BC commercial activity stable but with potential headwinds

By Steve Randall

Commercial real estate activity in British Columbia has benefitted from some positives in recent months but there are challenges.

The British Columbia Real Estate Association’s Commercial Leading Indicators (CLI) ticked 1.3 points higher in the first quarter of 2019 compared to the previous quarter. Its reading of 135.2 is 1.1% higher than a year earlier.

“While economic activity remained tepid at the start of 2019, a rebound in financial markets pushed the CLI higher,” says BCREA Deputy Chief Economist Brendon Ogmundson. “That signals a lower risk environment, but a slowing economy may impact future commercial real estate activity.”

The early part of 2019 has seen slower growth in British Columbia with the economic activity component of the CLI down for the third straight quarter.

Although there are some mixed employment conditions, the office employment sector is at an all-time high providing good news for that segment of the commercial real estate market.

Overall, the CLI points to stable commercial activity in 2019.

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