MIAMI, Jan. 30, 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 condo conversions will continue to support low vacancies and strong rent growth in the Miami apartment market 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. Miami climbs six spots this year to No. 25.

"The recent surge in conversion activity over the past few years will continue to have a significant effect on apartment fundamentals and investment activity in Miami during 2006 and beyond," comments Kirk Felici, regional manager of 's Miami office. "Conversion-related stock reduction has had a positive effect on vacancy and rent and will continue to support strong fundamentals this year."

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

• Asking rents are forecast to increase 4.2 percent to $1,064 per month in 2006.
  
  Fewer concessions will allow effective rents to gain 5.3 percent to $1,031 per month.
   

• Vacancy is forecast to drop by 10 basis points this year to 3.9 percent.
  
  Modest employment growth, combined with continued population gains, is expected to boost renter demand, resulting in lower vacancy this year. Conversion-related stock reductions could force the vacancy rate lower.
   

• Employers in the Miami metro are projected to add 21,000 positions in 2006.
  
  This 2 percent increase is relatively the same number of jobs added in 2005.
   

• Apartment builders are expected to add 2,170 units this year, up from 1,000 units in 2005.
  
  Condominium conversions, however, will continue to deplete inventory. In Hialeah, for example, more than 900 apartment units have been removed from stock, a 15 percent reduction.
   

• Investor interest will remain heated in Miami this year.
  
  Condo conversion buyers, apartment operators and foreign investors combined to push the median price up 20 percent over the last year to $87,500 per unit.
  

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.