mid-year 2001 collers international · pdf filemid - year 2001 collers international q2 ......

OAKLAND,CAMID - YEAR 2001

COLLERS INTERNATIONALMID-YEAR MARKET REPORTQ2

1999 Harrison St, Suite 1750 • Oakland, CA 94612 • Voice: (510) 986-6770 • Fax: (510) 986-6775 • www.colliersparrish.com

1999 Harrison St., Suite 1750Oakland, CA 94612

510-986-6770fax: 510-986-6775

www.colliersparrish.com

“What a difference a year

makes. The overall vacancy

rate for the Oakland

Metropolitan Area vaulted to

11.6% during the second

quarter 2001 in comparison

to 3.0% in last year’s roaring

real estate market.”

Office Market Overview

What a difference a year makes. The overall vacancy rate for the OaklandMetropolitan Area vaulted to 11.6% during the second quarter 2001 in com-parison to 3.0% in last year’s roaring real estate market. A weaker economyand less demand for space from tenants accounted for much of this increase.Despite these conditions, the Oakland Metro Area is actually in a good posi-tion to withstand this economic slowdown with its broader, more traditionaltenant base. Emeryville, however, is the exception and has been more affect-ed by the recent downturn in the technology sector, comparable to the otherthe Bay Area markets. Emeryville’s vacancy rate leapt up to 20.4% as tech-nology companies went out of business after venture capitalists cut off newfunding money coupled with the completion of several new projects. Webelieve we have seen the worst of it and expect a return to shrinking vacan-cies through the second half of the year.

Rents in the Oakland Metro Area underwent a correction as the overallvacancy rate continued to climb. Rents dropped from a high of $4.25 psf/moFull Service at year-end 2000 to the current rate of $3.29 psf/mo Full Service.Despite the recent correction, rents are still higher than they were two yearsago when they stood at $2.28 psf/mo Full Service. We do not expect rents tofall much further and should be steady for the next several years.

Despite all the gloom, we expect vacancy and rents to stabilize in the entireOakland Metro Area in the second half of the year. Developers have eitherdelayed or scaled down projects so the market will not be impacted by a massof new product. There shouldalso be a reduction in the num-ber of failed technology ten-ants because the most vulnera-ble companies have alreadyfolded. As a result, the Oakland MetroArea will be able to withstandcurrent economic conditionsand continue to attract tenantswith its lower rents, accessibili-ty to public transit systems, andefficient infrastructure.

MID-YEAR 2001

C O L L I E R S I N T E R N A T I O N A L

1

1

Oakland Metro Area Class A MarketOverall Vacancy vs. Full Service Asking Rental Rates

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

1Q98 2Q98 3Q98 4Q98 1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01$1.75

$2.25

$2.75

$3.25

$3.75

$4.25

$4.75

Overall Vacancy Asking Full Service Rent

Oakland Metro Area Class A Market

The shakeup in the dot-com industry which has affected most of the Bay Area has also taken its toll on the South Richmond R&D/office market,which consists of of all R&D/Flex office space south of I-580. The total base of this market is approximately 1.9 million square feet, of which nearly331,398 square feet is being offered for lease or sublease, making the current vacancy rate 17%. This is close to double the vacancy rate of 9.3% atthe end of the fourth quarter of 2000. Adding to this increase are several projects which were under construction during the fourth quarter of 2000and which are now complete. Market rates are estimated to be from $1.00 - $1.60 triple net, depending on product quality and location. Richmondsoftware maker QRS Corp. scaled back its expansion plans at its headquarters in Richmond, and they are placing as much as 100,000 square feet oftheir expansion space on the sublease market. Despite the overall doom and gloom, there are several deals that did get completed in the second quarter. Andros, the Contra Costa CountyDepartment of Health Services, and HealthNet leased a combined 180,000 square feet in three separate deals in the South Richmond market. TheCity of Richmond has agreed to sublease about 32,000 square feet of space in South Richmond from Zip Realty.com and Gamers.com. Both Internet-based firms, which occupy the building on Marina Way South, found themselves with excess space on their hands, and for a number of months hadbeen seeking a subtenant. Governmental leases continued to play a large part in this submarket; Contra Costa County entered into a 10-year $13 mil-lion dollar lease for a 60,000 square foot office complex in a deal that is one of West Contra Costa’s biggest lease transactions of this year. The 168,000 square foot Marina Bay Center was purchased by an entity representing a Marin County pension fund. The project consists of 105,000square feet of warehouse space, and 63,000 square feet of R&D flex space. The sale price was $14,050,000, which equated to $83.63 per square foot.For the next two to three quarters we see this market to be flat, with limited leasing activity. With a recent major Emeryville deal completed at $1.75triple net, the South Richmond market will continue to face downward rental pressure until supplies diminish.

COLLIERS INTERNATIONALMID-YEAR MARKET REPORT

OAKLAND Metro Area,CAMID-YEAR 2001

C O L L I E R S I N T E R N A T I O N A L 2

Richmond Office Market

Downtown Oakland-Class A

Despite the "internet" related correction in the employment sector and adramatic slowdown in tenant demand throughout the entire Bay Area,Oakland has enjoyed relative stability in the market for Class A officespace, clearly a trend which is in sharp contrast to the rest of the Bay Areamarkets. Overall vacancy for Class A buildings in Downtown Oaklandcurrently stands at 5.4% vs 3.7% at year-end 2000. This equates to neg-ative net absorbtion of 108,009 square feet. We attribute this to severalfactors.

