London Remains World's Most Expensive Office Market

Rapidly-Rising Moscow Jumps to Second Place.
Ho Chi Minh City Sets Pace For Fastest Occupancy Cost Growth

LOS ANGELES, CA- London's West End (photo at middle left) is once again the world's most expensive office market, while rapidly-rising Moscow climbed to second place, according to CB Richard Ellis Group, Inc. (CBRE) Research's semi-annual Global Market Rents survey.

The report tracks world markets with the highest as well as fastest-growing occupancy costs for the 12 months ended March 31, 2008. Tokyo's Inner Central Five Wards, Mumbai's Nariman Point and Tokyo's Outer Central Five Wards rounded out the top five most expensive markets.

"Office occupancy costs are continuing to defy sluggish economic conditions and the credit crunch, as they rise faster than global inflation," said Dr. Raymond Torto, (top right photo) CBRE's Global Chief Economist. "These cost increases are dominated by emerging markets, caused by both supply and demand imbalance and the depreciation of the dollar relative to local currencies. In some of these emerging markets, Class A office space is seriously lacking."

Ho Chi Minh City (photo at right, showing Downtown and Saigon River) had the fastest-growing occupancy costs during this period, up 94%. Moscow was not far behind at 93%, followed by Singapore at 86%.

Overall, EMEA (Europe, Middle East and Africa) dominated the list of markets with the fastest growing occupancy costs, accounting for five of the top 10 and 19 of the top 50 markets. Worldwide, 88% of the 173 office markets monitored posted higher occupancy costs.

Among the most expensive markets, Singapore and Dubai were newcomers to the top 10.

Singapore ranked ninth with an occupancy cost of $139.31 (occupancy cost in US$/sq. ft./annum used throughout this release), while Dubai debuted at number 10 with an occupancy cost of $128.49. With a near-doubling of occupancy costs, Moscow rose four places to second at $232.37.

(Moscow Kremlin and Moskva River photo at left, below London skyline)

Midtown Manhattan was still the priciest market in North America, at $103.43, and ranked number 13 worldwide.

(For a complete copy of CBRE's news release, showing other top office markets, please contact

Robert McGrath, CBRE, 212 984 8267, robert.mcgrath@cbre.com, or Jessica Wilhoite, jessica.wilhoite@cbremarketing.com

Gemstone Hotels & Resorts to Manage Whiteface Lodge Resort in Lake Placid

PARK CITY, UT—Officials of Gemstone Hotels & Resorts, a full-service hotel management and asset management company that specializes in luxury and upscale urban hotels and complex resorts, has signed a management agreement to operate The Whiteface Lodge Resort, (above photo) a AAA four diamond resort in Lake Placid, N.Y.

“The demand for hotels and resorts that deliver a one-of-a-kind experience continues to rise,” said Thomas Prins, (top right photo) Gemstone principal. “This new addition to our portfolio matches up well with our core strength or implementing a new strategy for an existing resort that has either lost its focus in the market or has not performed up to its full potential.”

Opened in 2005, the luxury Whiteface Lodge Resort is a member of Leading Hotels of the World. The resort offers 94, one- to four-bedroom suites with a Private Residence Club.

The property features a 5,800-square-foot treatment spa, which was just named by Conde Nast as one of the top three hotel or resort spas in North America.

The spa has six treatment rooms and a fully equipped fitness center. Other amenities include an indoor/outdoor swimming pool, an ice-skating rink, 54-seat movie theater, bowling lanes, tennis courts, snowshoe/cross-country trails and a private beach and canoe club on the lake.

“We have extensive experience in operating ski resorts as four-season destinations,” said Prins. “We work closely with our home communities to create special events and activities to attract guests year-round.

“Gemstone also has a proven track record in fractional resort projects and homeowner associations,” Prins noted. “This is the most significant development in Lake Placid since the 1980 Olympics, and we look forward to taking full advantage of all that the region offers.

“We have perhaps the most active pipeline in our history for both existing and planned hotels,” he noted. “As we enter more difficult economic times, hotel developers and owners seek operators with the expertise to create a unique environment for the hotel’s guests, while optimizing the bottom line.”

