SPECIAL REPORT: Foreclosure Activity Decreases 12 Percent in September, RealtyTrac(r) Reports

Third Quarter Activity Up 3 Percent From Q2 2008 and Up 71 Percent From Q3 2007

New State Laws In California, Other States Impact Numbers

IRVINE, CA – Oct. 23, 2008 – RealtyTrac®, the leading online marketplace for foreclosure properties, today released its U.S. Foreclosure Market Report™ for September 2008 and Q3 2008.

Foreclosure filings — default notices, auction sale notices and bank repossessions — were reported on 265,968 properties in September, a 12 percent decrease from the previous month but still a 21 percent increase from September 2007.

One in every 475 U.S. housing units received a foreclosure filing in September.

Foreclosure filings were reported on 765,558 U.S. properties during the third quarter, up more than 3 percent from the second quarter and up 71 percent from the third quarter of 2007.

“Much of the 12 percent decrease in September can be attributed to changes in state laws that have at least temporarily slowed down the pace at which lenders are moving forward with foreclosures,” said James J. Saccacio, (top right photo) chief executive officer of RealtyTrac.

“Most significantly, SB 1137 in California took effect in early September and requires lenders to make contact with borrowers at least 30 days before filing a Notice of Default (NOD).

"In September we saw California NODs drop 51 percent from the previous month, and that drop had a significant impact on the national numbers given that California accounts for close to one-third of the nation’s foreclosure activity each month.

"Another example is North Carolina, where legislation was signed into law in August that requires lenders to provide homeowners and the state’s commissioner of banks a 45-day notice prior to filing a Notice of Default. We saw NODs drop 66 percent in North Carolina in September.

“On the other hand, initial foreclosure filings in Massachusetts jumped 465 percent from August to September after being much lower than normal in June, July and August.

"That temporary lull happened after a new law took effect in May requiring lenders to give homeowners a 90-day right to cure notice before initiating foreclosure. But in September, about 90 days after the law took effect, initial foreclosure notices jumped back up close to the level we were seeing earlier in the year.”

Nevada, Florida, California post top state foreclosure rates in September

Nevada continued to document the nation’s highest state foreclosure rate in September thanks to an 11 percent increase in foreclosure activity from the previous month. Foreclosure filings were reported on 13,022 Nevada properties during the month, an increase of 137 percent from September 2007 and one in every 82 housing units — more than 5 times the national average.

A 9 percent month-over-month increase in foreclosure activity helped Florida’s foreclosure rate leapfrog past foreclosure rates in Arizona and California to take the No. 2 spot, with one in every 178 housing units receiving a foreclosure filing in September.

Foreclosure filings were reported on 47,956 Florida properties during the month, an increase of 44 percent from September of 2007.

Foreclosure filings were reported on 69,548 California properties in September, a 32 percent decrease from the previous month but still up 36 percent from September 2007. With one in every 189 housing units receiving a foreclosure filing during September, the state’s foreclosure rate slipped to third highest among the states.

Other states with foreclosure rates ranking among the top 10 in September were Arizona, Georgia, Michigan, Ohio, New Jersey, Indiana and Colorado.

Top six states account for 60 percent of third quarter foreclosure activity

Six states accounted for more than 60 percent of U.S. foreclosure activity in the third quarter. California alone accounted for more than 27 percent of the nation’s foreclosure activity, with 210,845 properties receiving a foreclosure filing during the quarter — up 4 percent from the previous quarter and up more than 122 percent from the third quarter of 2008.

Foreclosure filings were reported on 127,306 Florida properties during the third quarter, the second highest state total. The state’s foreclosure activity increased 16 percent from the previous quarter and nearly 109 percent from the third quarter of 2007.

Arizona documented the third highest state total in the third quarter, with 40,419 properties receiving a foreclosure filing — a 9 percent increase from the previous quarter and a 189 percent increase from the third quarter of 2007.

