ORLANDO, Fla., 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 Orlando's apartment fundamentals will remain robust this year due to strong employment growth and limited new supply.

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. Orlando improves four places this year to No. 17.

"Investment in Orlando apartments is dominated by condo conversion deals," comments Steven M. Ekovich, first vice president of and regional manager of the Orlando office. "Conversion buyers remained active at the end of 2005 and are expected to maintain a steady pace of acquisitions this year, buoyed by strong demand for affordably priced housing."

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

• Falling vacancy will allow owners to raise asking rents by 3.7 percent this year to $845 per month.
  
  A decline in concessions will cause average effective rents to rise 6.3 percent to $807 per month.
   

• Vacancy is forecast to decrease by 80 basis points to 4.5 percent by the end of 2006.
  
  Strong underlying demand for apartments, along with a reduction of rental inventory due to condo conversions, will fuel the decline.
   

• Orlando boasts one of the fastest-growing employment markets in the country, with a 4.3 percent expansion forecast in 2006.
  
  The construction, and leisure and hospitality sectors are expected to create the most jobs this year, adding 13,000 positions and 11,000 positions, respectively.
   

• Deliveries are projected to fall to 1,230 units in 2006 after approximately 2,500 units were added in 2005.
  
  High construction costs have encouraged investment in existing rental properties, while a hot housing market has stimulated conversion of rentals to for-sale units.
   

• Transaction velocity and pricing will remain high as demographics, declining housing affordability and the cost of new construction continue to support condo conversions.
  
  Cap rates are being driven to as low as 4.5 percent to 5.0 percent for high-end properties in prime areas such as Metro West and Lake Buena Vista, while cap rates for Class B/C assets in suburban locations are at approximately 7 percent.
  
  

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.