While telecommunications, computers and other high-tech industries are woven into this region's economic fabric, the energy market still dominates much of the economy along the Gulf Coast. A recent Federal Reserve report said demand for petrochemical products was down, but that prices for diesel fuel, natural gas, heating oil and crude oil were increasing.
Layoffs in the telecom industry have rocked Dallas and San Antonio. When SBC Communications laid off several thousand workers in San Antonio at the end of last year, it also put nearly 200,000 square feet of office space onto the local market.
Texas' housing market remains strong, as Austin and Dallas continue to be among the nation's leaders in new housing starts. The state's office construction market is a mixed bag. Dallas is in the doldrums, with 29 percent downtown vacancy rates, but Houston has a 9 percent downtown vacancy rate.
(in millions of dollars)