Columbus Retail Sector Outperforms Other Ohio Metros

COLUMBUS, OH, June 1, 2009 — In the first quarter, Columbus continued to affirm its stature as the top-performing retail market among the state’s three primary metro areas, according to a second-quarter Retail Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm.

(Downtown Columbus, top right photo)

Positive net absorption was posted in Columbus during that time, while retailers in Cincinnati and Cleveland gave back space.

“While fundamentals have been fairly stable, investment activity is subdued,” says Michael Glass, (middle left photo) regional manager of the Columbus office of Marcus & Millichap.

“Despite the current slowdown, the market’s status as a growing Midwestern metro with a diverse employment base and high incomes will generate interest once the economy stabilizes.”

Following are some of the most significant aspects of the Columbus Retail Research Report:

· Employers in Columbus are forecast to cut 19,000 workers this year, a 2 percent decrease. In 2008, 13,400 positions were eliminated in the market. The projected decline in employment will put pressure on incomes and contribute to a drop in retail spending of approximately 5 percent.

· Builders will deliver 500,000 square feet of space in 2009, down from 750,000 square feet last year. Projects scheduled for completion will expand retail property stock 0.5 percent. Overall, stock will decrease with the demolition of City Center Mall in the second quarter.

· The vacancy rate is expected to decline 110 basis points in 2009 to 10.1 percent as a result of stock removal.

· This year, asking rents are expected to fall 2.1 percent to $12.35 per square foot, and effective rents are forecast to slip 3.9 percent to $10.52 per square foot. In 2008, asking and effective rents declined 0.2 percent and 1.1 percent, respectively.

For a copy of the complete Columbus 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