• Oakland did not attract the "dot-com" tenant. Though Oakland clearly benefited from the vibrant economic conditions attributed to the "dot-com" runup, the benefits were indirect. Much of the recentabsorbtion resulted from tenants escaping the escalating market in SanFrancisco, and many of those tenants are profiled as more traditional,professional service companies.

• 555 City Center is not in vacancy statistics. Our vacancy statistics donot include buildings under construction; therefore 555 City Center isnot reflected in the numbers. If we include 555 City Center, the overall vacancy rate jumps to 11.1% (still a reasonably healthy vacancy rate). We believe that as Shorenstein nears shell completion (in the second quarter of 2002), much of the space will be committed. According to John Dolby, Leasing Manager for Shorenstein, leasing activity for the building has increased significantly since the conclusion of the first quarter.

• The market is not overbuilt. Despite the flurry of development applications to the City of Oakland last year, many of the proposed developments were either for residential use or were tabled in light of the market correction. Ellis Partners is fully entitled for its new project at20th and Broadway but is waiting for a pre-lease commitment before commencing construction. The same is true for Prentiss Properties’ proposed 700,000 square foot project at the corner of Grand and Harrison, and for Joe Hernon’s proposed development at 17th and Broadway.

As a result of the relative stability in theDowntown Oakland market, rents havenot dropped as dramatically as they havein other markets. Current rents rangebetween $3.25 -$3.75 (full service) persquare foot per month versus last year’speak of $4.25 - $5.00. It should be noted,however, that this rent range is consider-ably higher than rents of two years agowhen the average was approximately $2.50

(full service) per square foot per month, a 40% increase during the 24month period. We believe rents have stabilized and will remain at thislevel for several years. We attribute this prediction to the following:

• Limited amount of new speculative construction• We do not anticipate any more "new economy" tenant sublease space• Continued recognition of the intrinsic benefits of the Oakland infra

structure (transportation, parking, freeways, communication, access tolabor, favorable political environment)

• Rents are still less than San Francisco and the Peninsula markets

Oakland Class B/C

The Oakland B/C office market continued to struggle as the second quar-ter came to a close. Rental rates decreased as demand diminished leavinglandlords only one option, lower rental rates. The asking rent for ClassB/C space decreased to $2.50 Full Service Gross, a drop of approximately$0.50 since fourth quarter 2000.

Tenants who had been focusing on Oakland because they had beenpriced out of the City realized that prices in San Francisco had softenedtremendously, thus pulling the plug on Oakland. Vacancy rose overall inthe Class B/C market to a healthy 12 % giving those tenants in the mar-ket more choices than they had six months prior. Although the B/C mar-ket was not inundated by the dot.com craze, expect landlords to contin-ue enticing those tenants in the marketplace with lower rent.

The major lease transaction that occurred in the second quarter occurredat 2201 Broadway between 2201 Broadway Investments, LLC, andCalifornia State- San Francisco, for 29,000 square feet. The seven (7)year deal was executed in June and shall commence in September.

OAKLAND Metro Area,CACOLLIERS INTERNATIONAL

MID-YEAR MARKET REPORT

MID-YEAR 2001

3 C O L L I E R S I N T E R N A T I O N A L

Oakland Office Market

Oakland Downtown Class A SpaceVacancy vs. Asking Rental Rates

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

1Q98 2Q98 3Q98 4Q98 1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01$1.50

$1.75

$2.00

$2.25

$2.50

$2.75

$3.00

$3.25

$3.50

$3.75

$4.00

$4.25

$4.50

Overall Vacancy Asking Rent

Class A

Oakland Class B/C SpaceVacancy vs. Asking Rental Rates

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

1Q98 2Q98 3Q98 4Q98 1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01$1.00

$1.25

$1.50

$1.75

$2.00

$2.25

$2.50

$2.75

$3.00

$3.25

$3.50


Class B/C

As part of the Oakland International Airport expansion program, 98th Avenue is currently being widened into a six-lane parkway between the air-port, Bay Farm Island (Alameda) and Interstate 880.

In July, the Port of Oakland took another step towards transforming the areas along Hegenberger Road by selecting a developer for the 22-acre OaklandAirport Development. The proposed SIMEON Commercial Properties project, located near the entrance to the airport at Edgewater Drive andHegenberger Road, will include 1.3 million square feet of retail and Class A office space and a full- service 300-room hotel. To further enhance thisdevelopment, the Port and City are jointly funding a $4 million Gateway project that will upgrade streetscape, landscaping, signage, and lighting alongHegenberger Road.

Long gone are the low rents and high vacancy that was once true in this submarket. The access to transportation proximity to the airport and therejuvenation of the Hegenberger corridor have contributed to the climbing rents and single digit vacancy factors in the area.

Hegenberger Corridor developments that are pending or in progress:

• Gateway site (Hegenberger at Hwy 880), SIMEON Commercial Properties, 1.3 million square feet, plus hotel and retail. Environmental reviews are under way.

