Commercial Rents Services Price Index (CRSPI)

Detailed information for third quarter 2022

Status:

Active

Frequency:

Quarterly

Record number:

5123

The Commercial Rents Services Price Index (CRSPI) measures the change over time in the lease rates of commercial building space in Canada.

A detailed methodology for the CRSPI is available in the Prices Analytical Series found at:
https://www150.statcan.gc.ca/n1/pub/62f0014m/62f0014m2020015-eng.htm

Data release - November 28, 2022

Description

The Commercial Rents Services Price Index measures the change over time in the net effective rent for occupied commercial building space in Canada. The estimates are produced on a quarterly basis. Prices collected are the average rents, measured in price per square foot, for a sample of commercial buildings. The price index for the industry can be used in conjunction with other service price indexes to monitor inflation and is also used by the Canadian System of National Accounts to deflate this sector of the economy.

Reference period: The period for which the Commercial Rents Services Price Index equals 100; currently this is 2019.

Collection period: Monthly prices are collected quarterly, at the beginning of the quarter following the reference quarter.

Subjects

  • Business, consumer and property services
  • Prices and price indexes
  • Rental and leasing and real estate
  • Service price indexes

Data sources and methodology

Target population

The target population consists of all active establishments leasing retail, office, or industrial and warehouse buildings in a given month and classified to code 531120 - Lessors of non-residential buildings (except mini-warehouses) according to the North American Industry Classification System in Canada, engaged in the provision of space to others for rent. Rental space used as a residence, dwelling or Mini-warehouse is excluded from this definition.

Instrument design

Questionnaire modifications are ongoing. Pricing methodologies and questionnaire design were researched and developed based on international practices and improved through the efforts of Statistics Canada's Questionnaire Design Resource Centre. Focus groups with respondents were also conducted.

Sampling

This is a sample survey with a cross-sectional design and a longitudinal follow-up.

A probability sample of establishments of various sizes, classified to code 531120 - Lessors of non-residential buildings (except mini-warehouses) according to the North American Industry Classification System (NAICS) was selected across Canada, from a Statistics Canada internal statistical survey frame (Business Register). The sample tracks over 700 buildings across the country.

Frame
The sampling frame is drawn from Statistics Canada's Business Register for all establishments classified to code 531120 - Lessors of non-residential buildings (except mini-warehouses) in Canada, engaged in the provision of space to others for rent.

Sampling unit
Non-residential buildings (retail, office, or industrial and warehousing), based on their predominant source of leasing revenue and assigned to a geographical region, are identified as the sampling unit.

Stratification method
Sampling units are divided in three strata based on 2018 establishment revenue: take-all, take-medium, and take-small.

Data sources

Responding to this survey is mandatory.

Data are collected directly from survey respondents.

Data is collected from respondents through an electronic questionnaire, while telephone correspondence (computer-assisted telephone interviewing) is used for non-response and partial data follow-up.

View the Questionnaire(s) and reporting guide(s) .

Error detection

Error detection is conducted both at the time of collection and during post collection editing, through a system of data validity specifications. Failing records are reviewed for editing and correction when necessary.

Imputation

Missing price data for a lessor are imputed using parental imputation.

Estimation

Source of weight data
The Commercial Rents Services Price Index (CRSPI) weights for aggregation are establishments' revenue in the population at the time of sample selection. The establishment revenue data are derived from Statistics Canada's Business Register. There are two sets of weights associated to each sampling unit: the economic weight and the design weight. The economic weight is the establishment's revenue at the time of sample selection. The design weight is the inverse of the establishment's selection probability; this is the weight induced by the sample design. The product of the economic weight and the design weight represents the relative importance of the corresponding sampling unit in the population.

Weight reference period
The weight reference period is currently 2018.

Weight update frequency
Weights are updated when a new sample is drawn, typically every five years.

The CRSPI encompasses both elemental and aggregate indexes. The elemental index measures the month-over-month change in prices received by lessors, grouped by geography (CMA and non-CMA), sector (retail, office, industrial), and size stratum from the sampling process. These elemental indexes are calculated with a geometric Young index.

The CMA-level indexes are a weighted average of the elemental indexes for each CMA, calculated with a Laspeyres index. The building-level indexes for each province are calculated the same way, except the outer sum is taken over geographies instead of sectors.

The provincial-level and Canada-level indexes are a weighted average of the building-level indexes. As with the lower-level indexes, these indexes are calculated as a Laspeyres index.

The quarterly CRPSI is calculated as the average of the monthly index values for each month in a quarter.

Linking
With the introduction of a new basket, historical estimates are linked to the new basket by maintaining the same historical period-to-period changes. This is done by calculating a link factor for each index series as the ratio of the new index series (2019=100) in the overlap period to the old index series (2011=100). This link factor is then applied to the old index series to bring it up or down to the level of the new index series.

The overlap period for CRSPI is currently December 2018.

Quality evaluation

The data is subject to collection and processing validations on all key variables and non-essential data. Analysis is then performed at the index level at all aggregation stages. Quality evaluation is achieved using an internationally developed service and producer price framework that considers aspects such as the type of price being used, timeliness and relevance.

Disclosure control

Statistics Canada is prohibited by law from releasing any information it collects which could identify any person, business, or organization, unless consent has been given by the respondent or as permitted by the Statistics Act. Various confidentiality rules are applied to all data that are released or published to prevent the publication or disclosure of any information deemed confidential. If necessary, data are suppressed to prevent direct or residual disclosure of identifiable data.

Collected data are converted to price indexes and data are released as such, so that it is not possible to identify the suppliers of raw prices.

Revisions and seasonal adjustment

Data for the most recent quarter are preliminary. The previous quarter of the series is subject to revision. The index is not seasonally adjusted.

Data accuracy

The survey uses a methodology designed to control for errors and reduce their potential effects on estimates. However, the survey results remain subject to both sampling and non-sampling error.

Sampling error results when observations are made only on a sample and not on the entire population. All other errors arising from the various phases of a survey are referred to as non-sampling errors.

Response rate
The average quarterly response rate for lessors in the survey for 2019 was 80%.

Non-sampling errors
These types of errors can occur when a respondent provides incorrect information or does not answer certain questions; when a unit in the target population is omitted or covered more than once; when an out of scope unit is included by mistake or when errors occur in data processing, such as coding or capture errors. During the survey processing stage, all efforts are made to minimize non-sampling errors.

Non-sampling error detection is conducted both at the time of data collection and during post collection processing, using a set of systematized error detection procedures to identify outliers and possible reporting anomalies. Records that fail these edits are reviewed for editing and correction when necessary or may trigger a follow-up with the respondent.

Non-response bias
A systematized imputation process is used to impute for the non-response portion of the sample, achieving an effective 100% coverage. Non-response bias is also minimized during the same process.

Coverage error
This methodology does not apply.

Other non-sampling errors
This methodology does not apply.

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