Jan 17, 2016 - 0 Comments - Observations -

Federal Reserve Releases Beige Book – District 6 Comments Relevant to Miami Commercial Real Estate

FRB-Beige_Book-2016-01-13-page-001-bdrThe Federal Reserve has released its Beige Book Summary of Commentary on Current Economic Conditions by Federal Reserve District.  A number of comments for district 6, which Florida and thus Miami is a part of, relative to commercial property or real estate in general were included:

Residential real estate brokers and builders noted mixed sales activity for both existing and new homes. Home prices rose modestly and inventory levels were relatively flat. Commercial real estate contacts reported increased activity in nonresidential construction, and apartment construction remained robust.

Feedback from District real estate contacts was slightly less optimistic since the last report, although several attributed the softening conditions to seasonal factors.

Many builders continued to indicate that construction activity was up from the year-ago level. In addition, most reported that home sales were flat to slightly up relative to one year earlier. Meanwhile, reports on home sales and traffic from brokers were mixed.

District commercial real estate brokers continued to report rising demand that resulted in increased absorption and higher rents across property types, but they cautioned that the rate of improvement varied by metropolitan area, submarket, and property type. Most commercial contractors indicated that nonresidential construction activity was slightly up from one year ago, with all reporting a backlog greater than or equal to the previous year. Reports on apartment construction suggested that activity remained robust. The outlook among District commercial real estate contacts remains positive, with most expecting the pace of construction activity to increase slightly over the next quarter