Major Retailers Entering Brooklyn Despite Credit Market Turmoil

BROOKLYN, NY — In spite of the current economic downturn, the retail property sector in Brooklyn continues to evolve as noted national and regional retailers seek spaces in an underserved market with 2.5 million residents, according to a second-quarter Retail Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm.

In recent months, brands such as Morton’s Steakhouse, Urban Outfitters, Circuit City and Trader Joe’s have leased space.

“Despite a challenging climate in property financing, taxpayer assets will remain highly coveted by investors seeking to trade out of more management-intensive properties, such as apartments,” says J.D. Parker, (top right photo) regional manager of the Brooklyn office of Marcus & Millichap.

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

· This year, 750,000 square feet of retail space is expected to be delivered, compared with 192,000 square feet in 2007.

· Vacancy is forecast to end the year at 4.7 percent.
· Rents can vary between neighborhoods, but the average asking rent in the entire borough is predicted to climb 9 percent this year.
· New rents on spaces leased to national tenants are expected to rise at a much greater rate.
· In the multi-tenant sector, the median price has advanced 11 percent during the most recent 12-month span to $267 per square foot, compared with a 4 percent gain in the previous year.

For a copy of the complete Brooklyn 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

Kansas City's Retail Market Remains One of Strongest in Midwest

KANSAS CITY, MO— The historically strong Kansas City retail market is anticipated to record long-term growth this year based on favorable demographic patterns, according to a second-quarter Retail Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm.

While other Midwestern metros have posted job losses, out-migration and housing market woes during the past several years, Kansas City’s economy has remained relatively stable. (Downtown Kansas City photo top left).

“Buyers with long-term holding strategies may find opportunities in the southern portion of the submarket, near Gardner, where a new intermodal transportation hub will spur job growth and attract future retail developments,” says Gary Lucas, (top right photo) regional manager of the Kansas City office of Marcus & Millichap.

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

· Builders are set to add more than 3.3 million square feet to local inventory in 2008, up from 1.4 million square feet last year.
· Vacancy is forecast to end the year at 12.5 percent.
· Asking rents are projected to climb 1.3 percent to $14.20 per square foot.
· Effective rents will gain 1.1 percent to $12.40 per square foot.
· The government and educational and health services sectors have each gained almost 2 percent year over year, creating 2,500 and 2,100 jobs, respectively.

For a copy of the complete Kansas City 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

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

Atlanta Retail Sector Slows Due to More Conservative Lending

ATLANTA, GA — A cooling economy, combined with rising instability in the housing market and continued development activity, will cause Atlanta’s retail market conditions to soften through the rest of the year, according to a second-quarter Retail Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm.

The metro’s diverse employment case will post healthy job growth this year, as losses in financial services and manufacturing will be offset by additions in the educational and health services and information sectors.

“Fast-food properties are expected to remain the single-tenant asset of choice for investors in Atlanta,” says John Leonard (middle right photo), regional manager of the Atlanta office of Marcus & Millichap. “Cap rates for all single-tenant assets will likely continue to be fairly stable this year despite the drop off in velocity.”

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

· Employers are expected to expand payrolls by 22,200 positions this year, a 0.9 percent increase.
· Developers are slated to deliver 4.9 million square feet to the market this year.
· Vacancy is forecast to end the year at 9.7 percent.
· Asking rents are predicted to advance 1.1 percent to $17.56 per square foot.
· Effective rents will inch up 0.5 percent to $15.87 per square foot.

For a copy of the complete Atlanta 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

Investors Attracted to Detroit Single-Tenant Retail Properties with National Credit Tenants

DETROIT, MI — The Detroit retail market is going through a period of transition this year as local employers continue to streamline payrolls and the housing market struggles through a correction, according to a second-quarter Retail Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm.

The manufacturing sector is anticipated to get a boost next year.

“The single-tenant investment climate will continue to push through a period of transition in 2008, attracting buyers to mostly national-credit tenants in growing parts of the metro,” says Steven Chaben, (top right photo) regional manager of the Detroit office of Marcus & Millichap.

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

· Builders are slated to add 1.4 million square feet of retail space to the metro in 2008, a 0.8 percent increase to stock.
· Vacancy is forecast to end the year at 11.4 percent.
· Asking rents are expected to end the year at $17.46 per square foot.
· Effective rents will hit $15.79 per square foot this year.
· The educational and health services sector expanded payrolls 2.4 percent year over year, adding 6,500 positions.

For a copy of the complete Detroit 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

Marcus & Millichap Lists Social Security Building in Burbank, CA for $13.65M

BURBANK, CA– Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has retained the exclusive listing for a single-tenant 13,600-square foot office building leased to the Social Security Administration in Burbank.

The listing price of $13.65 million represents $1,004 per square foot.
Kyle Matthews, a senior associate in the Encino office of Marcus & Millichap, is representing the seller.

“As a newly built U.S. government-leased investment in an outstanding Southern California location, this property is an extraordinary opportunity for the astute investor looking for the very best in a low-management, low-risk real estate investment,” says Matthews.

“Beyond the ‘gold standard’ tenancy and superior design, the property features a high-value entertainment industry location, boasting tremendous upside potential at the end of its lease term,” adds Matthews.

Located at 1420 West Olive Ave., the one-story Class A building is situated on a 41,578-square foot lot.

Built in 2007, the property features excellent frontage at the intersection of Olive and Verdugo, which are both major east-west corridors connecting Burbank’s media district in the west to downtown Burbank in the east.

Major studios such as Disney, Warner and Universal, are located in the vicinity.

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