Federal Reserve: U.S. Economy, Commercial Real Estate Generally Improving

U.S. economic and commercial real estate activity expanded somewhat between early October and mid-November, the Federal Reserve’s Beige Book reported yesterday.

Multifamily construction reports were mixed but commercial real estate construction expanded in most districts, the Fed said. 

“Commercial construction activity moved higher in the New York, Cleveland, Richmond (Va.), Atlanta, St. Louis, Kansas City and San Francisco districts,” the Beige Book said. But it noted that the Minneapolis district reported slowing commercial real estate construction. 

“The Boston, Richmond, Minneapolis and San Francisco districts reported increases in [CRE] leasing activity, while Philadelphia noted a lull in nonresidential leasing growth compared with the prior period,” the Fed said. The Dallas district reported mostly unchanged leasing activity. 

Commercial real estate sales activity remained “robust” in the Minneapolis district and grew modestly in the Kansas City area. 

The Fed reported “steady” multifamily construction in the New York district, but said apartment property construction varied in the Atlanta district and slowed somewhat in the Richmond, Minneapolis and San Francisco districts.