Sunday, August 31, 2008

Firms Relocating to Downtown Milwaukee Stimulate Office Sector

MILWAUKEE, WI — The Milwaukee economy is undergoing a change from manufacturing to more service-oriented industries, but the transition will take several years, according to a second-quarter Office Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm.

There are bright spots, however, such as the Downtown submarket, where local companies like Roundy and Manpower are moving in from the suburbs

(Colby Abbot Building, Downtown, top right photo. 735 Water office building, middle left)

“While investment activity may moderate further through the second half of the year, buyers with market knowledge will likely continue to target assets with repositioning or value-add opportunities, particularly in the suburbs,” says Matthew Fitzgerald, regional manager of the Milwaukee office of Marcus & Millichap.

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

· Developers are on pace to add 900,000 square feet of office space to the Milwaukee metro this year for a 3 percent stock increase.
· Vacancy is forecast to end the year at 15.8 percent.
· Asking rents are expected to gain 0.4 percent to $19.08 per square foot.
· Effective rents will end the year at $15.24 per square foot.
· The median price has appreciated roughly 15 percent to $111 per square foot during the past year.

For a copy of the complete Milwaukee 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
.

Drop in Jobs and Leasing Spark Vacancy Rise in Northern New Jersey

ELMWOOD, N.J. — A modest decline in office-using employment has been posted so far this year in Northern New Jersey, according to a second-quarter Office Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm.

The pace of job losses has quickened recently, however, setting the stage for higher vacancy and slower rent growth by year end.

“Perhaps reflecting concerns over the near-term direction of the economy and its impact on the local office market, investment activity has slowed in the past few quarters,” says Michael Fasano, regional manager of the New Jersey office of Marcus & Millichap.

“Investors remain interested in Class C properties, however, due to their encouraging long-term performance.”

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

· Approximately 500,000 square feet is slated for delivery this year, including more than 300,000 square feet in Morris County.
· Vacancy is forecast to end the year at 14.7 percent.
· Asking rents is projected to finish the year at $27.35 per square foot, an increase of 2.7 percent.
· Effective rents will rise 2.7 percent to $23.70 per square foot.
· Investor interest in medical assets remains steady, with several deals complete so far this year.

For a copy of the complete New Jersey 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

Office Leasing Activity in East Bay, CA Centered Along Interstate 680 South/Livermore Corridor


OAKLAND, CA— Office market fundamentals in the East Bay are expected to soften modestly through the rest of this year as job losses and the housing market downtown weigh on tenant demand, according to a second-quarter Office Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm.

Rents are forecast to remain essentially flat this year, potentially drawing employers with expiring leases in more expensive Bay Area markets to the East Bay.

“Buyers seeking value-add opportunities may look to the Interstate 680 South and Livermore areas, where a rise in leasing activity among technology companies may prompt owners to raise rents closer to market value,” says Jerry Smith, regional manager of the Oakland office of Marcus & Millichap.

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

· Office construction is projected to total 209,000 square feet this year, compared with 74,000 square feet in 2007.
· Vacancy is forecast to finish the year at 14.5 percent.
· Asking rents are projected to rise 0.2 percent to $27.13 per square foot.
· Effective rents will end the year at $23.05 per square foot.
· The median price has appreciated 7 percent year over year to $233 per square foot, indicating the current flight-to-quality sentiment.

For a copy of the complete Oakland 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

Ties to Energy Sector Lift Oklahoma City's Office Sector


OKLAHOMA CITY, OK — Oklahoma City is expected to maintain fairly solid office fundamentals this year as limited supply additions are offset by modest job gains, according to a second-quarter Office Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm.

The metro’s ties to the booming energy sector should support job growth going forward and will likely curb the market’s exposure to the national economic slowdown.

“The investment outlook for Oklahoma City is bright, given the area’s healthy job growth and modest additions to supply,” says Gary R. Lucas, (top right photo) regional manager of the Oklahoma City office of Marcus & Millichap.