Headquartered in Park City, Utah, with an office in Stamford, Conn., Gemstone Hotels & Resorts is a full-service management and asset management company that specializes in luxury and upscale urban hotels and complex resorts.

The company is engaged in resort and unique hotel marketing and management and asset management for a variety of major hotel real estate investors and owners. Gemstone currently manages or asset manages more than 20 projects.

Additional information about the company may be found at http://www.gemstoneresorts.com/.

Contacts:

Jerry Daly or Chris Daly, media, (703) 435-6293
Julie Tullbane, Daly Gray Public Relations, T 703-435-6293, F 703-435-6297
julie@dalygray.com

EastGroup Properties Announces 114th Quarterly Dividend

JACKSON, MS– EastGroup Properties' (NYSE-EGP) Board of Directors has declared a quarterly dividend of $.52 per share payable on June 30, 2008 to shareholders of record of Common Stock on June 20, 2008.

This dividend is the 114th consecutive quarterly distribution to EastGroup's shareholders and represents an annualized dividend rate of $2.08 per share.

EastGroup also announced that its Board of Directors declared a quarterly dividend of $.4969 per share payable on July 15, 2008 to shareholders of record of Series D Preferred Stock on June 30, 2008.
EastGroup Properties, Inc. is a self-administered equity real estate investment trust focused on the development, acquisition and operation of industrial properties in major Sunbelt markets throughout the United States with an emphasis in the states of Arizona, California, Florida and Texas.

Its strategy for growth is based on its property portfolio orientation toward premier business distribution facilities clustered near major transportation features. EastGroup's portfolio currently includes 25.0 million square feet with an additional 1.9 million square feet of properties under development.

EastGroup Properties, Inc. press releases are available at http://www.eastgroup.net/press/pressreleases/www.eastgroup.net.
P.O. Box 22728, Jackson, MS 39225-2728
Telephone: 601/354-3555 Fax: 601/352-1441

For more information, please contact:
David H. Hoster II, President and Chief Executive Officer (top right photo)

N. Keith McKey, Chief Financial Officer (bottom left photo)
(601) 354-3555

HFF Secures $10M Refinancing for Shaw’s Plaza in Tilton, NH

WESTPORT, CT – The Westport office of HFF (Holliday Fenoglio Fowler, L.P.) has announced that it secured a $10 million first mortgage for an 89,888-square-foot shopping center (photo above) anchored by Shaw’s and Staples in Tilton, New Hampshire.

Working on behalf of Exchange Holdings, LLC, HFF managing director Al Epstein and director Christine Riniti placed the 10-year, fixed-rate loan with TD Banknorth.

The refinancing replaced an existing CMBS loan that was coming due. Exchange Holdings, LLC is affiliated with Hoffman Investment Partners, a family real estate investment business with properties in Portland, Oregon, Connecticut and New Hampshire.

Situated on a 10-acre site in the Lakes Region of New Hampshire, (Squam Lake photo at left), the property is 200 yards from the entrance of Interstate 93 on Laconia Road, the main retail thoroughfare for the region.

Within a one mile radius of the property is more than 800,000 square feet of retail space including the Tanger Outlet Center, Home Depot, BJ’s, Kohl’s, Wal-Mart, Market Basket and other prominent retail chains.

Completed in 1998, the property is fully leased to tenants including Shaw’s, Staples and Applebee’s.

“Shaw’s is one of the dominant food grocers in New Hampshire,” said Epstein. “The 55,000-square-foot, Tilton store is one of three Shaw’s located in the Lakes Region. The others are in Belmont and Gilford.”

CONTACTS:

Alvin J. Epstein, HFF Managing Director, 203 226 8171, aepstein@hfflp.com

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

HFF Arranges $43.37M Bridge Loan for Historic San Francisco Office Building

LOS ANGELES, CA – The Los Angeles and San Francisco offices of HFF (Holliday Fenoglio Fowler, L.P.) announced today that they arranged a $43.37 million bridge loan for the Rialto Building, (above photo) a 140,000-square-foot historic office building in downtown San Francisco, California.


HFF managing director Larry Wilemon (top right photo) and director Zane Sweet (HFF San Francisco) worked on behalf of Steven Firtel, corporate counsel and director of development for Bomel Companies, to secure the loan through GE Real Estate.

