Federal Reserve October Beige Book Published; Shows Positive Expansion
The recently published Federal Reserve Beige Book (October 19, 2016) for the Eleventh District continues to show positive expansion of the Dallas-Fort Worth commercial real estate market in most sectors. Office leasing activity is noted as solid with rents up and construction activity elevated over previous year estimates. By contrast, Houston is continuing its decline in office occupancy and sublease space is elevated. Apartment demand also continues its onward march in the DFW market with rents rising and occupancy at healthy levels. In fact, DFW had the fastest year over year growth among major markets. The Houston apartment market, on the other hand, is continuing to decline with downward pressure on rents and occupancy.
For the residential markets, the results are mixed. Dallas-Fort Worth continues to be a bright spot, but sale volumes are somewhat inconsistent with demand slowing at the higher price points. Austin is showing a slight uptick in new home sales. The Houston residential market is continuing the softness noted in previous quarters.
Overall, economic activity continues to expand in the Eleventh District. Reports of employment growth are more positive than in previous quarters with many employer reporting hiring.
How long will the positive reports continue? How much impact will the election results have on our local economy? Stay tuned…
