The Federal Reserve’s January 2025 Beige Book has looked back on late November and December activity and saw economic activity increasing “slightly to moderately” across the central bank's 12 districts. As part of that, CRE sales “edged up,” although construction activity slowed because materials and financing costs weighed on growth.

While general observations, these didn’t apply evenly everywhere. In Boston, CRE activity was “mostly flat” with long-term interest rates limiting transactions. Some borrowers, hoping for the decline of rates, looked for extensions to maturing loans. Office leasing was slow though prime Boston properties were relatively healthy. A law intended to promote multifamily construction seemed to be working in some parts of the state. About half of people talking to the Fed were “cautiously optimistic” about greater activity in the first quarter; others expected levels to continue or even feel negative effects of higher-for-longer interest rates.

New York saw CRE markets slightly improve for the first time after a long decline. The New York City office market saw increased demand but concentrated in class A buildings in premier parts of midtown Manhattan. Construction declined but at a more modest rate.