"Investment activity has shown no signs of weakness," John M. Leonard, regional manager of the firm's Atlanta office, says in a prepared statement. "Atlanta's retail market has held up well, considering the economic malaise over the last year."

Rising vacancies have pushed rents down 5% to an average $15.50 per sf. Average rents for new construction fare better at $22 per sf. Buckhead boasts the highest average at $32 per sf. Average asking rents have been sliding for the last 18 months.

Leonard projects vacancies will rise 0.3 percentage points over the next six months because of slow absorption. "Rents will remain under pressure for the remainder of 2002 before experiencing improvement in 2003 with a 2% increase," Leonard says.