Ohio, Michigan and Nevada all reported foreclosure filings on more than 30,000 properties during the third quarter, although foreclosure activity in Ohio was down 11 percent from the previous quarter and foreclosure activity in Michigan was down 8 percent from the previous quarter.

Nevada’s foreclosure activity increased more than 22 percent from the previous quarter and was up more than 132 percent from the third quarter of 2007.

Sun Belt cities dominate top metro foreclosure rates in third quarter

The cities with the 10 highest foreclosure rates among the nation’s 100 largest metropolitan areas in the third quarter were all located in California, Florida, Arizona and Nevada.

California alone accounted for six of the top 10, and Stockton, Calif., took the top spot, with 3.69 percent of its housing units receiving a foreclosure filing during the quarter.

Stockton’s foreclosure activity was down 9 percent from the previous quarter but still up 87 percent from the third quarter of 2007.

Other California cities in the top 10 for foreclosure rate were Riverside-San Bernardino at No. 3, Bakersfield at No. 4, Sacramento at No. 7, Fresno at No. 9 and Oakland at No. 10.

With 3.48 percent of its housing units receiving a foreclosure filing during the third quarter, Las Vegas documented the second highest metro foreclosure rate.

Foreclosure filings were reported on 26,304 Las Vegas properties in the third quarter, up 21 percent from the previous quarter and up 129 percent from the third quarter of 2007.

Two Florida metro areas were in the top 10: Fort Lauderdale at No. 5, with 2.30 percent of its housing units receiving a foreclosure filing during the quarter; and Orlando at No. 8, with 1.87 percent of its housing units receiving a foreclosure filing during the quarter.

Phoenix documented the sixth highest metro foreclosure rate, with 2.11 percent of its housing units receiving a foreclosure filing during the third quarter.

RealtyTrac publishes the largest and most comprehensive national database of foreclosure and bank-owned properties, with over 1.5 million properties from over 2,200 counties across the country, and is the foreclosure data provider to MSN Real Estate, Yahoo! Real Estate and The Wall Street Journal’s Real Estate Journal.

For a complete state-by-state breakdown, please contact Tammy Chan, Atomic PR, 415-402-0230, tammy@atomicpr.com

Ardaman & Associates secures contract with Health First

ORLANDO, FL, Oct. 22, 2008 — Ardaman & Associates Inc. has secured a contract with Health First for Viera Hospital (middle left photo) located in Viera, Fla.

According to Jason Manning, (top right photo) P.E., general manager of Ardaman’s Cocoa, Fla., office, the firm is already on site providing geotechnical engineering services.

Construction materials testing and Threshold Inspection services are slated to begin in November once construction starts. Hospital components include 64 patient beds, 20 intensive care beds, emergency room, cardiac care unit and a central energy plant in a new two-story, 220,000-square-foot facility.

The hospital was designed by HuntonBrady Architects of Orlando, Fla. Bovis Lend Lease is providing construction management services.
Ardaman & Associates has a long relationship with Health First having completed engineering services at the healthcare providers Palm Bay Community Hospital expansion in Palm Bay, Fla., and at the NRMC North Expansion in Melbourne, Fla.

Ardaman & Associates Inc. is an engineering practice providing geotechnical, environmental, water resources and facilities engineering, and construction materials testing to public, industrial and private clients worldwide.

The Company is headquartered in Orlando with offices in Bartow, Cocoa, Fort Myers, Miami, Pasco County, Port St. Lucie, Sarasota, Tallahassee, Tampa, and West Palm Beach, Fla., and in New Orleans, Baton Rouge, Shreveport, Monroe and Alexandria, La.

Established in 1959, Ardaman employs a professional, support and field staff of 550. Please visit ardaman.com for more details about services and experience.

(Dr. Wissa of Ardaman & Associates, bottom left photo)

Contact: Elaine Ingra, PR WORKS!, PH: 407 384-1344,
elainei@pr-works.com,

www.pr-works.com

Capital Commercial Partners Sells $12.08M Student Housing Portfolio in West Virginia

HUNTINGTON, WV – Capital Commercial Partners has negotiated the sale of a 325 bed student housing portfolio in Huntington.

