Jacksonville Office Market Continues to Strengthen

JACKSONVILLE, FL— A lack of new construction, coupled with economic expansion, will lead to another year of improvement in the Jacksonville office market, according to the 2008 National Office Report by Marcus & Millichap, the nation’s largest real estate investment services firm. Job growth, led by additions in the trade, transportation and utilities sector, should drive local economic expansion.

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. Jacksonville moves up six places this year to No. 21.

“The Jacksonville investment market will remain active throughout 2008, as buying activity is driven by investors seeking to place capital within an improving metro,” says Steven M. Ekovich, (photo at right) regional manager of Marcus & Millichap’s Jacksonville office.

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

· Local employers are expected to increase payrolls 1.2 percent in 2008 with the addition of 7,800 positions.
· Nearly 33,000 square feet of space is expected to come online in 2008.
· Vacancy will decline 70 basis points to 14.1 percent by year-end 2008.
· Asking rents are forecast to rise 4 percent to $18.94 per square foot, while effective rents are anticipated to climb 4.1 percent to $15.72 per square foot.
· Investment activity should remain most active in the southern part of the metro as buyers focus on acquiring assets near residential expansion in St. John and Clay counties.

In the 2008 NOI, Seattle (photo at right) 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/.

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/