MOMENTUM EASES
IN BROOKLYN OFFICE MARKET

BROOKLYN, N.Y., Aug. 4, 2008 — While the near-term outlook for Brooklyn office fundamentals is mixed, the longer-term view offers interesting possibilities, according to a second-quarter Office Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm. Residential development in Brooklyn has gradually transformed the local worker profile, making the area increasingly attractive to office-using firms and office property developers.

“New residents across the borough will continue to spur tenant demand for lower-tier space among population-driven services employers, such as medical practices and insurance providers, helping sustain occupancy and fuel revenue growth,” says J.D. Parker, regional manager of the Brooklyn office of Marcus & Millichap.

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

• Approximately 50,000 square feet of new office space is expected to be completed in the borough this year.
• Vacancy is forecast to end the year at 10.5 percent.
• The average asking rent is expected to increase 4.3 percent to $27.41 per square foot.
• In the entire New York metro area, which consists of the five boroughs plus other counties in New York and New Jersey, 4,000 office-using jobs have been created during the last year.
• The median price of $310 per square foot recorded in deal during the past 12 months was up 2 percent from the previous year.

For a copy of the complete Brooklyn Office Research Report, as well as reports on other markets nationwide, visit our website at www.MarcusMillichap.com.

With more than 1,300 investment professionals in offices nationwide, Marcus & Millichap Real Estate Investment Services is the largest firm specializing in commercial real estate investment services in the nation. Marcus & Millichap closed 3,756 transactions in 2008, the highest of any commercial real estate brokerage firm. Founded in 1971, the firm has perfected a powerful system for marketing properties that combines product specialization, local market expertise, the industry’s most comprehensive research, state-of-the-art technology and relationships with the largest pool of qualified investors nationally.

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