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RICHMOND, CA-As the dot-coms lose their leases, go out of business or downsize, property owners are seeing more traditional industries absorb some of the excess space. The latest example is Kaiser Permanente, which signed a 10-year, $5-million lease deal for R&D space in the Regatta Business Center.

Regatta Business Center was built in 1997 by Catellus Development, which maintains ownership. Kaiser’s optical department will occupy 38,000-sf of an 80,000-sf building in the 130,000-sf business park. Existing park tenants include Dicon Fiberoptics and Vicor Inc.

Gabe I. Burke and Gary M. Green, both of Colliers International in Oakland, represented Catellus Development in the lease transaction. Cushman and Wakefield represented Kaiser Permanente.

Leasing activity has been significantly softened due to the dot-com crash and the slowing high-tech industry in the South Bay. However, in its third quarter report Colliers says it expects the regional economy to prove resilient thanks to a limited industrial inventory and centralized location.

Colliers third-quarter market report shows the Oakland Metropolitan Area was initially insulated from the slowdown because of the wide range of businesses located in the region. The R&D/flex vacancy rate in Richmond was 8.4%, according to the report, down from 9.8% in the fourth quarter of 2000.

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