Loan proceeds will retire existing debt, pay off an unsecured note, fund tenant improvements, leasing costs and capital expenditures, and return equity to the borrowers upon stabilization as ownership seeks a long-term hold and operation of this historic property.

“We are thrilled to be able to secure the financing required by Bomel and our partners on this property, which will enable us to implement a long-term leasing and capital improvements plan on the Rialto,” said Firtel.

“The entire team we worked with at HFF was diligent, knowledgeable, responsive as well as effective and most importantly successful in obtaining key required elements associated with this transaction.”

Originally completed in 1902, the Rialto Building has eight stories of office space situated above ground floor and mezzanine retail space. The property is 88% occupied by tenants including Trust for Public Land, Walgreens and Chipotle Grill. The Rialto Building is located at 116 New Montgomery Street in the south financial district submarket of San Francisco.

“The Rialto Building is a tremendous value-add opportunity due to a majority of the leases being below market and expiring within the next 6-to-36 months,” Wilemon said. “In a market that has seen rents increase from $24 per square foot to roughly $40 per square foot for Class B office space, this is a perfect time for the current owners to reposition the building and raise rents to market levels.”

Bomel Companies is an opportunistic development firm specializing in urban infill projects, with active or recent projects in San Francisco, Los Angeles, Culver City, Miami, New York, Kauai, Las Vegas and Israel. Bomel’s focus is on multifamily, retail and mixed-use urban infill projects predominately within key markets in the Western U.S. where there is an opportunity to add value and generate positive cash flow long-term.

CONTACTS:

Larry Wilemon, HFF Managing Director, 310 407 2100, lwilemon@hfflp.com

Laurie Fish McDowell, HFF Associate Director, Marketing, 617 339 0990, lmcdowell@hfflp.com

Grubb & Ellis|Commercial Florida Negotiates Long-Term Office Lease in Westshore/Airport Submarket

TAMPA, FL – Grubb & EllisCommercial Florida recently negotiated the long term lease of 31,414-square-feet of office space lease in Tampa’s Westshore/Airport submarket.

Mia Jarrell, (middle left photo) vice president in the company’s Office Group and Neil Resnick, (middle right photo) executive vice president with Grubb & Ellis Company’s Transaction Services Group negotiated the lease of 31,414-square feet at Woodland Corporate Center, (top left photo) located at 7920 Woodland Center Blvd. in Tampa, FL.


(Woodland Corporate Center photo courtesy Tampa Bay Business Journal).



Jarrell and Resnick represented the tenant, Hilton Reservation Worldwide. The landlord is Liberty Property Limited.

For more information, contact:
Mia Jarrell, Grubb & EllisCommercial Florida 813-830-7522, mjarrell@commercialfl.com;
Larry Lietzman, Grubb & EllisCommercial Florida, 813-639-1111

Johnson-Laux Construction Completes More Than 18 Medical Projects Since August 2005 at Florida Hospital Waterman in Tavares, FL

ORLANDO, FL – Orlando-based Johnson-Laux Construction has completed more than 18 medical projects totaling over $5.3 million since August 2005 at Florida Hospital Waterman in Tavares, in Lake County, FL, according to LEED-Accredited Professional Kevin Johnson,(top right photo) president, and Anthony Laux, vice president.

In February the company completed a 1,050-square-foot Linear Accelerator/Trilogy unit at Florida Hospital Waterman (photo at left) Cancer Center and will commence construction on a High-Dose Radiation Treatment Booth this summer.

Johnson also announced the company has been awarded a 6,000-square-foot interior build-out at Lake Eye Associates at Florida Hospital Waterman, a 1,600-square-foot Patient Financial Services relocation build-out and the new Occupational Health Clinic.

