The overall Peninsula office market experienced 20,340 sf ofpositive absorption in the quarter. The top performer was the 3.5million-sf Foster City submarket, which posted 103,567 sf ofpositive net absorption to lower its direct vacancy rate to 1.5%and its overall vacancy rate (including sublease space) to 2.7%,according to the report. The average asking lease rate in FosterCity is $4.22 per sf per month, within a couple of pennies of theweighted average market-wide.

The worst performer in the quarter was the 10 million-sf RedwoodShores/Redwood City submarket, which posted 91,000 sf of negativenet absorption, raising its direct vacancy rate to 10.4% and itsoverall vacancy rate to 14.4%. The weighted average asking leaserate there is just under $3.98 per sf per month. Both Foster Cityand Redwood Shores located in central portion of the Peninsula.

The largest submarket on the Peninsula, the 8.2 million-sf PaloAlto/East Palo Alto area at the southern end of the Peninsula,posted approximately 27,500 sf of positive net absorption, takingits direct vacancy rate to 4.7% and its overall vacancy rate to5.4%. The weighted average asking lease rate there was $5.68 per sfper month.