• Edgewater Distribution Center (7200 Edgewater Drive), 406,700 square feet industrial R&D, sold.• Rainin Instruments (7305 Edgewater), 180,000 square feet of offices, manufacturing, R&D, ground broken.• Key Sources International (7711 Oakport), manufacturing, office, sale pending.• Courtyard by Marriott (350 Hegenberger), a 154-room hotel, near completion.• Zhone Technologies (7195 Oakport at Hwy 880), 300,000 square feet of office and R&D, first phase completed, second phase under construction.• Best Western Hotel (170 Hegenberger Loop Road at Hwy 880), 76-rooms, under construction.• US Postal Service Warehouse (85th Avenue), 150,000 square feet warehouse, completed.• Just Desserts (550 85th Avenue), 64,525 square feet bakery and warehouse, ground broken. • Wingate Hotel (Hegenberger at Pardee), 150 rooms, sale pending.• WP Investments (Hegenberger at Pardee), 10.4 acres/240,000 square feet for R&D, industrial, sale pending.

These developments, along with the emergence of the Oakland Airport submarket as an attractive alternative to the downtown Central BusinessDistrict, will enhance the long-term value from both leasing and investment perspectives.




Oakland Airport Office Market

100 Hegenberger Road • Oakland, CA

Downtown Berkeley

The market in Downtown Berkeley is at a healthy 9.3% vacancy. There were several leases completed in the second quarter. Merrill Lynch leased10,000 square feet at Golden Bear Center, located at 1999 University Avenue and owned by EOP. There is still 25,000 square feet of sublease spacestill left on that floor. Powerbar/Nestle contracted at 2150 Shattuck, allowing MPR to continue to grow further in the building. There is 6,000 squarefeet of sublease space in this building owned by SRM Associates. Due to the weakening demand generally in the area. rents have begun to drop, withmore direct and sublease space sublease coming available, although Berkeley has not yet been impacted to the same degree as the Emeryville andOakland markets.

Seagate Properties purchased the 44,000 square feet of office buildings at 2030/2040 Addison Street for approximately $10,300,000, setting a markethigh for purchase price per square foot for office product. Seagate also purchased several single story storefronts along Center Street. Several buildingsare now for sale in Downtown Berkeley, spurred by this activity.

Housing continues to be built both downtown, and in North Berkeley where land prices on Solano Avenue have reached $115 psf for a residentialsite. Retail is strong along the Shattuck corridor and several new restaurants have opened to complement the expansion of the Berkeley RepertoryTheater.

West Berkeley

The market in West Berkeley has seen a drop in rents of 25% in the small office transactions.There is a substantial amount of sublease space now available in this submarket. iKnowMedwill sublease the 20,000 square foot space it leased at 1604 4th Street, a relatively new proj-ect with 25,000 square feet of direct shell space available. Nearby, on Fourth Street, DennyAbrams has 7,500 square feet of new space, and there is an additional 20,000 square feet ofsublease space available. There are also two rehab projects that will be available late sum-mer: 28,000 square feet at 2023 Eighth street and 20,000 square feet at 1440 Fourth street.

Land prices for residential projects remain high with a recent listing of aproperty at Tenth and Grayson for almost $70 per land foot. The site atSixth and Gilman is in escrow with an asking price of $40 psf for entitledindustrial land. Maybe no price is too high for something entitled inBerkeley.

Albany

TMG Partners is actively marketing the 12-acre officecampus site off the frontage road in Albany. The siteis designed with 30% open area surrounding threebuildings totaling 225,000 square feet. Adjacent tothe site there is 27,000 square feet of new office spaceavailable for lease. CalTrans has extensive plans forimproving the frontage road access off the BuchananStreet exit northbound on I-80.



MID-YEAR 2001


Berkeley Office Market

Downtown Berkeley Office SpaceVacancy vs. Asking Rental Rates

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

1Q98 2Q98 3Q98 4Q98 1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01$1.75

$2.00

$2.25

$2.50

$2.75

$3.00

$3.25

Vacancy Asking Rent

Downtown Berkeley

West Berkeley Office/Flex SpaceVacancy vs. Asking Rental Rates

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

1Q98 2Q98 3Q98 4Q98 1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01$1.55

$1.75

$1.95

$2.15

$2.35

$2.55

$2.75

Vacancy Asking Rent

West Berkeley




The trend in Emeryville of rising vacancy rates and falling rental rates which began in the first quarter of 2001 continued through the second quar-ter. Tenant demand remained sluggish, and increasing blocks of space were returned to the market far ahead of the lease expiration dates, due in partto the collapse of some high profile dot-com tenants, and in part to the general slowdown in the economy. The Class A vacancy rate rose from 24.8%to 26.0%, although part of this was attributable to Watergate Tower IV being completed and Siebel Systems (which leased the entire building of433,433 square feet) beginning to move in and vacating its space in the other Watergate Tower. The vacancy rate would have been even higher hadSybase, a major Emeryville tenant, made its planned move to Dublin, but it elected to remain in Emeryville for another year. While there was only aslight increase in the Class B/Flex office space to 12.6%, this segment of the market felt a disproportionate impact on rental rates as smaller landlordsbegan to become very anxious about persistent vacanties.Several new buildings which were constructed during the time the demand for Emeryville space was intense remain either completely vacant or sparse-ly occupied. The second building of the Hollis Business Center, a very attractive 92,050 square foot new structure, has been finished in shell condi-tion, but is still awaiting a tenant, and the first building is only half-full.

