Fed Finds Commercial Market Stagnant Across Country

The Federal Reserve Bank’s most recent “Beige Book” compilation of market conditions in each of the 12 Fed districts found that only the Mid-Atlantic (Richmond) district reported an increase in commercial real estate. This increase was “mainly in the office segment,” and the bank noted that “Construction in the commercial real estate sector was generally flat, although a smattering of ‘build to suit’ projects were reported.” For the rest of the country, the book’s summary said, “Most Districts continued to report weak commercial real estate markets, with high vacancy rates and lower rental rates.” The Senate is debating a bill to provide backstop insurance for terrorist-caused claims. It’s hoped that such legislation, if enacted, could encourage high-profile construction projects to go forward that are currently stalled by lack, or unaffordability, of coverage.