Moderate Economic Growth Supports Demand for Office Space in Los Angeles

LOS ANGELES — Modest economic expansion in 2008 will continue to support tenant demand for office space in os Angeles County, according to the 2008 National Office Report by Marcus & Millichap, the nation’s largest real estate investment services firm. Employers are expected to add jobs at a fairly steady pace, and the metro will record another year of positive absorption, albeit more modest than in recent years.

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. Los Angeles moves down two places this year to No. 5.

“Office investors will continue to target assets in Los Angeles County this year, however, velocity may slow due to tighter underwriting standards,” says Scott Lamontagne, regional manager of Marcus & Millichap’s Los Angeles office.

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

· · Employers are forecast to create 23,000 positions.
· · Deliveries are expected to total 2.1 million square feet.
· · Vacancy is projected to end the year at 9.6 percent.
· · Asking rents are forecast to reach $34.74 per square foot, a gain of 6.8 percent, while effective rents will rise 7.1 percent to $30.31 per square foot.
· · Properties in the San Fernando Valley will remain popular with investors again this year.

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. For a copy of Marcus & Millichap’s National Office Report and the complete NOI rankings, visit 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: 925.953.1710www.marcusmillichap.com