Hanssen's report says that for 5 weeks straight, the SanFrancisco direct office vacancy numbers have held between 12.5% and12.8%, with sublease space holding at 20.75%. The overall rentalaverages have stayed consistent at $31.50 per sf.

The market seems to be absorbing as much space as it is addingeach week, which is a good sign that the market may be stabilizing.In addition, the rental and vacancy rates are now equal to the 3rdquarter of 1998, which is when Hanssen says most agree was thebeginning of the dot com expansion.

"As a broker I am now evaluating rental rates for that period,against current asking rates for particular buildings that mytenant-clients are interested in," says Hanssen. "Most landlordsare now pricing their available inventories at or close to their1998 asking prices, which again supports that landlords arebecoming very realistic to the markets."

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