A Q1 analysis by Atlanta-based King Industrial Realty Inc. puts overall vacancies at 18.8% versus 18.2% in Q4 of 2002. This was the area's ninth straight quarter of vacancy rate increases.

Net absorption was a negative 1.18 million sf compared to a negative 582,419 sf in the previous period and the eighth consecutive quarter of negative net absorption.

"On their face, these vacancy and absorption figures paint a pretty gloomy picture of the first quarter 2003 marketplace," says King analyst and broker Stephen C. Ratchford. But, he says, "It's important to understand that these two statistical indicators reflect the impact of one deal"--the federal General Services Administration vacating more than one million at a distribution facility in the south Fulton County submarket.