Modest growth for Vancouver’s CRE market

by Steve Randall on 07 Dec 2018

A slowdown in retail real estate activity has exacerbated flat growth for the CRE sector.

The British Columbia Real Estate Association’s Commercial Leading Indicator (CLI) for the third quarter shows no significant change from the previous quarter and a 1.3% gain from Q3 2017.

Weak retail sales (down 2.3% quarter-over-quarter after adjusting for inflation and down 1.8% year-over-year) and reduced manufacturing shipments weighed on the CLI while increased office-based employment (up 14,000 quarter-over-quarter) and a slightly more favourable financial environment helped mitigate the weakness.

The gains in office employment pushed the CLI measure for this sector to a record high and, if the trend continues, would mean an increased need for office space in the future, leading to increased investment and leasing activity in the office sector.

“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.”  

Post a Comment

Most Trending News

Commercial real estate marketing: where to start

Here's how to start planning a successful commercial real estate marketing plan that will boost your sales and get you familiar with popular digital marketing tactics.

Read More
Tips for real estate agent outfits

First impressions are extremely important in real estate, so why not put your best look forward? Here's what to consider.

Read More
How to stage a bathroom to impress potential buyers

Staging a bathroom can help potential buyers see themselves in that space. But here's how to really impress them!

Read More