NEW YORK, 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 the New York City-Manhattan apartment market will be supported by an occupancy boost 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. New York City-Manhattan improves four positions this year to No. 5.

"Strong operating fundamentals and irreplaceable locations have supported investor interest in Manhattan properties year after year," comments Mitchell R. LaBar, managing director of and regional manager of the Manhattan office. "While Manhattan's investment market remains heated, apartment market fundamentals will strengthen this year. Vacancy is forecast to decline, while asking rents are set to rise 3.7 percent, the greatest rate in five years. In addition, owners will continue to trim concessions, which are projected to drop to their lowest level since 2001."

Following are some of the most significant aspects of the New York City-Manhattan Apartment Research Report:

• Asking rents are projected to climb 3.7 percent to $3,148 per month by year-end 2006.
  
  Effective rents in Manhattan are expected to advance 5 percent this year to $3,075 per month.
   

• The vacancy rate is forecast to fall 10 basis points to 3.6 percent by the end of 2006.
  
  Despite an uptick in completions, tenant demand for apartments in Manhattan remains robust.
   

• Solid job growth will support improvement in Manhattan apartment market fundamentals in 2006.
  
  Total employment in New York City, including the outer boroughs and Putnam, Rockland and Westchester counties, is forecast to increase 1.6 percent in 2006, a gain of 66,900 jobs.
   

• Apartment builders are expected to complete 3,500 units in Manhattan in 2006, up from 3,300 units last year.
  
  Approximately 2,400 new units are under way and scheduled for delivery in 2007 and 2008.
   

• As prices continue to climb, small investors will increasingly turn to less costly assets in the outer boroughs.
  
  Properties in Brooklyn, for example, were selling at a median price of $139,000 per unit last year. Cap rates for local properties run 150 basis points to 200 basis points more than Manhattan.
  

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.