Retail Vacancy on the rise in Orlando

ORLANDO, FL — Long-term projections for significant population and employment growth in the Orlando metro remain unchanged, although retail property fundamentals are softening due to sluggishness in the housing and employment markets, according to a third-quarter Retail Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm.

(Mall at Millenia, Orlando, top right photo)

Retailer closures and fewer new store openings produced a subdued level of space absorption during the first six months of the year.

“In the months ahead, investors may want to seek restaurants or convenience stores located near limited-service hotels,” says Bryn Merrey, regional manager of the Orlando office of Marcus & Millichap.

“With cost-conscious travelers trading down to lower-priced accommodations that often do not offer food service, nearby retail properties may post strong operating results.”

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

· Employers in Orlando are forecast to add 2,000 jobs, a 0.2 percent gain.

· Developers are expected to complete 2.9 million square feet of new retail space in 2008.

· Sluggish demand and slower leasing activity will underpin a 170 basis point increase in vacancy this year to 9.8 percent.

· Asking rents are projected to inch up 0.8 percent to $18.79 per square foot.

· Effective rents will drop 0.7 percent to $16.57 per square foot due to easing demand.

For a copy of the complete Orlando 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

Edwards Construction Services ranked 58th largest among 'The Southeast's Top Design-Builders'

OCALA, FL – Edwards Construction Services, Inc., with offices in Ocala, Orlando, and Tampa, is prominently ranked 58th largest among “The Southeast’s Top Design-Builders” according to Southeast Construction magazine published September 2008.

The company, which reported 2007 revenues of $91.7 million, also ranks among “The Southeast’s Top Contractors.”

Edwards provides unrivaled expertise in Construction Management, Design/Build and General Contracting services to leading clients across the Southeast. Its specialties include Manufacturing & Distribution, Residential Amenities, Food & Beverage, Commercial, and Senior Living facilities.

Contact: Kenneth H. Cristol , 407-774-2515

SchenkelShultz Architecture, West Palm Beach, designs new $27M Florida Atlantic University/University of Florida Joint-Use Facility in Davie, FL

WEST PALM BEACH, FL – SchenkelShultz Architecture, West Palm Beach, designed the new $27 million Florida Atlantic University/University of Florida Joint-Use Facility (top right rendering) to be located on the Florida Atlantic University campus in Davie, FL.

Designed to meet LEED® Silver Certification guidelines and slated to begin construction in March 2009, the 75,000-square-foot signature building will house the University’s College of Science with expanded research and support facilities as well as research and support spaces for UF’s Institute of Food and Agricultural Sciences.

The facility will also include office space for FAU’s College of Arts and Letters as well as state-of-the-art classrooms

Pirtle Construction Company, Davie, FL, serves as construction manager for the project which is slated for completion in 2010. The West Palm Beach office of SchenkelShultz is located at 1300 N. Congress Avenue, phone 561-697-3451.

Contact: Kenneth H. Cristol 407-774-2515

MSI to Host Its 24th Annual MSI-Frontline Golf Benefit Oct. 17

ORLANDO, FL – Orlando-based Mechanical Services, Inc. (MSI), an EMCOR company, continues a 24-year tradition of corporate giving to Frontline Outreach, Inc. with its 24th Annual MSI-Frontline Golf Benefit on October 17.

MSI and its numerous business partners have contributed over $425,000 in cash to the Orlando-based charitable organization since the inception of the event, raising over $60,000 last year alone.

To be held at the Orange County National Golf Center & Lodge, over 200 attendees will invest in one of the community’s most respected organizations to prepare tomorrow’s leaders for success.

Said Bill Dillard, (top right photo) founder and CEO of MSI, “Our combined investment in our urban community through Frontline Outreach produces real results at a value that cannot be measured in dollars and cents.” For further information, visit http://www.frontlineoutreach.org/.

Contact: Kenneth H. Cristol, 407-774-2515

Despite Downturn, Some Positive Retail Trends Stand Out in Palm Beach County

WEST PALM BEACH, FL — Long-term growth prospects for Palm Beach County remain intact, but an ongoing housing and economic slump is reducing demand for retail space, according to a third-quarter Retail Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm.

Some positive trends are discernible in the current data.

Supply growth remain limited; with an excessive amount of new space sitting unoccupied, marketwide vacancy and rent growth should turn around quickly once the local economy bounces back.

“Investors will likely become active in the coming months, seeking well-positioned, well-maintained multi-tenant properties to purchase ahead of the market’s eventual upturn,” says Gene Berman, (top right photo) managing director of the Fort Lauderdale office of Marcus & Millichap.

Following are some of the most significant aspects of the Palm Beach County Retail Research Report:

· Employers are expected to reduce payrolls by 9,000 positions this year, a 1.5 percent decrease.

· Roughly 900,000 square feet of retail space is scheduled for delivery in 2008, following the addition of 1.4 million square feet last year.

· The average vacancy rate is forecast to rise 190 basis points this year to 9.1 percent as some retailers defer expansion plans and other close locations.

· Asking rents are projected to drop 1 percent to $22.64 per square foot.
· Effective rents will retreat 1.9 percent to $20.26 per square foot.

For a copy of the complete Palm Beach County 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

Philadelphia Retail Market Expected to Moderate

PHILADELPHIA, PA— Steady construction activity and weaker consumer spending are causing Philadelphia’s retail market to moderate, with department stores and casual dining restaurants struggling the most, according to a third-quarter Retail Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm.

Looking forward, more stringent underwriting will likely increase the marketing times for many properties, as well as apply further upward pressure on cap rates.

“This year, investment activity with the Philadelphia retail market is expected to consist primarily of smaller buyers focusing on mid-tiered assets,” says Spencer Yablon, (top right photo) regional manager of the Philadelphia office of Marcus & Millichap.

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

· After 16,800 jobs were created in 2007, cuts are expected to total 8,000 workers this year, a loss of 0.3 percent.

· Developers are forecast to bring 1.9 million square feet of retail stock online in 2008, compared with 1.8 million square feet last year.

· Additions to stock this year will exceed tenant demand growth. As a result, vacancy is projected to push up 70 basis points by year end to 7.4 percent.

· Asking rents are expected to rise 1.8 percent in 2008 to $20.30 per square foot.

· Effective rents will tick up 0.6 percent to $18.26 per square foot.

For a copy of the complete Philadelphia 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