Over one million sf of class A space was under construction inthe Oakland metro area at the end of the third quarter, but nearlyhalf of that space is pre-leased. And with many of the deliverydates more than a year away, Colliers is predicting the market willremain tight in the coming months. Although leasing activity hasslowed, is has been due largely to a lack of available space.

Additionally, the report points to continued strength in theEast Bay industrial market, particularly along the 80/880 corridor.Strong leasing activity during this quarter has kept the vacancyrate for R&D space under 3%. The report predicts that thecoming months will see an increase in development in Oakland andSan Leandro, as developers capitalize on the tight markets.Projects already in the ground include the 469,000-sf 555 CityCenter, the 328,000-sf Watergate IV in Emeryville and the HollisBusiness Center, which will bring 220,00 sf online in Emeryville byJanuary 2001.