ATLANTA, Jan. 25, 2006 -  Real Estate Investment Brokerage Company, the nation's largest real estate investment brokerage firm, recently released its National Apartment Research Report for 2006, which indicates the Atlanta apartment market will benefit from strong employment growth and declining vacancy.

Also included in the report is the firm's annual National Apartment Index (NAI), a snapshot analysis that ranks 42 apartment markets based on a series of 12-month forward-looking supply and demand indicators. Atlanta climbs two places this year to No. 30.

"Investor demand for luxury apartments will remain strong in 2006 due to expectations of solid revenue growth this year and beyond," comments John M. Leonard, vice president of and regional manager of the Atlanta office. "Properties that can be upgraded to Class A status are attracting significant attention and condo conversion transactions are also on the rise, with prices running at an average of 35 percent over traditional apartments."

Following are some of the most significant aspects of the Atlanta Apartment Research Report:

• Rents will increase in 2006 as vacancy continues to decline.
  
  Asking rents are forecast to rise 1.2 percent to an average of $834 per month. Effective rents will increase at a similar rate to $739 per month.
   

• Stronger job growth will lead to a 110 basis point decline in vacancy to 8 percent by year end.
  
  Apartment vacancy fell 60 basis points in 2005 to 9.1 percent, due not only to a pickup in demand from job growth but also to a temporary boost from Katrina evacuees.
   

• Atlanta employment will rise by 2 percent or 45,000 positions in 2006, more than two times the number of jobs added last year.
  
  Among specific sectors, professional and business services will lead growth with 12,000 new positions.
   

• Completions are expected to total 3,470 units this year, down from 5,100 units in 2005.
  
  Apartment development is slowing as more multi-family builders switch over to the condo market.
   

• Improving market conditions will keep investment activity strong in 2006.
  
  Upside opportunities are likely to emerge in the Class B/C segment this year, particularly in suburban areas where vacancy recently peaked, such as the Marietta and Clayton/Henry submarkets.
  
  

Orange County (Calif.) claimed the top spot in the 2006 NAI, surpassing last year's leader, Riverside-San Bernardino (California's Inland Empire). The region's median home price of more than $700,000 makes Orange County one of the least affordable housing markets in the country, which will keep renter demand at high levels. Fort Lauderdale occupies the No. 2 position due to robust job growth and low vacancy. Las Vegas moved up one spot to No. 3, supported by strong condo conversion activity and declining vacancy. San Diego fell two places to No. 4, and New York City-Manhattan climbed four positions to complete the top five. Typically the bottom MSAs in the NAI are markets with above-average vacancy or weak labor markets.