The U.S. commercial real estate market has sent mixed signals recently, despite cautious optimism about recovery progress present, according to the U.S. Federal Reserve's Beige Book.
Construction activity rose marginally in both the Minneapolis and Kansas City regions, and showed some stronger gains in Boston. In addition, the report noted that Atlanta did not have a major construction change in July when compared with the same point last year. Chicago witnessed a heightened demand. Cleveland was one of the top cities in this category, as it experienced a significant increase compared to last summer.
Demand for purchases increased slightly in the Atlanta, St. Louis and Boston markets, while it rose markedly in San Francisco. Philadelphia and Dallas did not experience significant changes in transaction activity demand. New York and Richmond both had improvements in this category, but neither were overwhelming.
Despite the assorted results from major markets nationwide, the commercial real estate market has made some strides, overall, and this could continue in the coming months, the report added. Much of the improvements may be linked to slow, but steady economic growth.