SEATTLE, Feb. 6, 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 Seattle apartment market will benefit from solid job growth and a robust improvement in fundamentals.

 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. Seattle improves four positions this year to No. 14. 

"Seattle apartment owners will enjoy marked improvement in rental market fundamentals in 2006, as the recovery that began during the second half of 2004 continues to gain momentum," comments Gregory S. Wendelken, vice president of and regional manager of the Seattle office. "Fueled by a large number of out-of-state and institutional buyers, investment activity has been brisk and is expected to continue at a steady pace in 2006. Condo converters have been especially active and are expected to continue to drive up values in the quarters ahead."

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

• Asking rents are expected to climb 2.9 percent this year to $846 per month. 
  
  Owners will scale back on concessions, allowing effective rents to climb 5.2 percent to $813 per month this year.
  

• A 90 basis point decline in vacancy to 6 percent is expected by year end. 
  
  Growing tenant demand, spurred by healthy economic growth and rising home prices, will continue to reduce the market wide vacancy rate.
  

• Employment is forecast to expand 2.9 percent in 2006, an addition of 48,000 positions.
  
  The professional and business services sector will lead job creation, powered by the region's healthy population growth. Solid expansion in this sector, as well as leisure and hospitality, will help strengthen apartment demand.
  

• Completions are expected to reach 2,600 units in 2006, a marked increase from last year. 
  
  Though still well below historical levels, development activity is on the rise as builders respond to improving fundamentals.
  

• Despite rising prices and falling cap rates, the Seattle apartment market will remain popular with investors. 
  
  Outside of the pricey central Seattle submarkets, buyers are increasingly finding affordable properties in fast-growing Everett and Renton, where gross revenues are expected to rise at an accelerated pace.
  
  

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.