Brokers within the industrial market remain hopeful about the Atlanta region's long-term prospects, but face a sobering reality that this year will see rising vacancy as companies "fine-tune" their supply chains, along with lower rates or increased concessions, Cushman forecasts. The sector will also continue to see short-term renewals until the market stabilizes, says CBRE's senior vice president Wit Truitt. "When the market starts turning, in the third or fourth quarter, we will start to see pent-up demand, which will accelerate leasing activity," he adds. The good news is that both state and local incentives should be plentiful for companies choosing to move to new areas in the region, Truitt reports.

Before the overall market can see some positive numbers, banks will need to resume lending and investors will have to see the results of proposed government aid. "I don't think anyone really understands the impact of the bailouts and the extent to which that will draft some energy into the marketplace," says JLL's Gore. "There's a significant amount of capital coming into the system that will ultimately have an impact on the recovery."

Atlanta is expected to rebound earlier than other US markets based on its history, local experts agree. "During the first decade of this century, Atlanta has continued to grow dramatically and continues to be among the fastest-growing large metro areas in the country and the number-one city for young college professionals," said Richard Bowers, president and CEO of Richard Bowers & Co. The city that local experts say drives business throughout the Southeast will be at the forefront of recovery.