The 371-building, 83-million-sf class A market is 24.7% vacantwith 1.2 million sf of new product under construction. The70-million-sf class B market, comprised of 1,216 buildings, is19.9% vacant with 260,994 sf of new construction under way. And theseven-building, 262,888-sf class C sector, with no new constructionon tap, is 20.6% vacant. There is a total 36.2 million sf ofavailable office space on the market.

Worse, net absorption grew to a negative one million sf, up froma negative 900,000 sf in fourth quarter 2003. Buckhead, Midtown andNorthlake are the only submarkets showing positive absorption. Mostof the new construction is in Midtown where the 138-acre,$200-million Atlantic Station redevelopment continues to be thedriving engine of the area's new growth pattern, area brokers tellGlobeSt.com.

A lack of strong office leasing demand has also battered themarket, says Colliers Cauble research coordinator Scott L. Amosonwho authored the first-quarter report.