RealStake

The Federal Reserve Beige Book, released Wednesday, showed strong commercial real estate activity in most Fed Districts. The Boston market is flat and some suburban New York markets have softened, but nationwide the picture is very good for commercial real estate.

Commercial real estate markets strengthened in many Districts. Atlanta, San Francisco, Philadelphia, and Kansas City reported that demand for commercial real estate has continued to improve. Boston, however, reported that commercial real estate in the Boston area remains flat. Office vacancy rates in most areas of the St. Louis and San Francisco Districts fell and demand for office space picked up in the Philadelphia, Dallas, and Kansas City Districts. Commercial agents expect continued improvement in the office market for the Kansas City District. The New York District reported that lower and midtown Manhattan's office markets continued to strengthen, while most suburban markets slackened moderately. Industrial vacancy rates fell in much of the St. Louis District, and contacts reported that demand for industrial space was on the rise in the Philadelphia and Dallas Districts. Commercial construction has improved in the Chicago District, while commercial construction was generally flat in the Richmond District. The St. Louis District reported that commercial construction remains active.

FRB: Beige Book--Summary--November 30, 2005