WASHINGTON, DC–The Federal Reserve Bank'slatest Beige Book report offers a mixed-bag ofobservations for the commercial real estate sector. On one hand, itfinds that commercial real estate activity and construction haveimproved since its last report in March. On the other, though, thereport notes there are widespread reports that steel prices haverisen “sometimes dramatically” because of the new tariff. At thesame time, prices for building materials continued to rise briskly,especially for lumber, drywall, and concrete, it said.

The Beige Book also reported that there were scattered reportsof companies successfully passing through prices increases tocustomers in certain industries including construction,manufacturing and transportation but in general businesses areanticipating further price increases in the months ahead,particularly for steel and building materials.