Fed: Commercial Real Estate Still Sluggish
Commercial real estate activity remained lackluster across most of the nation, the Federal Reserve Board recently reported.
According to the latest Fed’s Beige Book, released Thursday, nearly all of the 12 districts said CRE market activity has not experienced any significant increases.
Atlanta, Boston, Chicago, Cleveland, Dallas, Kansas City, Minneapolis, New York, Philadelphia, Richmond, Va., San Francisco and St. Louis make up the Fed’s districts.
Boston, New York, Chicago, Minneapolis and San Francisco indicated roughly unchanged activity while Philadelphia and Dallas indicated mixed activity. Richmond and St. Louis reported slow activity, although industrial construction had picked up. The Fed said New York and Philadelphia reported generally weak conditions.
Cleveland saw steady to slowly improving commercial construction and Chicago and Minneapolis experienced modest to moderate increases, the Fed reported.
Meanwhile, changes in credit standards and credit quality varied across districts. Philadelphia noted that credit quality continued to improve but at a slower rate. Kansas City saw stable or improving loan quality with Dallas reporting that the quality of loans outstanding continued to improve.
San Francisco saw a slight improvement in overall credit quality and Cleveland, Chicago and St. Louis noted relatively unchanged credit quality. Boston, Richmond and Atlanta saw some tightening of standards, according to the Fed. In New York, bankers reported declining delinquency rates for commercial and industrial loans but no change in delinquencies for other loan categories.