Impressive Rent Gains Attract National Investors to Puget Sound Office Market

SEATTLE, WA— Conditions in the Seattle office market will remain tight this year, though new construction will outpace demand growth modestly, leading to an uptick in vacancy, according to the 2008 National Office Report by Marcus & Millichap, the nation’s largest real estate investment services firm. (Seattle skyline photo above)

Buoyed by the technology sector, office-using employment gains will measure well above the national rate again in 2008.

Also included in the report is the firm’s annual National Office Index (NOI), a snapshot analysis that ranks 43 office markets based on a series of 12-month forward-looking supply and demand indicators. Seattle moves up three places this year to No. 1.

“Bolstered by an active pool of investors and a positive economic and demographic outlook, buying activity will remain robust in 2008,” says Gregory S. Wendelken, regional manager of Marcus & Millichap’s Seattle office.

Following are some of the most significant aspects of the Seattle Office Research Report:

· Employers are expected to add 31,000 positions in the metro this year, a 1.7 percent increase.
· Delivery of new space will increase to 3.2 million square feet, boosting overall inventory 4.4 percent.
· Vacancy is forecast to end the year at 9.2 percent.
· Asking rents will advance to $31.71 per square foot, while effective rents climb to $28.29 per square foot, gains of 7.1 percent and 7.4 percent, respectively.
· Investor interest will likely increase for suburban office assets in areas such as the Northend/Snohomish submarket, where spillover leasing activity is expected to pick up this year due to tight conditions and high rents in the adjacent Central submarket.

In the 2008 NOI, Seattle moved up three places to secure the No. 1 spot, surpassing last year’s leader New York City, which slipped to No. 2. Boston moved up two spots to No. 3, while San Francisco jumped 12 places to the No. 4 position. Los Angeles slipped two spots, coming in at No. 5.

For a copy of Marcus & Millichap’s National Office Report and the complete NOI rankings, visit http://www.marcusmillichap.com/.

Pugent Sound skyline photo above)

CONTACT:
Stacey Corso
Public Relations Manager
Marcus & Millichap
2999 Oak Road
Suite 210
Walnut Creek, CA 94597
Office: 925.953.1716
Mobile: 415.672.6460
Fax: 925.953.1710
http://www.marcusmillichap.com/