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NAR launches quarterly index to track early commercial space demand
The new index covers 306 U.S. metros and uses a score where 100 is the metro average, with office at 22% and industrial at 28% in the overall weighting.
The National Association of Realtors launched a quarterly Commercial Real Estate Demand Index designed to surface early, local drivers of space demand across 306 U.S. metro areas, an approach intended to help landlords, lenders, and investors look ahead before traditional measures move.
HousingWire reports the index is built from publicly available government data and updated quarterly, combining four property-type subindices that reflect different demand inputs: job growth for office, industrial, and retail, and population and net migration for multifamily.
The overall score is a relative comparison, where each quarter every metro is measured against the other 305 metros in the dataset, with 100 representing the average market. Scores above 100 indicate stronger relative demand drivers, while NAR said a reading below 100 does not necessarily mean contraction.
NAR will publish accompanying quarterly analysis highlighting rankings and shifts by property type, and the index does not directly measure vacancy, rents, absorption, or national level demand, according to HousingWire.