Demand Eases for Miami Office Properties but Investors Focus on Assets with Strong Tenant Mix

(Above, Biscayne Bay Bridge, connecting Miami with Miami Beach.)

MIAMI, FL — Strengthening ties to foreign economies support a positive long-term outlook for the Miami-Dade County office market, according to a second-quarter Office Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm.

Demand is slackening in response to a loss of office-using jobs, especially in the professional and business services sector.

“Investors will continue to focus on assets with a strong mix of tenants, minimal competition from new supply and locations near primary transportation routes,” says Kirk Felici, (top right photo) regional manager of the Miami office of Marcus & Millichap.

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

· Builders will deliver 400,000 square feet of office space this year.

· Vacancy is forecast to end the year at 10.2 percent.

· Asking rents are projected to advance 3.7 percent in 2008 to $30.06 per square foot.

· Effective rents are expected to tack on 2.8 percent to $25.64 per square foot.

· Demand for Class B properties increased 29 percent in the past 12-month period.

For a copy of the complete Miami Office Research Report, as well as reports on other markets nationwide, visit our website at http://www.marcusmillichap.com/.

With more than 1,300 investment professionals in offices nationwide, Encino, Calif.-based Marcus & Millichap Real Estate Investment Services is the largest commercial real estate brokerage in the nation focusing exclusively on real estate investments.

In 2007, the firm closed $20.7 billion in transactions. Founded in 1971, the firm has perfected a powerful system for marketing properties that combines product specialization; local market expertise; the industry’s most comprehensive research and analysis capabilities; state-of-the-art technology; and established relationships with the largest pool of qualified investors nationally.

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

http://www.marcusmillichap.com/