The National Association of Realtors announced plans to launch a new leading indicator on Feb. 22 for the commercial real estate market. The index, to be published quarterly, aims to provide early signals of turning points between expansions and slowdowns in commercial real estate markets.
The index, dubbed the “Commercial Leading Indicator for Brokerage Activity,” utilizes modeling of a variety of series over an extended period of time to demonstrate a change in commercial brokerage activity that can be seen two quarters later through two measures: net absorption of space in the industrial and office sectors, and the value of building construction put-in-place on completion of retail, office, warehouse and lodging structures.
The first published index will project national commercial market activity that can be expected in the third quarter of 2006.
A white paper explaining development of the index will be posted in the research area of the trade group’s Web site, www.realtor.org.
The National Association of Realtors is a national trade organization for the real estate industry.
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