"With the economy mired in a recession that is expected to surpass every previous recession since the 1930s in terms of direction, depth and duration, companies focused primarily on consolidations and renewals in an effort to fine-tune their supply chains," wrote Chris Shaner, senior research associate with Cushman & Wakefield's Atlanta office. He noted that development activity slowed throughout the metropolitan area in the first quarter, with 200,000 square feet completed and only 156,160 square feet under construction.

Overall vacancy increased to 9.7% in the first quarter, the city's highest level in two years but still well below the 14.6% peak reached in 2004, Shaner said. Direct asking rents remained at $4 per square foot through the first three months of this year, while just 532,124 square feet of investment sales activity was recorded for the period, he said.

Industrial transactions that are under way in the Atlanta market are a bit different than the usual warehouses and manufacturing space. For example, Colliers Spectrum Cauble has subleased a 35-acre trucking terminal in South Atlanta to ConGlobal Industries Inc. for storage of empty containers and maintenance operations.