Commercial real estate indicator rises in Q2

More net absorption of space, higher rents expected into 2008

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A forward-looking index for the commercial real estate market recorded its ninth consecutive improvement in the second quarter, the National Association of Realtors reported today. The Commercial Leading Indicator for Brokerage Activity rose 0.5 percent to an index of 120.7 in the second quarter, the highest on record, from a downwardly revised reading of 120.1 in the first quarter, and is 1.1 percent higher than the second quarter of 2006 when it stood at 119.7. NAR's track of the index dates back to 1990. Lawrence Yun, NAR senior economist, said in a statement that the commercial sectors are benefiting most from rises in industrial production, shipments of durable goods and wholesale trade. "Despite some signs of slower overall economic expansion, the rise in the index means net absorption of space in the industrial and office sectors is likely to expand over the next six to nine months," he said. "In addition, an improvement in returns on investment implies healthy rent ...