The Atlanta Fed's SouthPoint offers commentary and observations on various aspects of the region's economy.
The blog's authors include staff from the Atlanta Fed's Regional Economic Information Network and Public Affairs Department.
Postings are weekly.
Regional commercial real estate survey reveals some improvement
On December 8, the National Association of Realtors published a blog post in which Lawrence Yun, the organization's chief economist, expressed his outlook for commercial real estate (CRE). His overall message was one of cautious optimism.
In November, we performed a short survey of our regional commercial real estate contacts to ascertain where this sector stood with regard to actual and expected performance. The results, which also show some cautious optimism, are summarized below.
We asked how contacts evaluated conditions in the CRE sector relative to the first part of 2011. A bit less than half of the respondents indicated that conditions in the commercial real estate sector have remained "about the same" relative to the first part of 2011. Approximately a third felt conditions were either "much or somewhat better" than earlier in the year, whereas about 20 percent said conditions were "somewhat worse." No one reported that conditions were "much worse."
Approximately 61 percent of survey respondents expect commercial real estate conditions to remain the same for the next few quarters, while 28 percent expect conditions to improve and 11 percent expect things to worsen.
In terms of purchases of existing properties since the first part of the year, 67 percent say financing has remained the same, while an equal number of respondents reported conditions were either better or worse. As for development and construction of new properties, 61 percent indicated that financing conditions were the same, while 31 percent felt things were worse and only 8 percent said they were better. The majority of respondents indicated that the availability of credit, the ability to refinance, and the loan terms have not changed.
All in all, our survey revealed some modest progress in the region's CRE sector, but it’s also clear that optimism in the Southeast and nationally is modest as well.
By Shalini Patel, senior economic analyst in the Atlanta Fed's research department
TrackBack URL for this entry:
Listed below are links to blogs that reference Regional commercial real estate survey reveals some improvement:
- Southeast Manufacturing Slows in August
- It's Mostly Sunny in Florida
- Auto Manufacturing an Economic Boon for Tennessee
- Southeast Manufacturing Rebounded in June
- Southeast Manufacturing Dips in May
- Assessing the Impact of Oil Price Declines on Louisiana's Economy
- Seeking the Slack
- Middle Tennessee Consumer Confidence on the Rise
- Trials and Tribulations in Transportation
- Southeast Manufacturing: Solid as an Oak
- September 2015
- August 2015
- July 2015
- June 2015
- May 2015
- April 2015
- March 2015
- February 2015
- January 2015
- December 2014
- Banks and banking
- Beige Book
- Business Cycles
- Commodity Prices
- Consumer Savings
- Data Releases
- Disaster recovery
- Economic conditions
- Economic Growth and Development
- Economic Indicators
- Fiscal Policy
- Gulf Coast
- Health Care
- Holiday Sales
- Labor Markets
- Local Economic Analysis and Research Network (LEARN)
- Monetary Policy
- Natural Disasters
- New Orleans
- Oil Spill
- Real Estate
- Sales Tax