Additionally, contacts indicate that home-price increases are slowing, and there is evidence that concessions are on the rise, as are customer negotiations. In contrast to residential real estate markets, the region's commercial real estate markets remain strong. Occupancies are described as healthy, while absorption continues strong. Office space is scarce in several key markets. Speculative office development continues in several parts of the District.
Industrial markets remain tight around the District and new projects continue to be announced.
Retail growth is substantial. Manufacturing Reports from the industrial sector are mostly positive. Growth in the region's auto industry is stimulating production of parts and components. A Tennessee manufacturer of transmissions is adding jobs in an expansion project. In Georgia, a supplier of steering wheels and dashboard components is ramping up production and adding to employment rolls to supply Alabama's new Honda plant.