ATLANTA-Despite the fact that the office space vacancy rate is at the 20-year high of 20.28%, Atlanta’s office market freefall has slowed. Investors and landlords are holding out hope for job creation to drive up occupancy rates, but a significant government X factor could stymie a short-term recovery.

That X factor is a White House-mandated reduction of real estate-related costs to the government across the country. Legislation is being considered that would liquidate certain owned assets and consolidate or renegotiate leased assets.

John Connor, principal of turnaround management firm Anderson Bauman Tourtellot Vos, tells GlobeSt.com that the US government owns or leases at least eight million square feet of office space in the Atlanta region. With about 2.2 million square feet in leases expiring from 2011 through 2015, and the potential for the government to sell the owned property and lease it back at or below market rates, he says this legislation could have a significant impact on Atlanta's office real estate market.