Office

The forecast for 2008 indicates a healthy absorption, leasing and investment year. Vacancies will slowly decline from a new high as lease rates become competitive. Investments will be tempered by fallout from the subprime lending market.

Industrial

Overall absorption declines and vacancies rise as more large blocks of space appear. Small users fuel demand for upscale space in smaller buildings. Users and investors boost average per square foot sales prices to new historical highs.

Retail

Retail construction continues unabated despite temporary slowdowns in housing construction. Retail sales continue to increase and absorption remains positive. Rental rates establish historic high. Older centers are being revitalized.

Investment, Multi Housing, and Land

Improved sales volumes exceed $800 million marking the second highest investment year in history. Overall values decline by 10 percent as market succumbs to economic slowdown. Land sales fall below 8,000 acres with prices stabilized at 2006 rates.

Improved Sales

Appartments led teh market with $200 million invested. Retail building sales reached $166.5 million including 12 shopping centers at $52.3 million. Industrial reached $158.6 million, and ofice sales totaled $199 million which included $7 million in condo sales and six Class A buildings at $76 million. Other category sales rounded out the $800 million investment year bringing the total square foot sold to 7.7 million.

Land Sales

As forecast, sales declined in 2007 with less than 8,000 acres sold. Most overall prices remained stable; however, the $141.4 million expended was eclipsed by the $447.3 million posted in 2006. Land "banking" in 2006 saw the acquisition of 24,000 acres - most of which are destined for a long-term development. The acreage purchased in 2007 is destined for near-term development, and over 100 acres have already been permitted for commercial use.

Forecast

Upscale property investing will continue in 2008. Financing could take longer. Lease-buy options may offer the best opportunities for owner-users. Investors with ready cash should have no problems negotiating favorable prices. Large floor plate industrial buildings and older shopping centers will offer upside opportunities at below market prices. Most land sales will be tied to development and square foot prices for commercial applications will increase.