By comparison, second-quarter 2000 vacancies overall were 8.43%; net absorption, 1.6 million sf; and total existing square footage of 111.53 million or 6.87 million less than today's inventory.

Suburban submarket vacancies are spiraling upwards. For example, the smallest of the total 17 submarkets, the 212,000-sf I-75 corridor, has a class A vacancy level of 33% and a class B vacancy of 13.08%. But its 75,300 sf of class C product is 100% leased.

Sublease space has grown to 4.5 million sf but still not as high as in the early 1990s. However, more sublease space is on the way, the report notes. BellSouth is consolidating various major centers while the Federal Reserve is relocating and consolidating to Midtown later this year.