Strong Energy Sector Drives Increased Office Development in Houston

HOUSTON, TX — Houston’s office market will post a rise in vacancy in 2008 after four years of healthy improvement, according to a second-quarter Office Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm.

The office outlook remains strong, and both employment growth and rent increases will be near the top in the nation again in 2008.

“With Houston’s local economy remaining one of the healthiest in the country, local investment activity will continue to be robust through the end of 2008,” says Michael Hoffman, (top left photo) regional manager of the Houston office of Marcus & Millichap.

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

· Employers in Houston are forecast to add 50,000 jobs this year, expanding payrolls by 2 percent.
· The delivery of 3.3 million square feet of space this year will add about 2 percent to marketwide inventory.
· Vacancy is forecast to end the year at 12.6 percent.
· Asking rents will expand at a healthy 9 percent to $24.21 per square foot.
· Effective rents are expected to climb 8.5 percent to $20.85 per square foot.

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

(JP Morgan Chase Tower, top right photo. Bank of America Center, bottom left)

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