial conditions to start 2012 as Euro-based fears cooled. The financial component of the CLI accounted for over one-third of CLI’s gain in the first quarter, with manufacturing output and employment growth also making a significant contribution.
“However, given the re-emergence of fears surrounding the Eurozone, last quarter’s gains may be only temporary,” added Ogmundson.

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