In General, Commercial Real Estate
Experiencing Modest Growth
The New York Times reports that commercial real estate growth in the Federal Reserve's 12th District has been modest, but the market is growing and moving upwards.
According to this breakdown, the modest but steady growth of the economy is contributing to the same type of action in the housing market and in commercial real estate as well.
New York Times - "Because of stronger automobile sales and a solid start to summer tourism, commercial and residential real estate prices rose with stronger sales. The economy grew at a modest pace. Housing market and commercial real estate conditions have improved."
If our previous two reports on commercial real estate were at opposite ends of the spectrum, this one is somewhere in the middle and is probably the best reflection of what's really going on "out there": modest growth at a steady pace with no real reasons for frenetic excitement of nihilistic doom and gloom.
In our opinion, that's actually a good thing. Over the last few years, we've seen where market extremes ... either way ... can lead. A commercial real estate market based on slow but steady growth looks to us like a welcome situation.