Company failures and reorganizations contributed to the decline. Despite receiving more than $22 million in a third round of funding in November,2000, Emeryville-based Utility.com pulled the plug on all of its operations and filed for bankruptcy, although this was quickly snapped up by biotechgiant Chiron whose main facility is across the street. Yack Media Services closed its office in the Watergate Towers complex and put 6,000 square feeton the market. The bankruptcy of Northpoint Communications was going to return back to Wareham Properties nearly 250,000 square feet. However,when AT&T bought the assets of Northpoint, it announced that it would take all of the Northpoint space in Emery Station South and HeritageSquare, but not the 90,000 square feet in the nearly-completed Emery Station North.Significant transactions of companies acquiring space included the Fair, Isaacs lease of 15,410 square feet at Emery Station North; the Whole Foodslease of 15,000 square feeet in the same project. Bank of the West leased 8,054 square feet in Watergate Towers; and Oto, Bailey, Fukumoto, Burdick& Mischima, Inc. subleased 9,170 square feet from Acacia, also in Watergate. We anticipate that the vacancy rate has stabilized and could see a slightreversal of direction in the third and fourth quarters.

Emeryville Office Market

Emeryville Office & Flex SpaceVacancy vs. Asking Rental Rates

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

1Q98 2Q98 3Q98 4Q98 1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01$2.00

$2.25

$2.50

$2.75

$3.00

$3.25

$3.50

$3.75

$4.00

$4.25

$4.50

Vacancy Asking Rent

All Office

Emeryville Class B Office & Flex SpaceVacancy vs. Asking Rental Rates

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

1Q98 2Q98 3Q98 4Q98 1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01$1.50

$1.75

$2.00

$2.25

$2.50

$2.75

$3.00

$3.25

$3.50

$3.75

$4.00

$4.25

Vacancy Asking Rent

Class B/FlexEmeryville Class A Office SpaceVacancy vs. Asking Rental Rates

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

1Q98 2Q98 3Q98 4Q98 1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01$2.00

$2.25

$2.50

$2.75

$3.00

$3.25

$3.50

$3.75

$4.00

$4.25

$4.50


Class A

The pendulum swung in the Alameda market during the first half of 2001. The continued prosperity of 2000 permeated the first quarter, while theeffects of the national economic slowdown plagued the second quarter. Since December 2000, the overall vacancy jumped from 4 % to 11 %. Bothsubmarkets now have double-digit vacancy as vacancy in Marina Village leapt from 2 % to 10 % and Harbor Bay moved from 7 % to 13 %.

Corporate retrenchment or the closing of businesses caused most of the damage in Marina Village. Several significant spaces came to the market,including Pilot Network Services’ 47,000 square feet; Hasbro’s 38,000 square feet; and TCSI’s 35,000 square feet. These spaces alone represented near-ly 8 % of the Marina Village inventory. At Harbor Bay, Lennar’s new, two building project was 75% vacant with approximately 95,000 of the 125,000square feet still available. This large block of space was 62 % of Harbor Bay’s overall vacancy.

Positive news came from biotech sector transactions and investment activity. At Marina Village, two large renewals occurred including RocheMolecular, 65,000 square feet at $2.00 net and Montclair Group, 40,000 square feet at $2.00 net. Earlier in the year, at Harbor Bay, Applera/Celera,a new tenant, leased 50,000 square feet in two buildings while Avigen expanded into 34,000 square feet. Most non-lab tenants leased or renewed theirspaces at Harbor Bay in the $2.15 to $ 2.35 Full Service range while leases at Marina Village leases went for $ 2.25 to $2.50 Full Service.

Limar Realty Group expanded its Alameda holdings to 469,0000 square feet. Limar took a position in Harbor Bay by purchasing five of Legacy’s build-ings ( ±316,000 square feet) for $36.4 million ($115.00 per square foot) before they ever hit the market. Limar now spans the island because it alreadyowns four buildings (153,000 square feet) in Marina Village.

Pivotal’s 121,000 square foot building at 1320 Harbor Bay Parkway is rumored to be under agree-ment. The two-story, multi tenant property was for sale at $19 million,$157.00 per foot. Also at Harbor Bay the Alameda Alliance for Health, anowner-user, purchased the 50,000 square foot building at 1240 South LoopRoad building for $130.00 per foot. The 31,700 square foot single tenantfacility at 1501 Harbor Bay Parkway was in escrow with an asking price of$8.39 million, $264.00 per foot.

The sluggish economy will impact future office construction. Plans are pro-ceeding for the redevelopment of Alameda Point, the former Alameda NavalAir Station. Catellus Development Corporation may begin constructionnext year on the former Fleet Industrial Supply Center, the smaller of the twosites. In the near future, the Alameda Reuse and Redevelopment Authoritywill select a Master Developer for the largest portion (nearly 800 acres) of thebase. The three finalists include Alameda Point Community Partners,Catellus Development Corporation, and Harbor Bay Lennar, LLC. However,any new building will probably be delayed or scaled down as developers get asense of how the current economic malaise effects demand. At Harbor Bay, the longawaited Cross Airport Roadway will be under construction in the fourth quarter. Thenew road will provide substantially improved access from I-880 via Oakland’s 98thAvenue.

