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Office Sector Shows Strong Rebound

ATLANTA-Leasing picks up after the first negative absorption quarter in three years.

By Carl Cronan | Updated on August 05, 2008

ATLANTA-The city’s office sector appears to have made a strong rebound from its first quarter of negative absorption in the last three years. However, local brokers emphasize that the market is still vulnerable to lingering effects caused by the national economic slowdown.

Office vacancy in the Atlanta metropolitan area reached 19% at this year’s midpoint, with direct vacancy increasing only slightly in the second quarter to 16.3%, according to Jones Lang LaSalle. New office deliveries outpaced demand during the past quarter, with a few previous owner-occupied buildings returning to the leasing market after they were vacated and sold.

“The Atlanta market has traditionally recovered from cyclic downturns faster than other markets,” says Lanie Rea, local research manager with Jones Lang LaSalle. “As the local and national economies gain strength over the next few years, Atlanta’s office market can be expected to tighten once again.”

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