Healthy Local Economy Supports Retail Property Sector in Charlotte, NC

CHARLOTTE, N.C.— While much of the country continues to register weaker economic conditions as a result of the fallout from the subprime mortgage crisis, the Charlotte retail market remains fairly healthy as employers expand payrolls at a rate that exceeds the national average and home prices appreciate, according to a second-quarter Retail Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm.

Employment growth will soften metrowide this year; however, Charlotte’s affordability and educated work force will attract new firms to the area.

“Retail transaction velocity peaked just over a year ago, and activity and volume appear to have returned to more normal levels, a trend expected to continue through the rest of 2008,” says Gary R. Lucas, (middle left photo) regional manager of the Charlotte office of Marcus & Millichap.

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

· Job growth will total 4,300 positions in 2008, a 0.5 percent employment increase.
· Builders are forecast to complete 1.7 million square feet of retail space this year.
· Vacancy is projected to end the year at 8.3 percent.
· Asking rents are expected to rise 3.2 percent to $18.35 per square foot by year end.
· Effective rents will increase 2.6 percent to $16.23 per square foot.

For a copy of the complete Charlotte 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