"Real job creation will occur in conjunction with changes in venture capital funding levels and related capital formation," says Sheats. "The fear versus greed equation is swinging back in favor of greed."
That movement will come none too soon for the 10 area submarkets encompassing 1,812 buildings monitored quarterly by Colliers Cauble. The firm's newest numbers show a total 34.7 million sf of vacant space among class A, B and C office markets.
Hurting the worst are West Atlanta with a 29.3% vacancy level in 22 buildings totaling 1.3 million sf; Central Perimeter, 27.4% vacancy in 256 buildings totaling 27 million sf; and North Fulton, 26.3% vacancy in 245 buildings totaling 19.6 million sf.
Even Buckhead and Midtown, two of the area's most aggressively developed hubs, are in the double-digit vacancy column. Buckhead is at 21.3% vacancy in 94 buildings totaling 13.5 million sf. Midtown is 23.3% vacant in 115 buildings totaling 15.7 million sf.
New construction being completed totals 1.7 million sf, compared to 2.4 million sf delivered in all of 2003. Central Perimeter, with one million sf of new product delivered in 2003, has only 39,000 sf under construction to date. Midtown Atlanta, with 1.2 million sf under construction, leads the submarkets in newly planned space. Buckhead had no new construction in 2003 but has 212,657 sf under construction to date.
Sheats notes local businesses began to increase their spending on capital equipment during the second half of 2003, giving the office leasing community hope that companies will be adding to staffs that will need increased operating space.
"The pace of capital spending will increase in 2004 as Moore's Law creates opportunities for new technologies and upgrades of existing ones," the broker says. "Spending on new technologies will again lead the economic recovery in 2004.
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