The most recent deal was with Regus Group. The publicly tradedexecutive suites company leased the 18,000-sf fourth floor of thebuilding for 10 years. Prior to that, Bovis Lend lease took downclose to a full floor. VMWare, which held a billion-dollar IPOearlier this month, expanded within the building; and BareEscentuals Inc., the publicly held cosmetics company, alsoexpanded, taking another floor-and-a-half.

Anton Qui, the leasing agent for the building, in large partattributed the strong leasing to the large portfolio deals thathave transacted recently at top-of-market prices, forcing the newowners to jack up its asking rates on available space. "A lot oftenants are looking for other options and our strategy has been toundercut those rates by 10% to 20% in trade for credit tenants," hetells GlobeSt.com.

The strategy has paid off. Qui says not only is the lease-upahead of schedule but also the lease rates at which deals are beingsigned are higher than the new owners' initial expectation, whichwas for lease rates in the mid-$30s on a full service basis. "Weare well ahead of expectations," he says.