The sales price of $12,080,000 represents a price of $37,169 per bed.

Richard Geisenfeld and Elliot Schneier, the firm’s managing partners along with Joseph McDonie; manager of the firms West Virginia office in Huntington, represented multiple sellers in the transaction.

The portfolio consisted of more than 16 properties surrounding the Marshall University campus and offers one- and two- bedroom units. The buildings vary in age and quality but boast an impressive occupancy history.

“During this turbulent time in the market, we were still able to arrange numerous financing options for the buyer who financed the deal with a new loan at 75% LTV, 30 year amortization, and 10 year term,” Schneier comments. “This transaction is another example of our ability to import capital from the around the country.” Geisenfeld added.

Capital Commercial Partners has closed in excess of $750,000,000 in real estate investment transactions across the U.S. They currently have offices in Ohio and West Virginia. The firm’s website http://www.nnn1.com/ is a national commercial real estate marketplace.

Ohio-based Capital Commercial Partners specializes in real estate investment brokerage throughout the US.

The company has a powerful marketing system for investment properties and combines product specialization; market expertise; state-of-the-art technology and established relationships with the largest pool of qualified investors globally.
http://www.nnn1.com/

Press Contact: Shelley Kaplan, Communications Department, (937) 241-5522

Capital Commercial Partners Sells $11.85M Dollar General Store Portfolio

DAYTON, OH- – Capital Commercial Partners has negotiated the sale of a 20 store Dollar General Portfolio located in several states. The sales price of $11,850,000 represents a capitalization rate of 9.0%.

Richard Geisenfeld, one of the firm’s managing partners, represented the seller in the transaction.

“Although much of the market is still on the sidelines waiting to see what the near term will hold, we continue to facilitate transactions," Geisenfeld comments. “The average lease term within this portfolio was 7 years and the stores were the typical rural Dollar General locations.”

The buyer was able to finance the deal with bank money at 70% LTV, 25 year amortization, and 7 year term,” Geisenfeld added.

Capital Commercial Partners has closed in excess of $750,000,000 in real estate investment transactions across the U.S. They currently have offices in Ohio and West Virginia. The firm’s website http://www.nnn1.com/ is a national commercial real estate marketplace.

Ohio-based Capital Commercial Partners specializes in real estate investment brokerage throughout the US. The company has a powerful marketing system for investment properties and combines product specialization; market expertise; state-of-the-art technology and established relationships with the largest pool of qualified investors globally.
http://www.nnn1.com/

Press Contact: Shelley Kaplan, Communications Department, (937) 241-5522

RECI Asks: Is There Any Correlation between Capitalization Rates and Years?

Numerology Adds Humor to Real Estate Capital Valuation Principals in an Uncertain Market

CHICAGO, IL, Oct. 22, 2008 -- The start of the mortgage meltdown over a year ago continues wrecking havoc on the real estate capital markets.

In particular, accurate property valuation is nearly impossible as buyers and sellers are sidelined due to limited debt availability.

Few properties are trading hands. Most investors believe values are trending downward in response to economic malaise, oversupply and lack of affordable debt.

(Treasury Secretary Henry Paulson, middle right photo)

As such, experts are using higher cap rates for valuating assets for most types of commercial and income properties. Lenders, in particular, are "creating" values by underwriting capitalization rates which may, or may not, reflect current market prices.

These cap rates are typically higher than many sellers are buyers expect, resulting in lower loan proceeds based on loan-to-value restrictions. Yet, owners often refuse to sell or acknowledge asset values based on lenders' higher cap rates, choosing to do nothing, instead.

In this stalemate, who's right and where are cap rates heading?

An amusing theory discussed by some experts as a humorous factoid suggests that current capitalization rates are directly correlated to the recent year numerical identity as indexed to the current real estate capital boom/bust cycle.

Today's market cycle peaked in 2007, with 2005 and 2006 ranking as the best years for very attractive valuations; in other words, low capitalization rates.

