In the first quarter of 2015, the BCREA CLI rose 1.1 index points to 120.9, the fourth consecutive quarterly increase.
The BCREA says that a rising trend in the CLI generally points to increased investment, leasing and other commercial real estate activity two to four quarters ahead.
Therefore, the momentum underlying the CLI for the past several quarters is a very positive sign for the BC commercial real estate market in 2015.
“The BC economy is positioned to be a growth leader in 2015,” said BCREA economist Brendon Ogmundson. “A strong economic environment will be very encouraging to growth in commercial real estate activity this year.”
The BCREA report also said, despite a modest increase in long-term interest rates, the cost of borrowing remains very low and cap rates on commercial properties continue to point to robust valuations.
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Investment Hot Spots:
Caron, Nictaux South, Welland, Adelaide-Metcalfe, Dereham Centre
The commercial real estate market in British Columbia is poised for strong future growth, according to the BCREA Commercial Leading Indictor.