Commercial Real Estate Market Has Few Bright Spots
With just a few weeks left in 2011, it may not be a shocking development that the commercial real estate sector will end the year in a state of stagnation.
The Federal Reserve Board’s Beige Book released Dec. 1 certainly offers proof with nearly all of the 12 districts reporting less than significant increases in market activity.
Chicago reported continued growth in the industrial sector and an uptick in demand for medical and professional office space, while retail construction remained very slow. A slight decline in vacancy rates was also seen throughout the district.
As the case in other districts, industrial construction in St. Louis has shown some signs of improvement. In other parts of the region, commercial construction ranged from slow in southern Indiana to an increase in power plant projects in other parts of the state and Kentucky. St. Louis also reported continued limited commercial and industrial construction activity and expects mainly build-to-suit projects for the remainder of the year.