As for 2008, an 8% capitalization rate is the "strike price" for sellers motivated to liquidate properties.

While the markets are illiquid and few transactions leave any proof of value, an 8% capitalization rate reflects a weighted-average premium tied to the cost of capital for most types of income properties.

Applying the same logic in a downward market, 2009 should yield a 9% rate and a 10% cap rate would prevail in 2010.

Linking cap rates to year numerology is certainly an unrealistic discussion for measuring values in the currently volatile market.

Yet as investors search for answers in such uncertain times, numerology adds more theories to an already confusing time.

ABOUT US:

The Real Estate Capital Institute® is a volunteer-based research organization tracking debt and equity rate data. The Institute posts daily and historical rates including treasuries and short-term rates. The Real Estate Capital RateLine 7RE-CAPITAL (773-227-4825) provides hourly updates.

Visit The Real Estate Capital Scoreboard™ for more detailed information (http://www.ratesnews.com/).

CONTACT:

The Real Estate Capital Institute®
3517 West Arthington Street
Chicago, Illinois USA 60624
Contact: Nat Zvislo, Research Director
Toll Free 800-994-RECI (7324)
director@reci.com /

http://www.reci.com/

SPECIAL REPORT: MBA Forecasts Negative Economic Growth Through First Half of 2009

WASHINGTON, DC-)- MBA expects economic growth in the second half of 2008 to be negative and remain negative through the first half of 2009 before a modest recovery according to the latest economic forecast released today by the Mortgage Bankers Association.

MBA expects growth to pick up strongly by the end of 2009 and over the course of 2010. MBA expects total residential mortgage production in 2009 to be $1.67 trillion, down from an expected $1.86 trillion in 2008 and $2.3 trillion in 2007.

"A recession appears to be underway, as evidenced in rising unemployment, contracting manufacturing activity and declining inflation-adjusted consumption spending.

"Credit markets continue to be dysfunctional and the recent intensification of the credit crunch is hitting an already weakened economy," said Jay Brinkmann, (top right photo) MBA chief economist and senior vice president for research and economics.

"We expect residential investment to decline further through the first half of 2009, due to the excess supply of houses and weakened demand from the recession."

"Unemployment will likely accelerate," continued Brinkmann. "By the end of next year, the unemployment rate will probably be around 7.7 percent and remain elevated through most of 2010 before heading down again."

"The rates on fixed-rate mortgages have picked up recently to near 6.5 percent in response to policymakers' programs for banks recapitalization and insurance of financial institutions.

"We expect long-term rates to decline from their current levels as massive liquidity injections by central banks around the world and other policy actions work through the system and demand increases for long dated debt," said Brinkmann.

"The 30-year fixed-rate mortgage yield should trend modestly lower, averaging 6.0 percent in the current quarter and remaining near that level through 2009 before trending up modestly in 2010 as the economy gets stronger," said Brinkmann.

Following are the key points of the latest MBA forecast:

· Real GDP growth will average about 0.3 percent in 2008, 0.1 percent in 2009 and 3.4 percent in 2010. However, growth will be negative in the 4th quarter of 2008 and the first two quarters of 2009.

· The unemployment rate will increase from the current level of 6.1 percent to about 6.5 percent by the end of 2008 and steadily increase to about 7.8 percent by the first part of 2010 before declining by late 2010.
· Fixed mortgage rates are expected to average about six percent in the fourth quarter and remain slightly lower through the end of 2009 before rising modestly in 2010.

· Total existing home sales for 2008 will end up about 13 percent below those for 2007. Existing home sales are projected to rebound slightly in 2009, increasing by about three percent. Sales should increase by about six percent in 2010.

· New home sales for 2008 will be down by about 36 percent relative to 2007. Sales are projected to bottom in the second half of 2009 and rebound modestly in the second half.

For all of 2009, new home sales should post a decline of about 12 percent. Sales should increase by about 25 percent in 2010.

· National average home price declines should continue through most of 2009, with states like California and Florida continuing to drive the national averages, but with a number of other states showing more modest decreases.

