CRE Economic Indicators

by CoyDavidson on November 20, 2013


Two of the commercial real estate economic indexes that I follow closely each month are the Architectural Billings Index and CoStar Commercial Sales Repeat Sales Indices. Both the American Institute of Architects and The CoStar Group released their latest index summaries this week.

Architecture Billings Index Slows Down
Following three months of accelerating demand for design services, the Architecture Billings Index (ABI) reflected a somewhat slower pace of growth in October. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lead time between architecture billings and construction spending. The American Institute of Architects (AIA) reported the October ABI score was 51.6, down from a mark of 54.3 in September. This score reflects an increase in design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 61.5, up from the reading of 58.6 the previous month … read more at American Institute of Architects

Commercial Real Estate Pricing Growth Levels Off In August Amid Uncertainty Over Fed Tapering And Rising Interest Rates
The two broadest measures of aggregate pricing for commercial properties within the CCRSI—the value-weighted and the equal-weighted versions of the U.S. Composite Index—saw mixed movements for the month. The equal-weighted index, which reflects the pricing impact of more numerous smaller transactions, edged downward by 1.1% in August, while the value-weighted index, which is influenced by larger transactions, expanded by 1.6% during the same time period. On an annual basis, both indices advanced by nearly 10%. Despite investor reassurance following the Fed’s decision in September to delay the tapering of its quantitative easing policies, further economic uncertainty, largely stemming from the U.S. government shutdown and debt ceiling debate, may lead to further volatility in pricing in the near term … read more at The CoStar Group

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