Despite Downturn, Some Positive Retail Trends Stand Out in Palm Beach County

WEST PALM BEACH, FL — Long-term growth prospects for Palm Beach County remain intact, but an ongoing housing and economic slump is reducing demand for retail space, according to a third-quarter Retail Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm.

Some positive trends are discernible in the current data.

Supply growth remain limited; with an excessive amount of new space sitting unoccupied, marketwide vacancy and rent growth should turn around quickly once the local economy bounces back.

“Investors will likely become active in the coming months, seeking well-positioned, well-maintained multi-tenant properties to purchase ahead of the market’s eventual upturn,” says Gene Berman, (top right photo) managing director of the Fort Lauderdale office of Marcus & Millichap.

Following are some of the most significant aspects of the Palm Beach County Retail Research Report:

· Employers are expected to reduce payrolls by 9,000 positions this year, a 1.5 percent decrease.

· Roughly 900,000 square feet of retail space is scheduled for delivery in 2008, following the addition of 1.4 million square feet last year.

· The average vacancy rate is forecast to rise 190 basis points this year to 9.1 percent as some retailers defer expansion plans and other close locations.

· Asking rents are projected to drop 1 percent to $22.64 per square foot.
· Effective rents will retreat 1.9 percent to $20.26 per square foot.

For a copy of the complete Palm Beach County Retail Research Report, as well as reports on other markets nationwide, visit our website at http://www.marcusmillichap.com/.

Press Contact: Stacey Corso, Communications Department, (925) 953-1716