TAMPA, Fla., 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 strong economic gains, along with condo conversions, will support tight market conditions and solid revenue growth in Tampa 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. Tampa climbs seven places this year to No. 12.

"Investment in Tampa apartments is increasingly dominated by condominium conversion transactions," comments Steven M. Ekovich, first vice president of and regional manager of the Tampa office. "Sales involving high-end conversion properties in waterfront and downtown locations led the market during the first half of last year, but by the second half, the conversion trend had begun to take hold metrowide. As a result, sales volume in 2006 is expected to exceed the record level posted last year."

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

• Asking rents are expected to rise 3.3 percent to $801 per month in 2006.
  
  Falling vacancy will allow owners to reduce concessions, driving effective rents up 6 percent to an average of $772 per month. The University North submarket is forecast to lead with over 5 percent rent growth, while Central Tampa and St. Petersburg gain more than 4 percent.
  

• Vacancy in the Tampa metro area will fall 70 basis points to 5.1 percent in 2006 after registering a 150 basis point improvement in 2005.
  
  Economic growth is driving demand, though stock reductions due to condo conversions are also contributing to tightening market conditions.
  

• Tampa employers are expected to add 55,000 jobs in 2006, a 4.2 percent gain.
  
  Growth will be strongest in the professional and businesses services sector, which is expected to add 19,000 new positions.
  

• Deliveries of new apartments will fall to 1,480 units in 2006, down from 2,500 units last year.
  
  The limited number of new units being added to the market this year will fail to keep pace with reductions in inventory due to conversions, which is welcome news for apartment owners.
  

• Interest will continue to shift from prime waterfront areas to locations near major employment centers. 
  
  Activity in St. Petersburg is expected to increase in 2006. Property values in the area have risen dramatically over the past few years along with the rest of the market but still remain relatively low at a median of $55,000 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.