Expanding Technology Sector Fuels Demand for Office Space in San Jose

SAN JOSE, CA— After several years of restrained office construction, builders in the San Jose metro area are stepping up deliveries in response to a strengthening local economy and a resurgent technology sector, according to the 2008 National Office Report by Marcus & Millichap, the nation’s largest real estate investment services firm.

High-tech employers, including Cisco, Qualcomm and Broadcom, have continued to expand their work forces in the metro, generating tenant demand for additional space.

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. San Jose moves up 11 places this year to No. 13.

“Healthy revenue gains in the local office market will continue to command investors’ attention in 2008,” says Steven J. Seligman, regional manager of Marcus & Millichap’s Palo Alto office.

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

· Employment growth is forecast to reach 0.7 percent, or 6,600 jobs, this year.
· Office completions are expected to reach 1.3 million square feet.
· Vacancy is projected to finish the year at 13.5 percent.
· Asking rents are expected to increase 5.4 percent to $32.72 per square foot, while effective rents gain 5.7 percent to $29.02 per square foot.
· Investors may want to take note of incentives offered by the local government to attract employers to downtown San Jose.

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. Los Angeles slipped two spots, coming in at No. 5.

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

Low Business Costs Attract Corporations to San Antonio's Expanding Office Market

SAN ANTONIO, TX — San Antonio (downtown photo above) is transitioning from an often-overlooked secondary office market to a diversified metro with an increasing number of traditional back-office positions and major corporate operations, according to the 2008 National Office Report by Marcus & Millichap, the nation’s largest real estate investment services firm.

San Antonio’s low business costs will support additional major corporate relocations to the area in the future, followed by support companies.

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. San Antonio moves up three places this year to No. 22.

“The investor pool in San Antonio is expected to become more diversified this year,” says Bradley H. Bailey, regional manager of Marcus & Millichap’s San Antonio office. “REITs will up their stakes in the metro, as will out-of-state investors looking for above-average yields in a stable growth market.”

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

· Employers will create 19,400 new jobs in 2008, a 2.3 percent increase.
· Construction will remain relatively steady this year, with 970,000 square feet forecast to come online, a 3.7 percent increase to stock.
· Demand will outpace supply again this year, causing the metrowide vacancy rate to shed 30 basis points to finish 2008 at 13.7 percent.
· Asking rents are forecast to rise 3.7 percent to $19.57 per square foot, while effective rents advance 4.1 percent to $16.48 per square foot.
· Opportunities can be found northwest of the city center near the rapidly expanding Loop 1604, where demand is currently being generated by companies seeking to relocate closer to residential developments.

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. Los Angeles slipped two spots, coming in at No. 5. (photo of The Alamo landmark at right)

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

Press Contact:

Stacey Corso
Communications Department
(925) 953-1716

San Francisco Office Sector Rises to One of Top-Performing Markets Nationwide

SAN FRANCISCO, CA — The San Francisco office market is enjoying a strong resurgence that is expected to continue through 2008, according to the 2008 National Office Report by Marcus & Millichap, the nation’s largest real estate investment services firm.

Tenant demand for office space is being driven by the expanding information sector, which is forecast to add another 800 jobs this year.

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. San Francisco moves up 12 places this year to No. 4.

“Buyers may find properties with upside potential in the South of Market Area and Union Square submarkets,” says Jeffrey Mishkin, (photo at right) regional manager of Marcus & Millichap’s San Francisco office. “Rents have risen rapidly in surrounding submarkets, including the Financial District and South Beach, and some tenants who are priced out of properties in these areas may move to less expensive regions nearby.”

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

· Employers are expected to add 10,200 jobs this year, a 1 percent increase.
· Builders are forecast to deliver 1.4 million square feet or new office space this year.
· Vacancy is projected to end the year at 9.6 percent.
· Asking rents are forecast to increase 5.8 percent to $42.46 per square foot, while effective rents advance 5.9 percent to $36.52 per square foot.
· With heightened demand for top-tier space in San Francisco, investors may find success upgrading existing properties, as rents continue to rise faster than the national average and elevated land and development costs minimize the threat from overbuilding.

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. Los Angeles slipped two spots, coming in at No. 5.

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

Demand Strengthens for Suburban Office Assets in Salt Lake City

SALT LAKE CITY, UT— Salt Lake City’s office market is expected to remain strong, underpinned by an increasingly tight downtown market that is forcing some demand into suburban areas, according to the 2008 National Office Report by Marcus & Millichap, the nation’s largest real estate investment services firm.

The metro’s educated work force and affordability continue to attract businesses, and 2008 will mark another year of above-average employment growth.

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. Salt Lake City moves up 10 places this year to No. 20.

“The Salt Lake City office investment market is expected to remain active throughout 2008, as the metro’s healthy economic growth continues to attract buyers,” says Adam P. Christofferson, (photo at right) regional manager of Marcus & Millichap’s Salt Lake City.

Following are some of the most significant aspects of the Salt Lake City Office Research Report:

· Employers are expected to add 17,000 positions in 2008, an increase of 2.6 percent.
· Nearly 750,000 square feet of space will come online in the market in 2008.
· Vacancy is projected to end the year at 12.5 percent.
· Asking rents are expected to advance 4.5 percent to $19.03 per square foot, while effective rents will rise 4.8 percent to $15.72 per square foot.
· Investors may want to consider properties in Salt Lake City’s CBD.

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. Los Angeles slipped two spots, coming in at No. 5.

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: 925.953.1710
http://www.marcusmillichap.com/