Beige Book: Commercial Real Estate Strong
SOURCE: The Federal Reserve Board
The latest edition of the Federal Reserve's Beige Bookreleased last Wednesday (6/13/2007) repeatedly gave evidence of strength in the commercial real estate market; two excerpts from their summary report are cited below.
"There was continuing weakness in residential real estate and construction but increasing strength in the commercial real estate sector, including both office and industrial space. Half the District banks reported little or no change in overall loan demand, with strength in commercial lending and weakness in residential mortgages and consumer lending."
"There was widespread improvement in commercial real estate markets in recent months. More than half the Districts reported that leasing activity was picking up in most of their major markets and vacancy rates were falling. Boston, New York, Philadelphia, and San Francisco also mentioned increases in office rents. Four Districts (Philadelphia, Richmond, Minneapolis, and Dallas) reported strong demand for industrial space, especially warehouse space. Chicago, on the other hand, reported that industrial warehouse development was sluggish. All the Districts that mentioned commercial construction activity gave positive reports."
The Beige Book, also known as the "Summary of Commentary on Current Economic Conditions by Federal Reserve Districts" is a concise rundown of the national economy by sector for each of the twelve Federal Reserve Districts.
Read full report »
The latest edition of the Federal Reserve's Beige Bookreleased last Wednesday (6/13/2007) repeatedly gave evidence of strength in the commercial real estate market; two excerpts from their summary report are cited below.
"There was continuing weakness in residential real estate and construction but increasing strength in the commercial real estate sector, including both office and industrial space. Half the District banks reported little or no change in overall loan demand, with strength in commercial lending and weakness in residential mortgages and consumer lending."
"There was widespread improvement in commercial real estate markets in recent months. More than half the Districts reported that leasing activity was picking up in most of their major markets and vacancy rates were falling. Boston, New York, Philadelphia, and San Francisco also mentioned increases in office rents. Four Districts (Philadelphia, Richmond, Minneapolis, and Dallas) reported strong demand for industrial space, especially warehouse space. Chicago, on the other hand, reported that industrial warehouse development was sluggish. All the Districts that mentioned commercial construction activity gave positive reports."
The Beige Book, also known as the "Summary of Commentary on Current Economic Conditions by Federal Reserve Districts" is a concise rundown of the national economy by sector for each of the twelve Federal Reserve Districts.
Read full report »