The second half of 2001 is anticipated to be sluggish. Demand has slowed consider-ably, especially in the last two months. As companies continue to adjust to a slowereconomy supply will increase as surplus space is brought to market.



MID-YEAR 2001


Alameda Office Market

Harbor Bay Office/Flex SpaceVacancy vs. Asking Rental Rates

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

2Q98 3Q98 4Q98 1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01$1.50

$1.60

$1.70

$1.80

$1.90

$2.00

$2.10

$2.20

$2.30

$2.40

Vacancy Asking Rent

Harbor Bay

Marina Village Office/Flex SpaceVacancy vs. Asking Rental Rates

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

2Q98 3Q98 4Q98 1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01$1.70

$1.90

$2.10

$2.30

$2.50

$2.70

$2.90

$3.10

$3.30

$3.50

$3.70

Vacancy Asking Rent

Marina Village

The East Bay industrial real estate game is slowly starting to play itself out.Many real estate professionals came sprinting into 2001 hoping that thefive-year market expansion would continue for another year. Now, at mid-year 2001, the real estate community is trying to anticipate the affects ofthis down turn on the market, and trying to determine how long it willlast.

The industrial markets throughout the East Bay have definitely experi-enced a considerable slowdown. Transaction volume for the first half of2001 pales in comparison to last year’s record level activity. But if youcompare what impact this downturn has had on Bay Area vacancy ratesand average rental rates, the East Bay has held up better than many othermarkets in the San Francisco Bay Area.

The lack of developable land, a diverse tenant base, and under valuedproperties are all contributing factors to the stability of the OaklandMetropolitan Industrial Market. Bay Area markets heavily concentratedin technology users such as the "Silicon Valley", will take longer to recov-er than markets with a more diverse user base, such as the East Bay. TheEast Bay still offers the best economics in the San Francisco Bay Area andthus will continue to attract a variety ofbusinesses into the area.

Although the following report indicatesthat the market has slowed in the firsthalf of 2001, we expect that the marketwill perform better in the second halfwith both moderate declines in vacancyrates and rental rates remaining stable orwith slight increases.




Industrial Market Overview

I-80/880 Corridor Warehouse/Distribution MarketVacancy vs. Asking NNN Rental Rates

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

1Q98 2Q98 3Q98 4Q98 1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01$0.30

$0.35

$0.40

$0.45

$0.50

$0.55

Vacancy Asking NNN Rent

I-80/880 Corridor Light Industrial MarketVacancy vs. Asking NNN Rental Rates

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

1Q98 2Q98 3Q98 4Q98 1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01$0.30

$0.35

$0.40

$0.45

$0.50

$0.55

$0.60

$0.65

$0.70

$0.75

$0.80


I-80/880 Corridor Light Industrial

I-80/880 Corridor Overall Industrial MarketVacancy vs. Asking NNN Rental Rates

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

1Q98 2Q98 3Q98 4Q98 1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01$0.25

$0.30

$0.35

$0.40

$0.45

$0.50

$0.55

$0.60

$0.65

$0.70

$0.75


I-80/880 Corridor Overall Industrial

I-80/880 Corridor R&D/Flex MarketVacancy vs. Asking NNN Rental Rates

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

1Q98 2Q98 3Q98 4Q98 1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01$0.50

$0.60

$0.70

$0.80

$0.90

$1.00

$1.10

$1.20

$1.30

$1.40

$1.50

$1.60

$1.70


I-80/880 Corridor R&D/Flex

I-80/880 Corridor Warehouse/Dist.

Metropolitan Furniture Corporation completed a10-year lease transaction at 7200 Edgewater Drive with

AMB Propery Corporation for 214,200 square feetlocated at Edgewater Industrial Center.



MID-YEAR 2001


The Richmond market activity was brisk in the first half of 2001,while neighboring submarkets and the economy cooled off. Theoverall vacancy rate rose from 5.7% last year, to 7.0% at mid year2001. Richmond continues to draw tenants and investors with itscomparably cheaper rents and land.

The south shoreline area saw excellent activity, with its abundanceof new R&D/flex product recently coming to market. Several sig-nificant transactions kept the vacancy rate at 9.2% even with sev-eral large sublease space hitting the market. Andros Technologiesfrom Emeryville sign a 10-year lease for 64,900 square feet atHarbour Business Center, Building 2: The Landlord, Bay WestGroup started construction on the new building, targeting a move-in date of October, 2001. Contra Costa County signed a 10-yearlease with STG Group for 60,000 square feet, on a recently reno-vated 93,000 square foot building on Hall Avenue. The rent startsat $1.50 psf NNN with a $20 T.I. allowance with the tenant con-tributing an additional $50 psf. Rumor is that Wareham Propertiesis close to signing a deal on 65,000 square foot, on the old Pixar space with the Department ofJustice. Lastly, Marin County Teachers Fund purchased Marina Bay Business Center’s 163,000square feet mixed use multi-tenant business park from Aetna, for $14,025,000 representing a9.25% cap rate. Noteworthy space coming back on the market is QRS’s sublease of their93,000 square foot two-story office space, and Gammers.com and Zip Realty. Also, the FordPlant which was in contract with ForestCity Development, is now available.The City of Richmond Redevelopmentis now exploring all options for thismajor rehab waterfront property.

