Moody's Red-Yellow-Green report is a quarterly update on the well-being of commercial real estate markets that support commercial mortgage backed securities. Cities that had green scores in multiple categories are New York, Orange County, CA; Richmond, CA; Riverside, CA; San Antonio, TX; and Ventura County, CA.
According to Moody's, the CBD office sector nationally can best be described as stable. Absorption is up slightly from last quarter, to +0.6% from +0.3%. The supply pipeline remains a non-threat to most markets--a welcome contrast from the last real estate cycle. Baltimore is also expected to see more robust demand growth in the next year than was expected last quarter. Washington, DC, with a vacancy rate of 7.5%, is the lowest of any of the 46 markets as well as one of only four cities with single-digit vacancy rates. The others are New York City at 8.6%, Charlotte, NC at 9.2%, and Ft. Worth at 9.4%.
Multifamily is hot this quarter. It moved into the greenest-green segment of the matrix with a score of 84. The composite score for neighborhood and community shopping centers remained unchanged at a green 83.
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