"The Atlanta investment market will continue to garner the interest of institutional and private investors, who are attracted to the stability of the local economy and long-term prospects for firming of operating fundamentals, says Marcus & Millichap regional manager of the Atlanta office John Leonard.

The report states that office properties traded for a median price of $150 per sf during 2007, a 15% increase from a year ago. Asking rents were projected to increase 3.2% to $21.01 per sf during 2007, while effective rents were forecast to climb 4.2% to $17.24 per sf.

According to a Grubb & Ellis Q3 office market report for Atlanta, the market posted a 17.6% vacancy rate at the end of the quarter, reflecting a 60 basis point drop from the previous quarter. Net absorption rose to over one million sf for the quarter, with the most corporate movement occurring in the Central Perimeter, Cumberland/Galleria and Downtown submarkets. Given the tightening market vacancy along with more than 4.6 million sf under construction, average quoted rental rates for the overall market subsequently rose from $21.81 to $22.02 per sf, full service.