Manufacturers mostly appear optimistic or at least hopeful that the coming year will see a continuation of current trends. Respondents selling innovative products and those tapping into growth markets are especially upbeat. The commercial real estate market in New England is doing well. Contacts report high levels of activity in most areas, with generally lower vacancy rates and only small price increases. An exception is the Greater Boston area, where rental rates have increased significantly.
Several contacts express surprise at the lack of new construction, given the high activity levels.
Conditions vary across the region, with a vacancy rate of 5 percent in the downtown Boston office market, and 25 percent in the Greater New Haven office market. After six months of little activity, Maine has reportedly picked up in the third quarter. Rhode Island is also doing well, particularly the industrial and suburban office markets. Conditions in Connecticut are mixed, although vacancy rates have declined slightly. Nonbank Financial Services Respondents at insurance companies report increases in revenue in the range of 10 to 20 percent in the third quarter of 1997 compared to the third quarter of 1996.