CRE Index Implies Recovery Thru '07

A commercial real estate index maintained by the National Association of Realtors is indicating that the improvement in the CRE market will continue into next year, according to the NAR.The Commercial Leading Indicator for Brokerage Activity stood at 119.4 in the second quarter, up 0.4% from 118.9 in the first quarter and 2.5% from 116.5 a year earlier, the association reported. It was the fifth consecutive quarter of growth in the index. "Our commercial leading indicator has risen in 11 out of the last 12 quarters, meaning the recovery in commercial real estate will be sustained well into 2007," said David Lereah, the NAR's chief economist. "However, we are seeing a deceleration in the rate of growth -- apparently in response to higher oil prices and interest rates -- so the expansion in net absorption and commercial construction should continue, but at a slower pace." The association can be found online at http://www.realtor.org.