Rent rates in the warehouse sector havestabilized with little inventory available.Pinole Point Business Park recentlycompleted a speculative 131,000 squarefoot light industrial building, Building3. This project is divisible to 20,000square feet with asking rates at $.65 psfper month. Many property owners withnew planned developments, are cau-tiously waiting to see what direction theBay Area economy will take prior tocommencing new speculative construction.

Koll Development sold a new 49,805 square foot freestanding building toA.C. Paper for $3,600,000. Veriflo/Parker Hannifin leased 71,150 squarefeet for 10 years with an option to purchase, from Richmond PartnershipLLC. In neighboring Hercules, Bio-Rad Laboratories purchased a 54,617square foot 2 building complex, which they currently occupy from East Group, Inc. The saleprice was $5,400,000.

Richmond is in the process of creating a new identity for itself, as many new viable compa-nies are relocating there, and new development continues. We expect vacancy rates andrents to remain stable for the balance of 2001.

Richmond Warehouse/Distribution SpaceVacancy vs. Asking Rental Rates

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

1Q98 2Q98 3Q98 4Q98 1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01$0.25

$0.30

$0.35

$0.40

$0.45

$0.50

$0.55

$0.60

Vacancy Asking Rent

Richmond Industrial Market

AC Paper Company closed escrow on Koll Development Company’s49,805 square foot building located at Koll North Shore Business Park for

$3,600,000 or $72.28 per square foot.

Marin County Teachers Fund closed escrow on Aetna’s 163,000square foot warehouse/R&D/flex building at Marina Bay Business Center

for $14,025,000 or $86.04 per square foot.

Contra Costa County completed a 10-year lease transaction with STGRealty at 1275 Hall Avenue for 60,000 square feet of office space.

Andros Technologies completed a 10-year lease transaction on a64,900 square foot R&D/Office building located at Bay West’s Harbour

Business Center.

SIGNIFICANT TRANSACTIONS

Richmond Industrial SpaceVacancy vs. Asking Rental Rates

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

1Q98 2Q98 3Q98 4Q98 1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01$0.25

$0.30

$0.35

$0.40

$0.45

$0.50

$0.55

$0.60

$0.65

$0.70

$0.75

Vacancy Asking Rent

Light Industrial

Richmond R&D/Flex SpaceVacancy vs. Asking Rental Rates

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

1Q98 2Q98 3Q98 4Q98 1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01$1.00

$1.10

$1.20

$1.30

$1.40

$1.50

$1.60

$1.70

Vacancy Asking Rent

R&D/Flex

Warehouse




The Oakland industrial market has remained stable through the first halfof 2001. Vacancy rates have slightly increased from 4.3% in Q1 2001 to6.3% at the end of Q2 2001.

One strong segment of the market is the small industrial space under15,000 square feet with average rental rates ranging from $.70 to $.90 psf,with the time on the market averaging two to four months. Recenttransactions include: Young’s Market leased 10,000 square feet fromSpieker Properties in the Port of Oakland Business Center for 4 years atan effective rate of $.70psf NNN. In West Oakland, Textile Times leased4,560 square feet for 5 years at an effective rate of $.89psf NNN.

The other strong segment is the owner/user market. The inventory islimited to a handful of buildings for sale, thus creating strong demandfrom users in Oakland and neighboring communities that are takingadvantage of Oakland’s attractive economics. Some of the current build-ings on the market that are in escrow include: The Pioneer Packagingbuilding consisting of 65,000 square feet and Bay Area Powder Coatingsproperty, a 50,000 square foot manufacturing building on a 3-acreparcel. Buildings under 12,000 square feet are selling between$75.00 and $100.00 per square foot and buildings between 20,000to 60,000 square feet are selling between $55.00 and $90.00 persquare foot, depending on location and type of construction.Average time on the market is ranging from three to six months.

Recent transactions include: Four Seasons Landscape Architectspurchased 2928 Poplar Street in West Oakland, a 6,500 square footwarehouse situated on an 11,500 square foot parcel for $560,000.00,and Ford Graphics from San Francisco purchased 2210 MagnoliaStreet, a 22,000 square foot warehouse for $2,059,000.00.

The sobering news is that the large manufacturing and warehousemarket has been anemic with very little activity accept for a handfulof large transactions. Although the vacancy rate has remainedsteady, there is plenty of evidence that the market has cooled off.

Many spaces over 40,000 square feet for lease have been on the marketsince the beginning of the year with very little activity from prospectivetenants. We are beginning to see asking rents decrease between 10% to20% in an effort to attract tenants. The only good news to this segmentis that there has not been much new inventory coming on the market,thus keeping the vacancy rate low. Significant lease transactions include:Metropolitan Furniture Corporation’s lease of 214,000 square feet inAMB’s Edgewater Industrial Center at 7200 Edgewater Drive and SitcomFurniture’s lease of 90,000 square feet at the former Clorox manufacturingplant off High Street for 5 years.

The Oakland submarket should continue to handle the slow down andcontinue to offer companies very attractive alternatives.

Oakland Industrial Market

Gal Today, Inc. closed escrow on the former Granny Goose facility, a37,041 square foot building for $1,920,000 or $51.82 per square foot.