Other completed projects include: the 8,000-square-foot Center for Medical Imaging (CT Scan, MRI, PET Scan, Radiography); 6,000-square-foot Pharmacy interior build-out; 4,500-square-foot Administrative Board Room, Conference Center and Classroom Facility interior build-out; 1,500-square-foot Diagnostic Imaging Offices and Conference Room renovations;

1,500-square-foot Endocrinology Suite interior build-out; 1,000-square-foot Bronchoscopy Suite addition; 1,000-square-foot Education Center renovation; 1,000-square-foot Cath Lab 3 interior build-out;

1,000-square-foot PACS addition/renovation; new 1,000-square-foot Staff Lounge; 1,000-square-foot Wound Care and Hyperbaric Chamber replacement;

800-square-foot Griner-Garrison Chapel; 500-square-foot Cancer Center CT Sim replacement and renovations; new 450-square-foot Registration Area restroom; 400-square-foot Emergency Department renovation; Diagnostic Imaging Center (new 64-slice CT Scan and E.D. X-ray renovation), multiple areas; and miscellaneous Medical Office Building interior build-outs.

Johnson-Laux Construction is located at 4502 35th Street, Suite 500, Orlando, FL, phone 407-770-2180. For more information, visit http://www.johnson-laux.com/.

CONTACT:

Kenneth H. Cristol, President, Cristol Marketing Company, 237 Hunt Club Blvd., Suite 102, Longwood, FL 32779 USA, PH 407-774-2515, FX 407-774-6647, Strategic Marketing, Brand Management, Publicity and Advertising, and Corporate Communications

khc@crismktg.com

http://www.crismktg.com/

Marcus & Millichap Brokers Sale of Three Lake Worth, FL Properties

LAKE WORTH, FL– Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment brokerage firm, has announced the sale of three adjacent properties, two shopping strips and an office building in Lake Worth, according to Gene A. Berman, Managing Director in the firm’s Fort Lauderdale office.

The three buildings commanded a total sales price of $1,900,000. The 5,000-square foot shopping strip located at 210 S Dixie Highway sold for $850,000, the 5,795-square foot shopping strip located at 220 S Dixie Highway sold for $650,000 and the 5,300-square foot office building located at 230 S Dixie Highway sold for $400,000.

Vice President Investments David Luther (top right photo) and Investment Specialist Justin Hopkins in the Fort Lauderdale office represented the seller, Bleeker-Grove Associates FL, LLC. The listing agents also secured the buyer, Lake Worth Plaza, LLC.

“The combination of the quality of asset, excellent location and also the potential for higher returns by bringing rents to market, made these properties a great addition to the investor’s portfolio,” says Luther.

Contact: Ashley Steele, (954) 245-3400

Welbro Building Corp. Places in Orlando Business Journal’s Best Places to Work

ORLANDO, FL-- Welbro Building Corporation for the 4th year in a row placed in the top 5 large companies for the “Best Places to Work” in Central Florida, sponsored by the Orlando Business Journal.

In addition, for the third time WELBRO took the #1 spot for Best Places to Work in the Large Company Category.

The best places to work are companies that don’t cut back on their commitment to employees, while asking them to work harder and smarter,” said OBJ publisher, Ann Sonntag (middle left photo). “These companies recognize employees are their best asset, instrumental in maintaining the quality and reputation for services and products. It’s a smart and winning business strategy.”

“We are proud to be recognized by our Associates and we appreciate all of their efforts that make WELBRO Building Corporation the company that it is”, stated Steve Davis, (top right photo) President/CEO of WELBRO. “We are very fortunate to have a group of very dedicated people that believe in the vision and mission of our company. This is truly their award”.

For more information, please contact:

Patricia A. Werner, CEcD, Vice President Community & Economic Development, WELBRO Building Corporation, Telephone: 407/475-0800; mobile: 407/766-3951. 2301 Maitland Center Pkwy, Suite 250
pwerner@welbro.com Maitland, Florida 32751 or

Corine A. Hall, CPSM, Marketing Manager, WELBRO Building Corporation, 2301 Maitland Center Parkway, Suite 250Maitland, FL 32751chall@welbro.comt. 407.475.0800 / f. 407.475.0801

SchenkelShultz Designs School District of Indian River County's Innovative $36.9M, 167,500-SF North County Middle School "BB" in Vero Beach, FL

VERO BEACH, FL – SchenkelShultz Architecture, West Palm Beach, one of Florida’s leading green designers, designed the School District of Indian River County’s innovative new $36.9 million, 167,500-square-foot North County Middle School “BB” now under construction in Vero Beach, FL.

Designed to meet the LEED® for Schools Gold Criteria established by the U.S. Green Building Council, the project incorporates the “school within a school” concept with each grade level housed in a separate classroom building to create small learning communities.

