However, the Gap's earnings have been declining over the pasttwo years and the company cannot afford to pay additional rent forspace it may not need. So the clothing manufacturer has put theMission Bay building on the sublease market.
Catellus Development Corp. will not lose in the deal, as theGap's 15-year lease says that it will pay the rent regardless ofwhether it occupies the space or not. Still, this means that thedeveloper has few tenants lined up for the commercial part of theMission Bay project.
Although the lease rate was not disclosed, the average askingprice at the time of the lease signing was $55 per sf. The pricehas lowered significantly since then, which may present a problemin finding a sublessor to take over the large space.
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