Sitcom Furniture completed a 60-month lease at 850-42nd Avenue, a93,252 square foot facility formerly occupied by Clorox.

Metropolitan Furniture Corporation completed a 10-year leasetransaction at 7200 Edgewater Drive with AMB Propery Corporation for

214,200 square feet located at Edgewater Industrial Center.

The Annex completed a 26-month lease transaction with The Port ofOakland for a 237,702 square foot warehouse building located at the former

Oakland Army Base.


Oakland Industrial SpaceVacancy vs. Asking Rental Rates

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

1Q98 2Q98 3Q98 4Q98 1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01$0.25

$0.30

$0.35

$0.40

$0.45

$0.50

$0.55

$0.60

$0.65

$0.70

Vacancy Asking Rent

Light Industrial

Oakland Warehouse/Distribution SpaceVacancy vs. Asking Rental Rates

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

1Q98 2Q98 3Q98 4Q98 1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01$0.30

$0.32

$0.34

$0.36

$0.38

$0.40

$0.42

$0.44

$0.46

$0.48

$0.50

Vacancy Asking Rent

Warehouse

Caspin Trading Company signed a 5-year lease at 1991 Dennison Streetwith the Hasslett Family for 35,582 square feet of warehouse space.

For the second consecutive quarter, San Leandro’s vacancy rate rankedas the lowest among the Bay Area’s major industrial markets. Themid-year vacancy rate increased modestly from Q1 2001 endingthe quarter at 3.9%. Despite the increasingly turbulent Bay Areareal estate environment, San Leandro remained extremely healthy.

The most significant investment sale in Q2 2001, was BalcoProperties acquisition of ASP Catalina’s Catalina Corporate Park.The 74,320 square foot, four (4) building multi-tenant R&D/lightindustrial project sold for $5.9 million ($79.39 psf) in June. This repre-sented a 8.8% cap rate on existing income. In order to facilitate a 1031exchange requirement, Berto Development purchased 950-958 AladdinAvenue in May from Seecon Partners. This 55,130 square foot free-standing multi-tenant warehouse/distribution facility sold for $3.9 million($70.74 psf).

Despite overall leasing activity being relatively anemic, due to a lack ofavailable inventory, several significant lease transactions were completedduring Q2 2001. Apria Healthcare, Inc. signed a five (5) year lease withWilliam Wilson & Associates for 19,540 square feet at 2476 Verna Court.Unisource Solutions completed a lease with ProLogis for 19,800 squarefeet at their San Leandro Distribution Center and Conway Truckingsigned a five (5) year lease for 16,487 square feet withLegacy Partners at the Alvarado Business Center. Ingeneral, leasing activity for units under 20,000 squarefeet remained active.

The Marina Corporate Center recently completed at2401 Merced Street represents the first new industrialdevelopment in San Leandro in nearly eighteen (18)months. This 43,180 square foot R&D/light industrialfacility offers excellent access to Interstate 880 via theMarina Boulevard exit. A flexible building design, withseveral building fronts, allows the ownership to accom-modate office, tech, and light manufacturing companiesas small as 5,000 square feet. Additionally, InnsfreeDevelopment has commenced construction on the firstof three (3) suburban Class A office buildings adjacentto the Davis Street BART station. TriNet has committed to pre-leaseapproximately 50% (48,693 square feet) of Building A currently underconstruction at the Creekside Plaza Business Park. On the retail front, theCity of San Leandro has approved the extension of the Marina BoulevardAuto Row East to San Leandro Boulevard. Ford and G.M. are currentlynearing completion of new auto centers. Volvo and Kia Motors areexpected to break ground on their new facilities by year-end.

Despite increasing vacancy rates throughout the surrounding Bay Areaindustrial markets, tight market conditions continue to dominate the SanLeandro marketplace. We expect vacancy rates to remain relatively stablewith current rent levels extending through 2001.



MID-YEAR 2001


San Leandro Industrial Market

Berto Development closed escrow on a 55,130 square foot industrialbuilding from Seecon Partners for $3,900,000 or $70.74 per square foot.

Balco Properties closed escrow on a 74,320 square foot, 4-building,multi-tenant light industrial project for $5,900,000 or $79.39 per square foot.


San Leandro Industrial SpaceVacancy vs. Asking Rental Rates

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

1Q98 2Q98 3Q98 4Q98 1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01$0.30

$0.35

$0.40

$0.45

$0.50

$0.55

$0.60

$0.65

$0.70

$0.75

$0.80

Vacancy Asking Rent

Light Industrial

San Leandro Warehouse/Distribution SpaceVacancy vs. Asking Rental Rates

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

1Q98 2Q98 3Q98 4Q98 1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01$0.30

$0.35

$0.40

$0.45

$0.50

$0.55

$0.60

Vacancy Asking Rent

Warehouse

San Leandro R&D/Flex SpaceVacancy vs. Asking Rental Rates

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

1Q98 2Q98 3Q98 4Q98 1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01$0.60

$0.70

$0.80

$0.90

$1.00

$1.10

$1.20

$1.30

$1.40

Vacancy Asking Rent

R&D/Flex







Hayward Industrial Market

Although the hot leasing market of 2000 has cooled down this year, theHayward industrial market is weathering the economic slowdown verywell during the first half of 2001. We are beginning to see modest reduc-tions in rent for all product type as well as slight gains in vacancy rates.The average asking rate for all product type actually increased to$0.75/sf NNN from $0.72/sf NNN last quarter. The overall vacancyrate is 4.1% compared to 3.1% in the past two quarters. Hardest hitwas the R&D product as the "High Tech" sector of the economy cameto a screeching halt. This year the R&D vacancy rate rose to 7.5% upfrom 3.6% at the end of Q1 2001. This was the direct result of a grow-ing sublease inventory caused by the sudden downturn in the tech-nology markets.

