The Federal Reserve’s December Beige Book report suggests that office-leasing activity in New England is expanding at a somewhat slower pace than it was six weeks ago. It portrays Hartford office leasing activity as light but other segments doing well.
In Hartford and Portland, Maine investment demand for commercial property reportedly remains solid, but a Hartford contact told the Beige Book that bid prices have been somewhat more cautious in recent weeks. The outlook for commercial real estate activity remains weak for Hartford, with an emphasis on downside risks to employment growth.
Median sales prices in the condo market are mixed; some states saw modest increases and others saw modest decreases relative to last year. Connecticut fares differently than the rest of the Federal Reserve Bank’s Boston district when it comes to condominium sales. The report said closed sales are up year-over-year in every state except Connecticut.
The report, issued approximately every six weeks, said although most retail and manufacturing respondents cite revenue increases from a year earlier, slightly more contacts in those sectors report declines in sales
Two significant retail developments close to Hartford are under discussion, but a local contact doubts that both will be funded based on their proximity to each other and to existing retail centers. The plans referenced are a proposed outlet shopping center in Windsor Locks near Bradley International Airport and an outlet mall at Rentschler Field.
Median sales prices for single family homes are rising or stable year-over-year across the board. In Connecticut the market is described as stable. That’s consistent with an earlier report that shows Greater Hartford home value increases lagging behind the national average.
In hiring news, the Beige Book said some firms say they are providing larger wage increases than in the past few years to most or to selective job categories to retain existing employees; others are not. Half of respondents across sectors are holding employment steady and most others plan to do modest net hiring.
