However, inventories remain generally in balance. Several contacts noted that lower priced or starter homes are the strong sellers in their market. Commercial real estate markets remain healthy throughout the region. Most suburban and central business district office markets are recording rising occupancy rates and rentals, and a considerable amount of speculative office construction is underway. The industrial sector has begun to show some signs of slowdown, as new supply and vacancy rates move up in several markets.
Retail markets remain healthy across most of the region.
Overall, both developers and real estate agents' outlooks remain optimistic for the year. Manufacturing Factory activity varied by industry. Contacts note further slowing in the region's apparel sector, with the closure of one large plant and declining orders for others. More positively, the outlook has improved for a plywood producer and a manufacturer of building products that experienced the factory workweek and shipments weakness not long ago. In Louisiana, oil field projects are maintaining a steady pace, and there is an overall optimistic outlook for the industry.