The facility will utilize the concept of the 3D classroom which will feature student-controlled classroom lighting, recycling programs, and indoor air quality controls.

The 1,329 student station middle school will reflect a modern Florida Cracker architectural style and will contain: a dramatic two-story entrance allowing natural light to filter to the administration spaces; a secure central courtyard with two-story walkways connecting the academic buildings;

A one-story cafeteria, administration, media and gymnasium building which will allow after-hours use by the community; a 9,000-square-foot dining/multi-purpose space with black box theatre; a covered outdoor dining area to accommodate 300 students and staff; flexible student learning centers with nine science labs; as well as vocational labs including business, art and technology.

For additional information, please contact:

Kenneth H. Cristol, President, Cristol Marketing Company237 Hunt Club Blvd., Suite 102, Longwood, FL 32779 USA. PH 407-774-2515 FX 407-774-6647

Strategic Marketing, Brand Management, Publicity and Advertising, and Corporate Communications

khc@crismktg.com

http://www.crismktg.com/

Terranova Reports Broward County Retail Rents Rise While Occupancy Declines

(Pompano Citi Center, above, shows parking lot capacity)


MIAMI BEACH, FL– Shopping center rents inBroward County increased 6% between spring 2007 and spring 2008, according to Terranova’s 2008 Shopping Center Update Report.

Average asking rent for inline space in Broward County is now $23.98 per square foot net, compared to $22.63 in 2007. (Sawgrass Mills mall, Sunrise, FL at top right)

A drop in occupancy accompanied the increase, with the county’s vacancy rate now at 7.44%, compared to 5.46% in 2007. The higher vacancy rate reflects an increase in the availability of both big-box and inline space.

The retrenchment or demise of various chains such as Rag Shops, 99 Cent Stuff, CompUSA, Pier One Kids and Bombay Co. impacted occupancy, as these stores occupied anchor and junior-anchor spaces throughout the county.

Inline space also has become more available throughout the county, as smaller local tenants have closed while national chains such as Hollywood Video, Curves and Quizno’s have reduced the number of locations.

“South Florida’s retail market remains strong and resilient, but no doubt we all now have more space available to lease,” said Stephen Bittel, Terranova’s Chairman.

“If you are in amarket with strong fundamentals, as SouthFlorida is, that means opportunity more than anything else.”

Those fundamentals include population growth and a diverse economy, and continue to fuel new retail construction, with some 25 projects totaling more than three million square feet under construction or expected to break ground in the next 12 months.

Emerson International Negotiates Lease Renewal for 14,051 SF of Office Space at Sanlando Center in Longwood, FL

ALTAMONTE SPRINGS, FL-- Emerson International has negotiated a long-term lease renewal for 14,051 square feet of office space at Sanlando Center, (bottom left photo) 2180 West SR 434 in Longwood.

Pierre de Amezola, director of sales and marketing at Emerson International, said Sean Westcott negotiated the lease agreement on behalf of the landlord, Emerson International, Inc.

The tenant, PRC, LLC, a strategic sales and marketing management company headquartered in Plantation, Fla. was represented by Sarah M. Castor (top right photo) of Strictly Commercial, Inc. in the transaction.

For more information, contact:

Pierre de Amezola, Director of Sales & Marketing, Emerson International, 407-456-1525

Larry Vershel or Beth Payan, Larry Vershel Communications, 407-644-4142

Thomas D. Wood & Co. Finances Mercator Industrial Project in Orlando

Orlando, Florida—May 28, 2008—Doug Rozzell, Principal for Thomas D. Wood and Company, secured financing in the amount of $2,300,000 for the development of Mercator Industrial in Orlando, Florida.


Rozzell financed the construction loan through Thomas D. Wood and Company’s relationship with a regional banking institution, at an interest rate of Prime + 1%.


The loan term is five years with a 25-year amortization, and a loan-to-value of 70%. The owner-occupied industrial project will be built on 10.64 acres located on Mercator Drive in Orlando, Florida.

CONTACTS:

Doug Rozzell, 407 937 0470, drozzell@tdwood.com

Jessica Gurtowski, 407 937 0470, jgurtowski@tdwood.com