Ads Google

Slower economy saw commercial real estate activity weaken in Q4

by Steve Randall on 02 Mar 2020

British Columbia’s economy slowed in the fourth quarter of 2019 with an impact on the province’s commercial real estate.

The Commercial Leading Indicator (CLI) from the BC Real Estate Association (BCREA) weakened to 134.3 but was up 0.3% year-over-year.

The decline in manufacturing and wholesale trade was the main drag on the economic component of the index, falling for the sixth consecutive quarter. Retail gained but not enough to offset the loss.

Manufacturing employment weakened too and the gain in office employment was not sufficient to offset this, leaving this component of the CLI in negative territory too.

Employment growth in key commercial real estate sectors such as finance, insurance, real estate and leasing continued to be positive, up by 1,600 jobs in the fourth quarter. Manufacturing employment fell by 6,700 jobs from the previous quarter.

To complete the picture, the financial component of the CLI snapped a three-quarter positive run to turn negative, largely due to a decrease in benchmark Canadian REIT prices and an increase in short-term borrowing costs. 

The overall CLI trend has been relatively flat over the past 6 quarters.



Post a Comment



Most Trending News

Canadian buyers returning to major cities, expecting to spend more: BMO survey
News

The survey shows that buying a home in a major city centre has risen 5% since last year.

Read More
Hiking development charges will only make homes more unaffordable
News

The more time and money a developer spends navigating the extensive labyrinth of procedural processes, the costlier it becomes to build a new home.The more time and money a developer spends navigating the extensive labyrinth of procedural processes, the costlier it becomes to build a new home.

Read More
Upcoming Multifamily Conference offers investors unmatched opportunities to learn, network and grow
News

Coming to Toronto May 14-15 is an in-person event discussing multifamily investing and the benefits it can have for new and experienced investors.

Read More