Office Market Fundamentals Expected to Stabilize in Louisville

LOUISVILLE, KY — Following three years of improving operations, fundamentals in the Louisville office market are expected to level off through the rest of 2008, according to a second-quarter Office Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm.

Demand for office space persists, driven by healthy office-using employment that is expected to increase by 1 percent this year, significantly outpacing other metros in the region.

“Out-of-state investors have remained active in the metro as a result of attractive yield premiums and continued rent growth,” says Gary R. Lucas, (top right photo) regional manager of the Louisville office of Marcus & Millichap.

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

· Employers are expected to expand payrolls by 0.1 percent, or 500 jobs, this year.

· Developers are on pace to add 200,000 square feet of office space to Louisville this year, boosting metro stock by nearly 1 percent.

· Vacancy is forecast to end the year at 13.8 percent.

· Asking rents are projected to end 2008 at $15.93 per square foot, an increase of 0.9 percent.

· Effective rents will reach $13.07 per square foot, a gain of 0.7 percent.

For a copy of the complete Louisville Office 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