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Third-Quarter Office Occupancy Inches Ahead as Rates Drop 24 Cents per SF

ATLANTA-Third-quarter data shows a positive increase in absorption, yet 2002 is "the worst year in absorption since we began tracking office market data in 1987," Richard E. Bowers, president, Richard Bowers & Co., says in a new market report.

By Marita Thomas | Updated on October 23, 2002

ATLANTA-Although third-quarter office statistics by locally based Richard Bowers & Co. reflect a positive increase in Atlanta-area CBD activity and absorption, Richard E. Bowers, president, says “calendar year 2002 will be the worst year in absorption since we have begun tracking office market data in 1987.”

Occupancy rates increased from 86.30% to 86.39% since last quarter, and rental rates decreased from $21.53 per sf at mid-year to $21.29 per sf, according to the Bowers report. Bowers says there have been “significant concessions in free rent, lease assumptions, above standard improvements and escalations.”

In addition to what Bowers says is “near record” space availability among owners, “there is still approximately 5 million sf of sublease space on the market.”

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