WASHINGTON, D.C. RANKED AS TOP
U.S. RETAIL MARKET

WASHINGTON, D.C., March 12, 2010 – The economic outlook for the Washington, D.C., metro area is improving, with most employment sectors anticipated to expand in 2010, according to the 2010 National Retail Report by Marcus & Millichap, the nation’s largest real estate investment services firm. Fundamentals will remain healthiest around the D.C. metro’s core; however, tepid demand in outlying submarkets will limit marketwide improvements this year.

“Single-tenant net-leased sales velocity will tick higher in 2010, supported by persistent price declines,” says David Feldman, regional manager of Marcus & Millichap’s Washington, D.C. office.

Following are some of the most significant aspects of the Washington, D.C. Retail Research Report:

• In 2010, employers will add 35,000 jobs to local payrolls, or 1.2 percent, after 15,250 positions were eliminated last year.
• Retail stock will expand by 2.5 million square feet, or 1.5 percent, this year. In 2009, more than 3 million square feet was added.
• Soft demand, particularly in outlying submarkets, will cause vacancy to tick up 20 basis points to 6.5 percent in 2010. Vacancy climbed 100 basis points last year.
• This year, asking rents will remain fl at $26.15 per square foot, though effective rents will retreat 2.1 percent to $22.56 per square foot. Asking and effective rents fell 5.2 percent and 7.5 percent, respectively, in 2009.

Also included in the report is the firm’s annual National Retail Index (NRI), a snapshot analysis that ranks 44 retail markets based on a series of 12-month forward-looking supply and demand indicators. Washington, D.C., claimed the top spot in this year’s National Retail Index (NRI) for the second year in a row due to a low vacancy rate and healthy job growth. Projected job gains boosted San Diego one place to No. 2 and a lack of significant construction in recent years moved San Francisco up one notch to No. 3. Forecasted job growth elevated New York City four places to No. 4 and continued layoffs dropped New Jersey three places to No. 5, despite low vacancy and the state’s relatively steady economy.

For a copy of Marcus & Millichap’s National Retail Report and the complete NRI rankings, visit www.MarcusMillichap.com.

With more than 1,200 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 3,441 transactions in 2009, 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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