The commercial real estate market and manufacturing sector were the bright spots in the Federal Reserve Bank of Boston’s Beige Book, while the residential market remained weak.
Across the region, commercial leasing activity remains modest, especially in the office sector where job growth has been tepid. Office leasing activity in Boston is described as slow-to-moderate, and some say recent activity is slower than in the first quarter. Boston deals consist largely of tenant renewals, resulting in little net absorption, the report found.
Job security and strict lending are to blame for the delayed recovery in the local residential real estate market, the report found.
The manufacturing category reported the most positive news. "Firms in manufacturing, software and information technology, and staffing services cite ongoing increases in demand, with manufacturers reporting the most strength," the report found.
The beige book cited a parts manufacturer for autos and other vehicles that is struggling to keep up with increased demand.