Average rental rates ratcheted up to $21.01 psf, and theoccupancy rate climbed to 91.7%. Absorption outpaced delivery inthe first half, accounting for the higher occupancy rate. Occupiedoffice space breached the 100 million sf level and continues torise.

The Urban Corridor, comprised of downtown, Midtown andBuckhead/Lenox, is robust. Just five years ago, companies wereleaving the downtown area for livelier surroundings and more modernspace in Midtown and Buckhead. Others were exiting the urban scenecompletely, heading north to the exploding North Fulton marketwhere new buildings were, and still are rising in droves.

Space in Buckhead was scarce. In 1995, the Urban Corridoroccupancy rate was 86.9% and the average rental rate was $18.93psf. Today, occupancy at mid-year was at an all-time high of 94.6%.Suburban markets are at 90.3%. Led by Buckhead/Lenox's rental ratesof $25.28 psf, average rates for the Urban Corridor are at $23.29psf, up from $22.64 psf at year-end 1999.