Fed: Commercial Real Estate Deteriorating Further, NYC Remains A Dog

Times Square New York NYC

Photo: commons.wikimedia.org

The latest Fed Beige Book is out, and once again it sounds cautiously optimistic, though certainly mixed.One negative area is commercial reale state, an issue that nobody cares about anymore:

Commercial real estate conditions remained weak or declined further in most Districts, although some Districts noted slight stabilisation or modest signs of improvement. Commercial real estate activity weakened in the Richmond, Minneapolis, Kansas City, Dallas, and San Francisco Districts, though Dallas noted that leasing fell at a slower rate and San Francisco cited increased leasing in some segments. Boston and Philadelphia said conditions remain weak, but both noted some improvement in sales of commercial space. New York reported softer activity in the New York City area but some steadying in vacancies and rents elsewhere, while St. Louis said activity remained weak throughout the District. Several Districts also noted that many tenants were pushing for, and in some cases receiving, concessions on rents. All Districts reporting on commercial construction said that activity remained weak or slow, except for some moderate boost from federal stimulus projects and other public construction. Credit for commercial development and transactions was still very difficult to obtain in several Districts, though San Francisco noted a slight improvement in financing availability.

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