Realtors also generally expect that third quarter sales will be similar to those of a year ago. District commercial real estate markets remain strong. Office markets continue to improve as vacancy rates continue to drop in key District markets and construction continues at a healthy pace. Speculative office construction is underway in several District markets. The weakest segment of the commercial real estate market continues to be multifamily housing.
Several markets report declining occupancy rates and more use of incentives to attract new renters.
However, occupancy rates and rents are expected to rebound by the first of next year, as the pace of new construction slows. Manufacturing Manufacturers gave mixed reports. Most of those contacted said that the U.P.S. strike caused some interruptions of production but none indicated irreparable damage. Apparel jobs continue to shrink except for firms with special niches. Nine Mississippi apparel plants have closed and more than 850 garment worker jobs have been lost in the state this year.