Despite Short-Term Rise in Miami Office Vacancy, Investors Brace for Long-Term Recovery

MIAMI — Softer demand will result in a higher vacancy rate and a more moderate pace of rent growth in Miami-Dade County this year, although conditions remain relatively healthy, according to the 2008 National Office Report by Marcus & Millichap, the nation’s largest real estate investment services firm. Vacancy will rise this year, but the long-term outlook is positive, as demand is expected to rebound in 2009.

Also included in the report is the firm’s annual National Office Index (NOI), a snapshot analysis that ranks 43 office markets based on a series of 12-month forward-looking supply and demand indicators. Miami moves down six places this year to No. 23.

“Properties located in infill areas in North Miami-Dade County, Hialeah and Kendall will become attractive defensive investments due to the area’s histories of steady tenant demand and difficulty adding new supply,” says Kirk A. Felici, regional manager of Marcus & Millichap’s Miami office.

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

· Local employers are projected to add 10,300 workers in 2008, a 1 percent increase.
· Builders are expected to complete 600,000 square feet of for-lease space.
· Vacancy is forecast to end the year at 9.7 percent.
· Asking rents are forecast to advance 4.6 percent to $30.32 per square foot.
· Effective rents will add 4.1 percent to $26.01 per square foot.

In the 2008 NOI, Seattle moved up three places to secure the No. 1 spot, surpassing last year’s leader New York City, which slipped to No. 2. Boston moved up two spots to No. 3, while San Francisco jumped 12 places to the No. 4 position. Los Angeles slipped two spots, coming in at No. 5. For a copy of Marcus & Millichap’s National Office Report and the complete NOI rankings, visit http://www.marcusmillichap.com/.

CONTACT:
Stacey Corso
Public Relations Manager
Marcus & Millichap

2999 Oak Road
Suite 210
Walnut Creek, CA 94597
Office: 925.953.1716
Mobile: 415.672.6460
Fax: 925.953.1710
http://www.marcusmillichap.com/