Study sees continued global growth in '98.

New America International (NAI), one of the world's largest networks of commercial real estate services, has just released its 1998 Real Estate Planning Guide, a comprehensive survey of conditions and trends in commercial real estate worldwide.

The just published guide provides complete information on values, trends, economies, social factors and opportunities in 159 top markets in North America, South America and Europe.

"This is the most comprehensive guide we've ever published," said Jeffrey M. Finn, president and COO of New America International. "It covers every major and mid-sized market in the United States, Canada and Mexico, plus select markets in Argentina, Brazil, Venezuela, and Western and Central Europe. For the first time, we've even included coverage of emerging markets where accurate, up-to-date information has traditionally been very hard to come by. At a time when the business of real estate is truly global, the Planning Guide provides an invaluable tool for real estate executives involved in making decisions on a worldwide basis."

This year's Guide includes:

* A "big-picture" analysis of the global real estate situation, with number-packed but easy-to-read outlines of the general situation in the United States, Canada, Mexico, Benelux, Germany, France, the United Kingdom, Japan, China, South Korea, Indonesia, Thailand, Malaysia, the Mercosur countries (Brazil, Uruguay, Argentina, and Paraguay), Chile and Venezuela;

* A remarkably expanded review of the U.S. economy, including national averages for rental and vacancy rates in various categories over the past three years, discussions of how the global economy impacts the U.S., and of how governmental changes affect our economy;

* Separate analyses of economic activity in New England, the Middle Atlantic States, the Midwest, the South, the Mountain States and the Far West, (including charts showing job growth);

* Detailed reports on the three main segments of commercial real estate - industrial, office and retail - including discussions of what's hot and what's not in terms of industries, products, services, tenant concerns, demographics and sites, and charts showing levels of vacancy and construction;

* Individual analyses of 159 commercial real estate markets, each written by a realtor from the New America International member firm that covers that market. Each analysis includes: an economic overview of the metropolitan area in question, including population, employment and economic statistics; a chart showing high, low and average rental rates per square foot for new, Class A and Class B office space in the central business district and the suburbs, for downtown, mall or shopping center retailing, and for various types of industrial space, as well as price ranges for land available for development; a report of approximately 400 words giving a general rundown of the market conditions in the area.

Each report is signed by the NAI member firm for that area, and readers are encouraged to contact the individual authors for more information about specific markets.

Here's a quick glimpse at what's going on in the various regions of the United States, according to the 1998 Real Estate Planning Guide:

Northeast

New York City and the Washington, DC suburban area seem to be the top performers in the office market. In general, CBDs in the Northeast are seeing considerable revitalization, and many companies that once would have gravitated to the suburbs are now taking CBD space. Vermont, New Hampshire and Pennsylvania are all experiencing strong demand for industrial space - both warehouse and manufacturing.

The performance of retail is somewhat spotty, with the latest trend being towards mammoth urban and suburban developments that combine entertainment with traditional retailing. Midtown Manhattan is making a spectacular comeback in terms of retail development; Pittsburgh is also reporting strong numbers in retail.

Midwest

The region's real estate markets continue to accelerate. Many areas are developing diverse economic bases to avoid the downturns occasioned in the past by over-reliance on one industry or business to drive the local economy. Omaha, Kansas City and Sioux Falls, SD are seen as strong office markets. Strong industrial markets include St. Louis, MO; Terre Haute, IN; Toledo, OH; and Sioux City, IA. Terre Haute is also adding retail, as is Chicago.

It appears that Chicago is ripe for new development, in general: its downtown office vacancy rate stands at less than one percent; downtown retail, at less than two percent.

Southeast

Florida is the strongest performer in a generally strong region. Naples, FL was cited as the national leader in building permits issued per capita in 1997, and Jacksonville is also exceptionally active. For office space, the Charlotte, NC CBD is considered by some to be the most attractive market in the nation; there, the banking industry seems to be at the forefront of development. The West Palm Beach, FL CBD is undergoing a massive redevelopment that includes office, residential and retail pieces. Various industrial developments are underway in Jacksonville, FL; Richmond, VA.; Raleigh/Durham, NC; Huntsville/Decatur, AL; Roanoke, VA; and Columbus, GA.

Retailing is inconsistent, with some markets resurgent and others overbuilt and slowing down.

Southwest

While the oil and gas industries continue to be the backbone of the Southwest's economy, the region is diversifying into areas such as financial services, technology, communications and manufacturing. Dallas, Wichita and Baton Rouge are experiencing considerable job growth, and Class A office space is in high demand in Oklahoma City. Office occupancy and rental rates are rising throughout Texas, particularly in Houston, Austin and the Fort Worth area. Industrial space is particularly in demand in southern Texas, as trade with Mexico continues to grow. In retail, entertainment-anchored centers and malls located near heavily traveled corridors are the most popular developments.

West

The entertainment and resort industries in markets such as Las Vegas, Los Angeles and Orange County, CA seem to be among the most powerful forces driving the real estate business in the West. Office, industrial and retail segments appear to be growing throughout the region, with Seattle, Phoenix, Portland, Salt Lake City and Albuquerque among the leading office gainers. San Francisco County has seen considerable retail growth of late, as has Boise, Idaho.

Nationwide

Economic and real estate trends were very positive in 1997, and are likely to remain so for the coming year, the Guide states. Office vacancy rates fell to single digits in many metropolitan areas, and market rental rates began to exceed feasibility rates in a number of markets, prompting new speculative construction. Demand for bulk warehouse space is leading to considerable build-to-suit development. Rental rates, in all categories except retail, rose from five to 10 percent in 1997.

Retail seems to be the only segment of the commercial real estate market that appears "iffy" at present, with regional malls feeling the impact of power centers and neighborhood centers.

New America International (NAI) is a global partnership of real estate service providers with more than 150 member firms serving over 200 markets throughout the world. NAI provides brokerage, financial and investment services, property/facilities management and strategic advisory services to the office, industrial and retail sectors, and specialized services to the restaurant/entertainment, hospitality, seniors housing, land, biotech and telecommunications niche markets.

The 1998 Real Estate Planning Guide is available from New America International for $295. To order, call [phone] or fax [phone].