The latest Federal Reserve Beige Book Report on current economic conditions has been released for the month of June, and it reports that all twelve Federal Reserve Districts saw expanded economic activity. This includes moderate growth in the Boston area! This is great news for the commercial real estate industry, as well as for economic growth and business growth in the Boston Metro area.
Here are some specifics from the report for the Boston Metro area:
- Office leasing activity is stable and demand for space in many Boston Metro areas remains very strong.
- Investor interest in Boston remains very high.
- Planned office construction in Boston increased while multifamily construction slowed, leaving overall construction activity stable year-over-year.
- Business activity continues to increase on a year-over-year basis.
- A regional lender saw an increase in commercial real estate loan volume in recent weeks.
- Outlook for office construction and commercial real estate market growth is optimistic and predicted to be very strong. Construction industry faces potential shortages of qualified workers.
- Manufacturing activity expanded throughout the nation and at a strong pace along the East Coast, including Boston.
- Software and information technology services firms report strengthened business activity through May, with a growth in year-over-year revenue in the 5 to 20 percent range.
- Tourism grew in Boston, noting strong results. Boston hotel revenues were up 4.8 percent year-over-year. Boston restaurants did well, and attendance at museums and attractions were up 3 percent.
- Staffing services indicate activity has picked up in recent months, with quarter-over-quarter revenue increases in the double-digit range! The labor demand increase has mostly been concentrated in the legal, internet technology, production, welding and machine operation industries.
- Bill and pay rates have remained steady, although some contacts note increases in both rates. Contacts remain optimistic and anticipate growth over next few months.
Overall, the Boston Metro area saw increases in construction, tourism and many different industries. Optimism is high for continued construction, job and economic growth.
If you’d like to purchase or lease commercial property in the Boston Metro area, now is the time! I have plenty of listings for you to choose from, and if we don’t have it listed, we can find it for you. If you have questions or you’re ready to get started, as your Boston Metro commercial real estate agents, we’re always here to help you in any way that we can.