Median home prices for new and existing homes are expected to be down about six to seven percent for 2008.

Prices should decline at a more modest rate of about three to four percent in 2009 before rising slightly in 2010.

· Purchase originations for 2008 will be $912 billion, about 20 percent below the 2007 level of $1,140 billion.

Purchase originations should rise about two percent in 2009, as existing home sales recover and home price declines moderate.

For 2010, we expect purchase originations to increase about nine percent as home sales increase strongly and home prices stop declining.

· Refinance originations will decline about 19 percent from an estimated $1,167 billion in 2007 to $949 billion in 2008. Refi activity will decline another 23 percent in 2009 before increasing about four percent in 2010, as lending standards ease.

CONTACTS:

John Mechem, (202) 557-2924 jmechem@mortgagebankers.org

Carolyn Kemp, (202) 557-2727, ckemp@mortgagebankers.org

Foster Conant wins new landscape architectural contract in Hillsborough County, FL

ORLANDO, Fla., October 22, 2008 — Foster Conant & Associates has secured a landscape architectural services contract with Lakewood Pointe Partners LLC of Winter Park, Fla., for a new apartment complex in Hillsborough County, Fla.

Foster Conant is providing construction documents and construction observation for the 16-acre site. Dubbed Lakewood Pointe, the apartment complex is composed of seven, three-story buildings housing 144-units supported by surface parking.

Slocum Platts Architects of Winter Park, Fla., designed the complex. Avid Engineering of Orlando, Fla., is providing civil engineering. The project is being built by ASM Construction Partners Ltd. of Maitland, Fla.

Founded in 1969, Foster Conant & Associates is headquartered in Orlando, Fla.

The landscape architectural practice has a storied history of designing award-winning, site-specific landscape architecture for high profile public sector projects and private developments throughout the Southeastern U.S.

The 16-person firm is managed by principals Richard R. “Rick” Conant, FASLA, Keith Oropeza, ASLA, René A. Ramos, RLA and John P. Sullivan, III, ASLA.

Please visit http://www.fosterconant.com/ for additional information.

Contact: Elaine Ingra, PR WORKS!, PH: 407 384-1344,
elainei@pr-works.com, www.pr-works.com

NAI Realvest celebrates 20th Anniversary as leading regional commercial property company

ORLANDO — NAI Realvest, the Orlando firm that ranks as the region’s fourth largest commercial real estate services firm with more than 67 employees and sales associates and one of the area’s largest developers of industrial space, is celebrating its 20th anniversary.

George Livingston, (top right photo) chairman and co-founder of NAI Realvest, said the firm’s 39 sales associates negotiated commercial sales and lease transactions last year that totaled more than $263 million.

During the entire first year of operations, three Realvest brokers negotiated transactions that totaled almost $500,000, Livingston said.

The $42 million sale of the 2,300 acre Ginn Reunion Resort (top left photo) site in Osceola County near Disney and the $40 million sale of the 1,800 acre International Corporate Park (bottom right photo) development east of Orlando International Airport rank as the firm’s largest transactions over the past two decades, Livingston said.

The firm’s most prominent clients include many of the region’s largest land owners — Shell Oil Corp., Port Canaveral, (bottom left photo) A. Duda & Sons and MAS Properties.

NAI Realvest has developed investment properties valued at more than $100 million, said Paul P. Partyka, (middle left photo) former Winter Springs mayor who joined the firm nine years ago and took over as managing partner of NAI Realvest earlier this year.

Partyka said the firm’s research capabilities rank among the world’s most advanced. NAI Realvest also formed a development division.

About NAI Realvest

NAI Realvest in Orlando, covering all of Central Florida, is a fully integrated commercial real estate operating company specializing in brokerage, development, investment, leasing and management, consulting and research services in the U.S. and worldwide.

NAI Global is an international commercial real estate network with over 325 offices spanning the globe. Since 1978, clients have built businesses on the power of NAI Global’s expanding network.

