CLEVELAND, Jan. 27, 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 Cleveland apartment market will post modest rent growth this year.

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. Cleveland drops two spots this year to No. 38.

"Anticipated gains in key apartment-supporting employment sectors this year will lead to improved property performance in 2006," comments Scott Przybyla, regional manager of 's Cleveland office. "Stronger demand will be most evident in the Lakewood submarket, where a projected vacancy reduction will permit owners to raise asking rents this year."

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

• Improving occupancy will enable owners to increase asking rents 1.7 percent in 2006 to $700 per month.
  
  Declining concessions will trigger a 2.2 percent gain in effective rents to $665 per month.
   

• Modest job growth combined with limited development will result in a 20 basis point improvement in vacancy to 6.4 percent in 2006.
  
  In the suburban Lakewood submarket, resilient demand and a lack of apartment supply will reduce the vacancy rate 40 basis points to 5.9 percent.
   

• Job growth will return to Cleveland in 2006 after employment gains failed to materialize last year.
  
  Almost 14,000 positions are forecast to be added this year, a gain of 1.3 percent.
   

• Apartment completions are expected to total 300 units in 2006, similar to what was delivered last year.
  
  Cleveland has maintained a minimal level of development for the past five years.
  
  

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.