Office Completions and Absorption Decelerate in Atlanta

ATLANTA, GA — Atlanta office fundamentals are expected to soften this year as modest deliveries are met with conservative leasing activity and a less robust economy, according to a second-quarter Office Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm.

The first quarter of 2008 marked the first time in three years that the local office market recorded negative absorption, and vacancy edged higher in the second quarter as well.

“Institutional investors will continue to exercise caution when making acquisitions, although activity could pick up if the national economy steadies later this year,” says John Leonard,(top right photo) regional manager of the Atlanta office of Marcus & Millichap.

Following are some of the most significant aspects of the Atlanta Office Research Report:

· Employers will add 1,000 new jobs in 2008.
· Developers are forecast to bring 1.9 million square feet of new office space to Atlanta this year.
· Vacancy is projected to finish the year at 16 percent.
· Asking rents are forecast to increase 2.4 percent to $21.70 per square foot.
· Effective rents will climb 2.2 percent to $18.18 per square foot.

For a copy of the complete Atlanta Office Research Report, as well as reports on other markets nationwide, visit our website at http://www.marcusmillichap.com/.
Press Contact: Stacey Corso
Communications Department
(925) 953-1716