Results of Comprehensive Survey Surface Resiliency Across Retail, Industrial, Office and Multi-Family Properties

NEW YORK – September 8, 2003 – PRIMEDIA’s National Real Estate Investor, the leading authority on trends in the commercial real estate markets, announced today the results of the 2003 Commercial Real Estate Investment Survey, an annual special research report conducted in partnership with Marcus & Millichap Real Estate Investment Brokerage Co. The comprehensive survey reveals future investment trends across the multi-family, retail, office and industrial sectors.

“This annual, in-depth survey is the most comprehensive survey of attitudes among private and institutional investors in the industry,” said Geoff Lewis, editorial director overseeing PRIMEDIA’s National Real Estate Investor. “It tells how real estate investors are responding to the shifts in the national economy and to the challenging conditions in commercial real estate today. And it looks forward—helping anybody interested in commercial real estate to understand just where these key investors are likely to place their money in the year ahead.”

“The challenged economy of the past two years has shown real estate’s resiliency, while re-igniting long-term interest in real estate as a hard asset,” notes Harvey E. Green, president and CEO of Marcus & Millichap. An introduction to the survey reveals a dominant theme of cautious optimism underpinning the survey’s findings. Labeled a “safe haven” for investors, capital continues to flow into commercial real estate spurring a $5.5 billion increase in the total value of assets in real estate investment trust (REIT) mutual funds for first-half 2003. Among the study’s major findings:

  • Unexpected factors affecting the economy

    (37%), downward pressures on rent (36%) and high vacancy rates (35%) round-out investors’ top concerns for the coming year

  • Investor demand for property remains high with 70% planning to increase investments

    in commercial real estate over the next 12 months and 30% of that majority planning to increase holdings by 11-25%

  • 38% expect apartments to experience the biggest effective rate growth in 2004

  • Optimism about economic recovery

    gaining steam with 37% believing the next 12 months will be stronger

  • Renewed commitment to upgrades – 47% have plans to redevelop current investments, 44% plan to invest in or acquire properties for renovation/expansion

  • 52% see apartment values increasing over the next year

  • Grocery

    and drug-anchored centers show most promise in retail

  • Majority believe office and industrial effective rents won’t budge over next 12 months

  • 44% indicate that interest rates will climb higher in the coming year

Data for the survey conducted by PRIMEDIA’s National Real Estate Investor and Marcus & Millichap Real Estate Investment Brokerage Co. was collected between April and June 2003.

Questionnaires were mailed to a list of NREI finance subscribers and Marcus & Millichap’s private and institutional clients. A link to the survey was also posted on the NREI Web site. The purpose of the study was to gauge future investment plans and determine which property types - office, industrial, retail and multi-family – were most attractive to investors. A total of 561 usable entries were tabulated.

Complete results of the comprehensive 2003 Commercial Real Estate Investment Survey can be found in the current, September 2003 issue of PRIMEDIA’s National Real Estate Investor or by visiting www.nreionline.com.

About PRIMEDIA’s National Real Estate Investor
National Real Estate Investor is the business magazine that follows the money in all classes of commercial real estate. It is the leading authority on trends in the real estate markets, providing top-level executives with in-depth analysis of important developments in the industry. Its audited readership represents a cross-section of disciplines: brokerage, construction, development, finance/investment, property management, corporate real estate, and real estate services. No other publication provides as much independent research on the topics that pertain to the office, industrial, retail, hotel and multifamily markets as National Real Estate Investor. Integral to this coverage are the weekly NREI Newsline e-newsletter and daily postings on the Web site, www.nreionline.com.

About PRIMEDIA
PRIMEDIA is the leading targeted media company in the United States, with positions in consumer and business-to-business markets. Our properties deliver content via print as well as video, the Internet and live events and offer highly effective advertising and marketing solutions in some of the most sought after niche markets. With 2002 sales from continuing businesses of $1.5 billion, PRIMEDIA is the #1 special interest magazine publisher in the U.S. with more than 250 titles. Our well known brands include Motor Trend, Automobile, New York, Fly Fisherman, Power & Motoryacht, Creating Keepsakes, Ward's Auto World, and Registered Rep. The company is also the #1 publisher and distributor of free consumer guides, including Apartment Guides. PRIMEDIA Television’s leading brand is the Channel One Network and About is one of the largest sources of original content on the Internet. PRIMEDIA's stock symbol is: NYSE: PRM.

About Marcus & Millichap
Marcus & Millichap Real Estate Investment Brokerage Co. has established itself as a leading and expanding investment real estate company, with more than 700 brokers in 34 markets throughout the United States. Specializing exclusively in investment brokerage, the firm has developed a high level of transaction and marketing expertise that includes state-of-the-art communications technology and cutting-edge market research and underwriting. In 2002 Marcus & Millichap facilitated a record transaction volume, totaling more than $7.7 billion. To learn more about the firm or to access research reports on markets nationwide, visit www.marcusmillichap.com.

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Media Contacts:

Amanda Cheslock, 212-446-1884 acheslock@sloanepr.com

Liz Airhart, 212-462-3527 eairhart@primediabusiness.com

Larry Gray, 925-979-9810 lgray@marcusmillichap.com