The report, by New York-based media industry investment bankerVeronis Suhler, predicts that spending on Internet advertisementswill mushroom to $25 billion four years from now from $5 billiontoday. Total spending in the Internet marketplace "will grow at aprojected 22.7% compound annual rate over the 1999-2004 period --39.5% for advertising and 9.2% for online access," the report says."The rapidly expanding base of Internet users is driving growth inboth of these segments."

Orange County is the hotbed of Southern California's high-techbusiness, and Internet-related firms have been driving the localoffice market for more than two years. The new report should helpsoothe the nerves of commercial landlords in the area, many of whomhave been fretting that some of their dot-com tenants may be unableto pay their rent if online sales and advertising revenue don'tkeep growing.