Miami Commercial Real Estate’s Numbers Suggests Improvement Over the Years

When the reports came in, I was in shock. I never would have thought that with a market like we have right now, there is still some fight left for our Commercial real estate. The Commercial Leading Indicator for Brokerage Activity, a leading indicator for the commercial real estate market, has increased for six consecutive quarters, showing that continued growth can be expected in commercial real estate sectors, according to the National Association of Realtors. It is a good sign considering the struggle that the market is experiencing right now. In the third quarter, the Commercial Leading Indicator for Brokerage Activity rose 0.4 percent to a reading of 120.1 from an index of 119.6 in the second quarter, and is 2.9 percent higher than the third quarter of 2005 when it stood at 116.7. Which if anything is a good way to set example for the rest of the market.

The index is at the highest level in the series of the indicator, which goes back to 1990. Although we have a strong uptrend in the commercial sectors, the rise in the index over the last two quarters shows a lower rate of expansion in comparison with late 2005 and early 2006, This means that commercial sectors will continue to grow, but at a more modest pace. Growth in the index means net absorption of space in the industrial and office sectors will continue to improve over the next six to nine months, with rising completions of overall retail, office, warehouse and lodging structures.

The index incorporates 13 variables that reflect future commercial real estate activity, weighted appropriately to produce a single indicator of future market performance, and is designed to provide early signals of turning points between expansions and slowdowns in commercial real estate. The commercial lending indicator is a tool to assess market behavior in the major commercial real estate sectors. Which explain that this year will be on a strong holding stage and will have a good chance of having some critical changes.

Commercial real estate practitioners can anticipate leasing and sales activity in the first quarter to be approximately 2.9 percent higher than the first quarter of 2006. Net absorption in the office and industrial sectors in the first quarter of 2007 is expected to be 70 million to 90 million square feet, with about $315 billion to $325 billion in new, completed commercial construction activity, compared with $309 billion of new construction recorded in the third quarter. From previous year’s numbers it explains how our market is reeling the investment fish. Miami will always be Miami and no matter how hard the market is, believe it will come as ni surprise how the Commercial real estate will pan out.

Jron Magcale

http://miamirealestatesearch.org/

Advertisements

Tags: , , , , , , , , ,

One Response to “Miami Commercial Real Estate’s Numbers Suggests Improvement Over the Years”

  1. Miami Commercial Real Estate’s Numbers Suggests Improvement Over the Years · Real-Estate.ExplainedOnline.Net Says:

    […] Original post by jron […]

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: