Long-Term Outlook Remains Positive for Baltimore's Apartment Sector

BALTIMORE, MD — While an uptick in supply and cooling economic growth are expected to moderate near-term improvement in Baltimore’s apartment fundamentals, the long-term outlook remains positive, according to a first-quarter Apartment Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm.

Construction activity is forecast to rise nearly 31 percent in 2008, with builders adding 1.3 percent to inventory.

“Despite some short-term fundamental weakness, Baltimore’s apartment market is poised to remain strong in the long term,” says Gary R. Lucas, (top right photo) regional manager of the Baltimore office of Marcus & Millichap.

Following are some of the most significant aspects of the Baltimore Apartment Research Report:

· Employers are predicted to expand payrolls by 0.6 percent, or 6,600 positions, this year.

· Approximately 1,700 units are forecast to come online in 2008, up from the delivery of 1,300 units last year.

· Vacancy is forecast to end the year at 5.5 percent.

· Asking rents are expected to advance 3.7 percent to $1,002 per month, while effective rents will climb 3.9 percent to $968 per month.

· Properties near Fells Point will record some increased investment activity as a result of ongoing mixed-use redevelopment efforts.

For a copy of the complete Baltimore Apartment 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