Industry News

NAR plans leading index for commercial real estate market

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The National Association of Realtors said today it is developing a new leading indicator for the commercial real estate market, the first of its kind, scheduled for launch early in 2006. The announcement took place in San Francisco at NAR's annual Conference & Expo. David Lereah, NAR's chief economist, said the Commercial Real Estate Leading Indicator will incorporate data from a variety of indicators proven to affect commercial real estate activity. "Modeling a relationship between economic and commercial market indicators, as well as market trends and sentiment, will provide us with a new tool in assessing market behavior in the major commercial real estate sectors," he said. "It is being designed as an index to provide early signals of turning points between expansions and slowdowns in commercial real estate activity." It is widely accepted that commercial market activity lags general economic activity, so timely information is needed to make better-informed decisions. NAR i...