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

· Employers are expected to expand payrolls 1.3 percent this year with the creation of 7,200 positions.
· Builders are anticipated to bring 50,000 square feet of office space online by year end, increasing inventory by 0.3 percent.
· Vacancy is projected to finish the year at 15.5 percent.
· Asking rents are predicted to reach $14.77 per square foot by year end, a gain of 1.9 percent.
· Effective rents will climb $12.76 per square foot, an increase of 2.5 percent.

For a copy of the complete Oklahoma City 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

West Palm Beach Office Assets Offer Opportunities to Out-of_State Investors


PALM BEACH, FL— Properties scheduled to come online this year in Palm Beach County will test the market’s capacity to absorb new space at a time when declining employment is weakening demand, according to a second-quarter Office Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm.

Overall, supply growth in 2008 will be a significant factor behind an increase in vacancy of nearly 300 basis points.

“A slowdown in the rate of price appreciation may provide an attractive entry point for some out-of-state investors, who have been less active in the market recently,” says Gene A. Berman, (top right photo) regional manager of the Fort Lauderdale office of Marcus & Millichap.

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

· In 2008, developers will deliver 1.4 million square feet of for-lease office space, including the new headquarters building for Office Depot.
· Vacancy is forecast to end the year at 14.3 percent.
· Asking rents are projected to advance 2.7 percent to $29.67 per square foot.
· Effective rents will add 1.1 percent to $24.88 per square foot.
· The median price of office assets changing hands in the last year has gained 2 percent to $224 per square foot.

For a copy of the complete Palm Beach 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

Attractive Pricing Lures Out-of-State Office Investors to Indianapolis

INDIANAPOLIS,IN — Indianapolis’ economy and office market are proving to be more resilient than those in many other Midwestern metros, which have recorded significant payroll contractions and decreased employer interest during the past year, according to a second-quarter Office Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm.

This strength is evidenced by steady office-using employment growth, a trend that is expected to persist in the short term.

“The market’s above-average cap rates, currently in the low- to mid-8 percent range, will continue to attract out-of-state buyers, as Indianapolis offers a yield premium during coastal and larger Midwestern metro areas,” says Josh Caruana, sales manager of the Indianapolis office of Marcus & Millichap.

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

· Employers are forecast to add nearly 2,800 new positions in 2008 for an expansion of 0.3 percent.
· Developers will complete 210,000 square feet of office space, increasing metro stock by 1 percent.
· Vacancy is projected to finish the year at 15.4 percent.
· Asking rents are predicted to rise 0.4 percent to $17.79 per square foot.
· Effective rents will gain 0.1 percent to $14.85 per square foot.

For a copy of the complete Indianapolis 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

Rent Gains Remain Solid, Although San Francisco Office Market Shows Signs of Slowing

SAN FRANCISCO, CA — Fundamentals in the San Francisco office market are expected to reach more sustainable levels in 2008, following a year of robust leasing activity, according to a second-quarter Office Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm.

Rent gains will be among the highest in the country, ending the year up nearly 50 percent from 2004.
“Transaction velocity is expected to wane from the levels recorded in 2007, though healthy fundamental growth will still drive investor interest in the metro’s office assets,” says Jeffrey Mishkin, (top right photo) regional manager of the San Francisco office of Marcus & Millichap.

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

· Payrolls are forecast to increase 1 percent, or by 10,000 jobs, in 2008.
· Developers are projected to complete approximately 1.4 million square feet of competitive office space this year, a 1.6 percent increase.
· Vacancy is predicted to end the year at 9.5 percent.
· Asking rents are forecast to increase 7.7 percent to $43.24 per square foot.
· Effective rents will end the year at $37.16 per square foot, an 8.1 percent rise.

For a copy of the complete San Francisco 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

Johnson-Laux Construction expands operations into Maryland following award of Adventist HealthCare project in Rockville, MD

ORLANDO, FL – A leader in providing mission-critical healthcare construction and meeting its unique requirements, Orlando-based Johnson-Laux Construction has expanded operations into Maryland following its recent award of an Adventist HealthCare project (top right photo) in Rockville, MD.

Johnson-Laux President and LEED Accredited Professional Kevin Johnson said the company will establish a permanent office to serve the greater Potomac region in connection with its work on the Shady Grove Adventist Hospital Pharmacy project.


Contact: Kenneth H. Cristol, 407-774-2515