Saturday, July 18, 2009

Los Angeles Office Market to Outperform Other Major Metros

LOS ANGELES, CA— While employers continue to trim payrolls throughout Los Angeles County, the local office market should outperform most of the country’s major metro areas through the rest of this year and into 2010 due to modest inventory growth, according to a second-quarter Office Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm.

Approximately two-thirds of the metro’s 2009 scheduled deliveries have already come online, and the countywide vacancy rate has remained fairly tight.
“Investment activity in the Los Angeles office market has cooled considerably in the past year as buyers and lenders assess the impact of continued economic contraction on future property cash flows,” says Stephen Stein, (top right photo) regional manager of the Los Angeles office of Marcus & Millichap.

Following are some of the most significant aspects of the Los Angeles County Office Research Report:

· Employment losses in Los Angeles County are expected to total 121,000 positions in 2009, a 3 percent decline. Cuts in the metro’s office-using sectors will amount to 41,000 workers, or a decrease of 4.1 percent; in 2008, 46,600 office-using jobs were shed.

· Approximately 1.2 million square feet of office space is expected this year, down from nearly 1.4 million square feet in 2008. Deliveries have averaged 1.1 million square feet annually over the past five years.

· Negative net absorption of 4.2 million square feet is forecast by year end, fueling a 270 basis point vacancy rise to 13.6 percent. Last year, vacancy increased 310 basis points.

· As vacancy continues to creep higher, asking rents are forecast to dip 4.6 percent this year to $32.88 per square foot. Concessions will be used to a greater extent, driving down effective rents 6.6 percent to $27.36 per square foot.

For a copy of the complete Los Angeles County Office Research Report, as well as reports on other markets nationwide, visit our website at

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

Marcus & Millichap Sells 24-Unit Apartment Building in Tampa, FL

TAMPA, FL – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has announced the sale of La Hacienda Apartments, (bottom left photo) a 24-unit apartment property located in Tampa, FL, according to Bryn D. Merrey, Regional Manager of the firm’s Tampa office.

The asset commanded a sales price of $500,000.

Evan P. Kristol, Senior Vice President Investments and Still Hunter, III, First Vice President Investments, of Marcus & Millichap’s Ft. Lauderdale office and Francesco Carriera, (top right photo) an Investment Specialist in the firm’s Tampa office had the exclusive listing to market the property on behalf of the seller, a bank/financial institution.

“This lender-owned property was approximately 50 percent occupied and had significant deferred maintenance. Several units had missing appliances and needed renovation in order for them to be rent-ready. There were multiple offers on the offering, several of which were in an all-cash position” states Carriera.

“The property sold to a local buyer who was looking for an add value opportunity to add to his portfolio. After several weeks of marketing and a best and final request, the best bidder agreed to pay $500,000 in cash and put up a $75,000 non-refundable deposit with an executed contract.

The buyer closed on the property within 30 days from the effective date” added Carriera.

La Hacienda Apartments is a 24-unit apartment community located at 1503-1515 East 140th Avenue in Tampa, Florida.

Press Contact: Bryn D. Merrey, Regional Manager, Tampa, (813) 387-4700