One of the brokers in the deal, Phil Mahoney of Cornish &Carey, briefly confirmed the deal for GlobeSt.com but did notdiscuss the negotiated lease rate. The asking lease rate, whichassumed a full-building user, was $3.50 per sf (not includingtaxes, insurance and maintenance), he says, which translates to$9.5 million per annum.

Deals like this by the region's 800-pound gorillas have leasingactivity on high on the Peninsula. One good example is ParksideTowers, a 400,000-sf office development in Foster City that wascompleted in 2002 and three years later remained 85% vacant.Including a 52,000-sf lease signed in May by Acxiom Corp., vacancyin the two five-story buildings is down to 44% and negotiations areunder way for "a significant portion" of the remainder, listingbroker Craig Kalinowski of Cornish & Carey told GlobeSt.com inJune.

"…The mid-Peninsula where this building is located in seeing atremendous amount of activity," he says. "Users to the north arebeing pushed south by Genentech and Amgen and users to the southare being pushed north by Google."