With asking rates between $32- and $38 per square-foot per year,two of the development's five buildings are 97% leased (505 14thand 555 12th), City Square is 95% leased, 1111 Broadway is 94%leased and 1300 Clay is 91% leased. Shorenstein's leader John Dolbytells GlobeSt.com that Oakland sometimes fares better than mostother Bay Area locations in times of trouble.

"Most companies here are conservative, not boom and bust," hesays. "Sometimes in downturns Oakland kind of does well because itis the low-cost alternative in the Bay Area."

Sometime next year--probably in the second or third quarter--APLwill vacate 140,000 square feet on the lower floors of 1111Broadway. Dolby isn't concerned, in part because APL is a soundcompany with a lease commitment through 2016, but also because inthe past sublease space within the building has never been vacantfor long.