But the overall showing doesn't compare to periods in the late 1990s when quarterly absorption hit the million-sf mark regularly, Bowers says in his year-end analysis. Still, calendar 2005 was the first year with four consecutive quarters of positive absorption since 2000, he says.

"Although the Atlanta office market has clearly improved over the last three years with positive absorption, limited new deliveries and several office developments that are either being repositioned or torn down for residential or mixed-use development, the market has not improved has rapidly as we expected," Bowers says.

However, he says that "with a favorable economic outlook and hiring projections by a number of the major corporations, the office market is poised to improve dramatically in 2006, with limited projected deliveries totaling only 1.4 million sf and the ongoing conversion of office properties and or repositioning of properties to alternative use."

Pluses for the office market show it is "somewhat less concessionary, although rental rates have increased only marginally," Bowers adds. "Concessions and favorable lease terms still exist in the submarkets with the greatest square footage available, including I-285/GA 400, Downtown and I-75/I-285 submarkets."

A major factor in Bowers' optimism for the 2006 market is that 2005 was the slowest year in new deliveries in the 19 years the developer's office has been tracking the office market, he says. Only 72,274 sf of increased space availability will surface this year, based on new deliveries less office properties taken off the market, Bowers explains.

Ten of Atlanta's 16 submarkets showed positive absorption in 2005 and only six had negative numbers. Only one submarket had more than 100,000 sf of negative absorption--NE Expressway South. The overall average rental rate has increased to $20.34 per sf at the end of 2005 from $20.11 in 2004. The Buckhead/Lenox submarket's average asking rent tops the area at $25.14 per sf. Downtown's average is $21.30 per sf. Midtown is at an average $23.44 per sf.

The only large delivery in 2005 was Southern Co. Center, a 16-story, 94%-leased, 265,853-sf building occupied by Southern Co.'s headquarters staff, Balch & Bingham and Barry Real Estate investments.