Extensive services include multi-site acquisitions and dispositions, sublease, tenant representation, lease administration and audit, investment services, due diligence and related consulting and advisory services.

To learn more, visit http://www.nairealvest.com/.

CONTACTS:

Paul P. Partyka, Managing Partner, NAI Realvest 407-875-9989, ppartyka@realvest.com

George Livingston, Chairman/Principal Realvest Development mailto:glivingston@realvest.comest.com

Janice Paiano, Director of Marketing, NAI Realvest, 407-875-9989, jpaiano@realvest.com

Larry Vershel or Beth Payan, LV Communications, 407-644-4142, lvershelco@aol.com

C&W negotiates lease for relocation of defense technology company, EBC Electronics

ORLANDO, FL –-–Cushman & Wakefield of Florida, Inc. (C&W) announced the lease of a 3,050 sf office and flex-space facility located in the Oviedo Commerce Center. Leasee EBC Electronics specializes in simulation products and services for defense industry customers including Lockheed Martin and British Aerospace.

Mindy Boehm negotiated the lease, representing the landlord, Oviedo Commerce Center, in the transaction for the property located at 2460 Aloma Avenue, Suite 1000.

For more information please contact:

Mindy Boehm Associate Director, Retail Brokerage 407.541.4391 mindy.boehm@cushwake.com

Brook Hines Marketing and Public Relations Associate 407.541.4401 brook.hines@cushwake.com

Shaw Mechanical Services wins Lake County Schools contract

ORLANDO, FL, Oct. 21, 2008 — Shaw Mechanical Services LLC has secured a one-year continuing services contract with Lake County Schools, Tavares, Fla., for HVAC mechanical contracting services.

Under the terms of the contract, Shaw Mechanical will provide budget estimating, value engineering, installation, equipment start-up and commissioning services for the repair or replacement of mechanical systems, ductwork and controls for the school district’s 32 facilities county wide.

Shaw Mechanical Services LLC is a Central Florida-based provider of mechanical contracting and service to building owners, property managers, facility managers, plant engineers, general contractors and consumers.

Comprehensive services provided by Shaw Mechanical include retrofits, renovations, preventative maintenance, commissioning and installation of heating, ventilating and air conditioning systems, process piping, automatic temperature controls and custom climate applications for existing structures and new construction.

Founded in 2001 by David L. Shaw, the privately-held company employs a staff of seventy from its headquarters in Orlando, Fla.

Contact: Elaine Ingra, PR WORKS!, PH: 407 384-1344,
elainei@pr-works.com,

http://www.pr-works.com/

HFF secures $37.8M financing of London and Geneva properties

BOSTON, MA – The Boston office of HFF (Holliday Fenoglio Fowler, L.P.) has secured $37.8 million in acquisition financing for two properties located in London, England and Geneva, Switzerland.

Working on behalf of TJAC, HFF director Anthony Cutone placed two loans through CTL Capital, LLC. Proceeds are being used to acquire and renovate the properties. TJAC is an international real estate development company.

Courtfield Gardens (top right photo) is a five-story property in the Kensington area of London. Rue Muzy is a six-story property in Geneva, (bottom left photo) Switzerland. Both properties presently exist as boutique hotels.

HFF (NYSE: HF) operates out of 18 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry.

HFF offers clients a fully integrated national capital markets platform including debt placement, investment sales, structured finance, private equity, note sales and note sale advisory services and commercial loan servicing. http://www.hfflp.com/.

CONTACTS:

Anthony Cutone, HFF Director, 617 338 0990, acutone@hfflp.com

Laurie Fish McDowell, HFF Associate Director, Marketing, 617 338 0990, lmcdowell@hfflp.com

HFF secures $47.35M construction loan for Dallas mixed-use development

DALLAS, TX – The Dallas office of HFF (Holliday Fenoglio Fowler, L.P.) has secured a $47.35 million construction loan for Brick Row, (top right photo) a mixed-use development under construction in Dallas, Texas.

