In upgrading its outlook from "stable" to "positive andraffirming its triple-"B" corporate credit rating, S&Pdescribed the West Coast focused office and industrial trust one of"the most solid real estate companies within its rating category,"noting its 41 million-sf portfolio with a market capitalization ofabout $6 billion.

The kudos are based in part on Spieker's substantial West Coastinroads, particularly in the ultratight Bay Area market: "Thisfocus provides for a commanding market presence and good assetquality," if not a very geographically diverse one, states S&Pin it's report.

The San Francisco/Bay area markets alone contribute asubstantial 48% of the trust's total net operating income,according to the report. In addition, the trust has become"increasingly dependent" upon the high-growth technology sector,which currently generates about 24% of the company's revenues."Spieker does have an excellent track record in this market,however, and the dispersion of properties throughout localsubmarkets (Silicon Valley, East Bay, Peninsula) also helps tobalance this concentration," the report concludes.