The northern end of the peninsula seems to be enjoying thelion's share of the spoils in the Bay Area space crunch.Encompassing the cities of Burlingame, Millbrae, San Bruno,Brisbane, South San Francisco and Daly City, direct vacancy ratesfinished the quarter at an amazing 0.5%. San Bruno, Brisbane,Burlingame and Millbrae all came in with vacancies at or under0.1%.

With the dotcom shakedown in full swing in the area, quite a bitof sublease space has been entering the market. Including availablesublease space, the total availability rate for the market hoversjust above 4%. Still, lease rates have remained on the upswing, andwith large amounts of new space coming onto the market in South SanFrancisco, San Bruno and Redwood City, the area remains a market towatch. The most sobering statistic comes from looking at the markettoday versus one year ago. In that time, class A rents have risen132%, and class B rents on the peninsula have followed closely at121%.