The 37% vacancy rate in Mission West's portfolio is well aboveaverage in the Silicon Valley. Citing preliminary second quarternumbers from CPS/Corfac International, company president Ray Marinosaid the R&D vacancy rate in the Silicon Valley stands at21%.
Through the first six months of 2006, Mission West's occupancyis down 11.7% and rental revenue is down 9.2% compared to 2005,Pham said. Company chairman Carl Berg predicted the company'soccupancy will be down to 61% by the end of 2007.
"We continue to work very diligently on all of our (lease)renewals and most of our tenants continue to need less space thanthey currently have with us," said president Ray Marino. Inaddition, its new and renewal tenants are paying significantly lessthan its other tenants.
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