Applefield Waxman :: Company Overview

NEWSLETTER	FOURTH QUARTER 2008

Overview	Despite the current economic challenges, our company continues to grow at a steady pace. We continue to hire new talent and promote deserving employees from within the company. We have also made headway on various projects and initiatives.

The Market	The South and Central Florida commercial real estate markets remain challenged. For the fourth quarter of 2008, the office vacancy rate increased to 22% (versus 19.6% last quarter) and the average lease rate remained at $17.00 PSF. Net absorption (the change in occupied square feet) of space was negative 175,000 SF (versus negative 86,000 SF last quarter). Construction activity decreased to 120,000 SF (versus 218,000 SF last quarter). Contributing factors which led to an increase in vacancy and the continued negative absorption included the delivery of two newly constructed office buildings and the addition of significant sublease space in southern Palm Beach County. For the fourth quarter of 2008, the industrial vacancy rate remained steady at 8.6% and the average lease rate decreased to $7.91 PSF (versus $8.07 PSF last quarter). Net absorption of space was negative 119,000 SF (versus negative 64,000 SF last quarter). Construction activity decreased to 160,000 SF (versus 250,000 SF last quarter). Looking forward, for the short term, the office and industrial markets should remain challenged. However, the region’s quality of life, historically strong business environment and emerging biotech economy may help shorten the correction. We believe the local commercial real estate market has strong underlying fundamentals and is well-positioned for long-term sustainable growth.

Brokerage	Our brokerage division continues its forward momentum. YTD 2008, we completed a number of noteworthy transactions including: Sale of 25,000 SF industrial building in Riviera Beach Sale of 1.5 acre hotel site in West Palm Beach Lease of 16,000 SF of professional office space in Jupiter Lease of 15,000 SF of professional office space in Melbourne Lease of 10,000 SF of professional office space in Palm Beach Gardens

Property Management	Our property management division continues its steady performance. YTD 2008, we successfully managed fifty-two buildings within our core market. We recently landed two new commercial property management assignments and continue to focus on building our infrastructure. In addition, we hired Andy Stangret as a maintenance engineer.

Investment	Our property management division continues its steady performance. YTD 2008, we successfully managed fifty-two buildings within our core market. We recently landed two new commercial property management assignments and continue to focus on building our infrastructure. In addition, we hired Andy Stangret as a maintenance engineer.
Miscellaneous	We recently promoted two key employees within our organization. Mali Liberty was appointed President/COO and Vincent Hermanns was promoted to Director of Property Management. These promotions will allow us to grow our company, increase our level of service and, at the appropriate time, expand our geographic reach. We congratulate both Mali and Vincent on these well deserved appointments.

Applefield Waxman is a diversified commercial real estate company that specializes in the South and Central Florida markets. We offer brokerage, property management and investment services. Our headquarters are located in Palm Beach Gardens with regional offices in West Palm Beach, Lake Park, Port St. Lucie and Melbourne. To learn more, please visit our website at www.applefieldwaxman.com or call (561) 687-5800.