DENVER, 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 Denver apartment market will benefit from increased employment opportunities and strong rent growth.

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. Denver improves one place this year to No. 24.

"The long-awaited recovery of the Denver apartment market is well under way, and apartment fundamentals are expected to strengthen further in 2006," comments Adam P. Christofferson, vice president of and regional manager of the Denver office. "Strong performing submarkets throughout the metro include Littleton and Englewood, where the recovery of the Tech Center area and the completion of mass transit projects have increased demand for local housing."

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

• Rent growth will accelerate in 2006 as the market's recovery continues.
  
  Asking rents will rise by 2 percent to $863 per month, while effective rents will increase 6.7 percent to $790 per month.
   

• Vacancy is projected to drop 100 basis points to 7 percent in 2006, as demand remains robust.
  
  Denver vacancy fell 160 basis points last year due to strong absorption and limited development activity.
   

• Employment growth in Denver will continue at a steady rate, with 39,000 jobs expected in 2006.
  
  The forecast represents a 3.2 percent increase in local employment. The professional and business services sector, a strong demand generator for apartments, is expected to add 8,000 positions.
   

• New construction in Denver remains limited with only 1,800 units are scheduled for completion in 2006.
  
  New construction is concentrated around new light rail routes that follow I-25 southeast from the city center.
   

• Investor interest in properties across the metro, especially those located in Littleton, Englewood and downtown, is expected to be strong in 2006.
  
  Investment demand is high in the Littleton and Englewood areas due to strong job creation, while downtown has become an investment target due to the growing popularity of living close to work and entertainment.
  
  

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.