"A lot of spaces, not just by telecom or high-tech companies, are being dumped back onto the market," Travis tells Globest.com. "Even corporate firms have looked to dispose of space as lots of those companies have overheated."

According to C&W's research, the Georgia 400, Buckhead and Midtown submarkets have had the most difficulty turning sublease space, due to their large concentrations of telecommunications and tech firms. Respectively, the availability of sublet product in those areas is 10.3%, 9.6% and 6.8%.

Overall rental rates are cheaper than direct space, Travis notes. For instance, current average asking rents for class A space hover around $20 per sf in the metro area. But sublease space can be leased at a bargain--anywhere from $12 to $18 a sf--depending on how motivated a landlord is to move that space.

"Typically, sublease spaces cost 25% less," Travis says. "You're looking at substantial discounts from what the direct rent is. The firms that tend to gravitate toward sublease (product) are looking for turnkey spaces with credit sublandlords."

Most tenants prefer offices that are fully furnished and pre-wired for telecommunications. And that's the trend Travis sees for the remainder of 2002 and into 2003--a stabilization of sublease space and a return to healthier overall market fundamentals.

"Going forward, well-appointed turnkey spaces with credit sublandlords will continue to move quickly," the researcher says. "Other spaces will be taken sporadically as tenants find the right combination of rent, term, condition and risk." He says, "Eventually,the rest will return as direct space."