HFF managing director Andy Scott (middle left photo) worked exclusively on behalf of the borrower, a joint venture partnership between Winston Capital Corporation, L&B Realty Advisors and the Michigan Employees Retirement System.

A three-bank syndication which was led by Colonial Bank, along with Texas Capital Bank and Broadway Bank, provided the three-year construction loan.

Upon completion in mid-year 2010, Brick Row will consist of 500 multifamily units and 16,000 square feet of ground-level retail space configured around two central parking structures.

Designed by Dallas-based BGO Architects, the property is situated in a park like setting. The completed Brick Row project is part of a large-scale master planned development consisting of for-sale townhomes, residential condominiums, ancillary retail, a public park, and will consequently be an upscale community unlike any other in the Richardson market.

Contiguous to the Spring Valley DART Rail Station (bottom right photo) at the intersection of Spring Valley and Greenville Avenue in the north Dallas suburb of Richardson, Brick Row will offer easy transportation to downtown Dallas (approximately 10 miles to the south), corporate centers to the north and major retail and entertainment destinations.

“To get this project financed in a turbulent capital markets environment is a testament to the commitment and resiliency of everyone involved in this endeavor, and is proof that development projects with stellar sponsorship and strong locations are getting done,” said Scott. “Colonial Bank, Texas Capital Bank and Broadway Bank never waivered in their focus or determination to get this deal to the finish line.

“Projects such as Brick Row are essential in defining the new landscape of transit oriented development in the Dallas Fort Worth metroplex, and represent viable and rewarding investment product for real estate firms to add to their portfolio for many years to come,” Scott added.

“Winston Capital Corporation’s long-term relationship with Colonial Bank helped to secure the deal,” said Tony Stephenson, area president of Colonial Bank. “Colonial has a genuine interest in its clients’ needs and goals while remaining dedicated to helping them come to fruition. We are honored to be an integral part of this project.”

CONTACTS:

J. Andrew Scott, HFF Managing Director, 214 265 0880, ascott@hfflp.com

Laurie Fish McDowell, HFF Associate Director, Marketing, 617 338 0990, lmcdowell@hfflp.com

Jones Lang LaSalle Says Washington Office Market in Flux but Job Growth Could Fuel Demand in 2009

Bad News: Tenants delay decisions, sit on sidelines.

Good News: Metro DC economy adds 44,600 jobs in the 12 months ending August 2008.

WASHINGTON, DC--Jones Lang LaSalle reports that a lame duck Administration, coupled with uncertainties regarding the upcoming presidential and congressional elections and the worst financial and economic crisis in a generation, clouded market conditions throughout the metropolitan Washington region at the end of the third quarter of 2008.

John Sikaitis, (top left photo) senior vice president, communications, Jones Lang LaSalle, notes tenants delayed decisions and sat on the sidelines, leading to slower leasing activity, tepid tour volume, extended deal length and negotiations and a heightened incident of renewals.

While market conditions slowed to a standstill as conservatism swept through the office market, job growth in the region was resilient.

Although the country has lost 760,000 JOBS over the past nine months, job growth in the DC region has actually increased from several months ago as the cushion of the government and its contractor base allowed the Metro DC economy to add 44,600 jobs in the 12 months ending August 2008.

Additionally, unemployment remained two full percentage points below the national average at 4.1 percent.

Over the past six months, as the national economy slowed, Metro DC's job growth accelerated, nearly doubling the 22,000 jobs created in the twelve months ending March 2008 by reaching its current level of 44,600 jobs.

The job creation should fuel additional office sector requirements in the first half of 2009 even as most metropolitan areas around the country have recently experienced contracting payrolls and occupancy declines.

Despite significant job creation, an aggressive development cycle in all three jurisdictions coincided with the slowdown in demand, shifting leverage to tenants in the vast majority of product types and locations over the past few quarters, which will undoubtedly linger for the coming quarters into the latter part of 2009, at a minimum.

For more information, please contact:

John Sikaitis, 202.719.5839, John.Sikaitis@am.jll.com
Scott Homa, 202.719.5732, Scott.Homa@am.jll.com