The numbers reflect a continued slowdown in the economy from yearend 2000 with 560,751 square feet of net absorption, an increase of about 260,000 square feet over the second quarter.

Rental rates also decreased from $21.64 per sf to $21.58 per sf. With deliveries of 1.6 million sf, vacancy rates decreased from 90.3% to 89.39%. Square footage availability also increased over one million sf to 12.76 million sf.

The Bowers report anticipates the fourth quarter will improve, even though 2.25 million sf will be delivered with a large amount being in two large urban developments, Alliance Center in Buckhead and the Millennium in Midtown. In addition, sublease space has increased from 4.5 million sf to 5.3 million sf.