Done Deals: Demand Eases for Miami Office Properties but Investors Focus on Assets with Strong Tenant Mix

Monday, August 11, 2008

Demand Eases for Miami Office Properties but Investors Focus on Assets with Strong Tenant Mix

(Above, Biscayne Bay Bridge, connecting Miami with Miami Beach.)

MIAMI, FL — Strengthening ties to foreign economies support a positive long-term outlook for the Miami-Dade County office market, according to a second-quarter Office Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm.

Demand is slackening in response to a loss of office-using jobs, especially in the professional and business services sector.

“Investors will continue to focus on assets with a strong mix of tenants, minimal competition from new supply and locations near primary transportation routes,” says Kirk Felici, (top right photo) regional manager of the Miami office of Marcus & Millichap.

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

· Builders will deliver 400,000 square feet of office space this year.

· Vacancy is forecast to end the year at 10.2 percent.

· Asking rents are projected to advance 3.7 percent in 2008 to $30.06 per square foot.

· Effective rents are expected to tack on 2.8 percent to $25.64 per square foot.

· Demand for Class B properties increased 29 percent in the past 12-month period.

For a copy of the complete Miami Office Research Report, as well as reports on other markets nationwide, visit our website at htt p://www.marcusmillichap.com/.

With more than 1,300 investment professionals in offices nationwide, Encino, Calif.-based Marcus & Millichap Real Estate Investment Services is the largest commercial real estate brokerage in the nation focusing exclusively on real estate investments.

In 2007, the firm closed $20.7 billion in transactions. Founded in 1971, the firm has perfected a powerful system for marketing properties that combines product specialization; local market expertise; the

industry’s most comprehensive research and analysis capabilities; state-of-the-art technology; and established relationships with the largest pool of qualified investors nationally.