"Our methodology follows a well-known process of looking at changes in individual indicators and then weighting them appropriately in a process that results in a single indicator of future market activity," Lereah adds. For example, from the third quarter to the fourth quarter of 2005, the preliminary value of the CLI increased by .8%; during that same period from in 2004, the number went up 1.6%, and again in 2003, the figure saw an increase, that year by 1.2%. The modeling demonstrated a change in commercial brokerage activity that could be seen two quarters later as measured by net absorption in the industrial and office sectors, and the value of building construction put-in-place on completion of retail, office, warehouse and lodging structures. For previous GlobeSt.com coverage on the launch of the index, click here.
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