Commercial real estate (CRE) construction and leasing strengthened since mid-October, the Federal Reserve's Beige Book reported in December.
"Commercial construction strengthened modestly in most districts," the Beige Book said. "The Minneapolis district saw continued strong growth, particularly in cities where commercial permitting increased. The Boston, Cleveland, Atlanta, Chicago, St. Louis and San Francisco districts reported moderate commercial construction growth."
Office construction grew modestly in the greater Boston region and demand remained strong in the Cleveland district, while the Atlanta district saw CRE construction increase slightly from a year ago and reported "robust" apartment construction, the Fed said. The Philadelphia; Richmond, Virginia; and Kansas City districts reported modest commercial construction growth.
Construction also increased in most major cities in the Richmond district. In contrast, New York reported little change since the previous report. The Dallas district reported that CRE construction remained active, although construction started to taper off in Houston.
Commercial leasing activity also increased. The Cleveland district reported strong leasing growth, while leasing in the Boston, Richmond and San Francisco districts expanded...