Marco Island, FL October 7, 2006 -- Trend-setting levels of job growth, employment rates and population gains—matched by a fast pace of condo conversions—have resulted in strong rental growth in Naples & Marco Island Florida's multifamily market. Few scheduled deliveries for the rest of 2006 are expected to heighten these conditions across the state.

The condo conversion craze significantly diminished apartment supply and greatly contributed to the stellar apartment performance now being experienced. As the amount of new rental units continue to decrease, strong rent growth at existing properties will persist.

Strong employment, affluent residents, escalating home prices and high property values make multifamily investment in Naples extremely attractive. Current demand for area condos is extraordinary. Between 1990 and 2006, Collier County's population as a whole increased substantially.

Rents across all unit types and ages average $1,335. The sub-market has shown an amazing 13.5 percent rent increase between March 2005 and March 2006. Local residents pay rental rates 25 percent above the regional norm.

Investors should continue to see strong performance from Florida properties. The positive economic outlook will continue to attract new residents—and affordable housing will be at a premium.