Fed Sees Rising CRE Activity

The Federal Reserve Board is noticing increased activity in the long-slumbering commercial real estate sector, according to the Fed's Beige Book."Commercial real estate conditions strengthened in most districts in December and early January," the Beige Book says. Real estate agents reported increased leasing activity in the Dallas, New York, San Francisco, and St. Louis Federal Reserve bank districts, particularly for office space. "Adding to the positive trend, commercial construction was higher since the last Beige Book report," the Fed said. The Fed also noted reports of "slower residential mortgage lending" and "some slowing" of residential sales and construction. However, "residential real estate activity generally remained strong," the Beige Book says.