The last Beige Book report of 2013 has been released. We have been following the Beige Book reports throughout the year – they provide us with a snapshot of the state of commercial real estate in our area and around the country. Reports from the twelve Federal Reserve Districts included in the report showed that, in general, the economy continued to grow from early October through mid-November. Here are the highlights of the report as they pertain to commercial real estate in the Boston area.
- The Boston area reported that economic activity continued to grow and expand from the time of the last report.
- Leasing fundamentals continued to improve slowly, consistent with slow growth of employment.
- In the Back Bay and Seaport District, speculative office construction is starting to occur – a positive sign for the upcoming year.
- The lending environment continues to be appealing to borrowers – interest rates have remained at historically low levels, and lending standards remain loose.
- Construction activity has increased in the retail and hotel sectors.
- Private equity firms, foreign investors, pension funds, REITs and high net-worth individuals have continued to supply investment capital to commercial properties across the area.
In general, those surveyed by the Beige Book report were cautiously optimistic about the future of commercial real estate in the Boston area and across the nation. This is good news for business owners looking to buy or lease commercial space in the Boston Metro area, as they will still be able to take advantage of low interest rates while they last. If you or someone you know is looking for commercial space in Boston’s Metro area, please contact us! My team is ready to help you find your ideal space.