The good news is that last year’s economic expansion has left theHayward market in it’s best condition ever. Every segment of the mar-ket; R&D, Light Industrial, and Warehouse was strengthened by theinflux of new tenants seeking more affordable alternatives. With nooverbuilding, record low vacancy rates, and record high property values,the Hayward Industrial Market is well positioned to soften the blow of anyeconomic downturn.

In the second quarter, small light industrial building sales reached a highof $130/sf. In fact, a 55,000 sf warehouse building (1963 Sabre Street) soldfor $95/sf to a user from the San Francisco Peninsula. The inventory ofproperty for sale remains very limited while buyer demand still appears tobe strong. Leasing activity in 2001 has definitely slowed down with farfewer transactions being signed this year as compared to last year. The twolargest lease transactions completed in Q22001 were renewals; Invesco’s HaywardGateway Center renewed DitanDistribution for 152,310 sf for five years,and Spieker Properties renewed UnitedGrocers, 194,350 sf for one year. In thelight industrial segment, Spieker Propertiesleased an additional 22,552 sf to Terrawavefor five years and Spieker also renewedLucent Technologies in 33,406 sf for fiveyears. The largest and most significantlease transaction this year was inked in thefirst quarter; the former Ball Corporation’s214,172 sf manufacturing facility at 2425Whipple Rd. leased to Morgan AdvancedCeramics for a fifteen year term.

The Hayward Industrial Market will continue to be an attractive place forusers and investors looking for great values in the San Francisco Bay Area.We are expecting the market to remain slow for the balance of the year asthe economy remains soft, however, one must remember that theHayward market still offers some of the best economics anywhere in theSan Francisco Bay Area.

Hayward Industrial SpaceVacancy vs. Asking Rental Rates

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

1Q98 2Q98 3Q98 4Q98 1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

$0.80

$0.90

Vacancy Asking Rent

Light Industrial

Hayward Warehouse/Distribution SpaceVacancy vs. Asking Rental Rates

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

1Q98 2Q98 3Q98 4Q98 1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01$0.34

$0.36

$0.38

$0.40

$0.42

$0.44

$0.46

$0.48

$0.50

$0.52

$0.54

Vacancy Asking Rent

Warehouse

Hayward R&D/Flex SpaceVacancy vs. Asking Rental Rates

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

1Q98 2Q98 3Q98 4Q98 1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

$1.80

Vacancy Asking Rent

R&D/Flex

Snyder-Newell closed escrow on a 55,236 square footwarehouse/office complex for $5,300,000 or $95.95 per square foot.

Impax Laboratories closed escrow on YHS Trading’s 35,125 square footindustrial/manufacturing building for $3,800,000 or $108.19 per square foot.

Ditan Distribution completed a 60-month lease renewal at 3335 ArdenRoad for 152,310 square feet at Invesco’s Hayward Gateway Center.

Lucent Technologies completed a 60-month lease renewal at 1236 SanLuis Obispo Avenue for 33,406 square feet at Spieker Properties’

Huntwood Business Center.




MID-YEAR 2001


The Union City submarket has remained relatively stable throughout the firsthalf of 2001. Although, vacancies have decreased modestly to their currentlevel of 6.2% from their record low of Q4 2000 of 7.3%, rental rateshave remained virtually unchanged. The availability of warehouse dis-tribution, light industrial and R&D/Office space in this strategicallylocated submarket has allowed Union City to perform well in this tur-bulent Bay Area real estate market.

The most significant investment transaction in Q2 2001 was RREEFFunds’ acquisition of Principal Capital Management’s AlvaradoBusiness Park. The 1,235,740 square foot, ten (10) building multi-ten-ant industrial park sold for $69.3 million ($56.08 psf) in April. Thisrepresented a 7.5% cap rate on existing income with a large portion ofthe business park leased well under current market rates. In addition,Central Plaza, a 170,000 square foot two (2) building retail and indus-trial complex at 33300 Alvarado Niles Road sold for $12.9 million($75.84 psf) to Robert and Susan Chang.

New leasing activity in Union City in Q2 2001 slowed considerably compared to the same peri-od last year. However, the recently completed Willowbrook Business Center completed a 34,200square foot lease with Toyota Tsusho America, Inc. for five (5) years in Building 3. This new220,000 square foot project is now shell complete and the remaining space of 137,000 square feetcan accommodate users from 10,000 to 50,000 square feet with asking rental rates ranging from$.55 - $.90 psf per month NNN. Other noteworthy transactions included SBC Communicationsfive (5) year lease transaction for 27,000 square feet at AMB Property Corporation’s CentralAvenue – 1 project, Am-Pac Tires’ 54,720 square foot lease renewal for five (5) years at CatellusDevelopment Corporations AlvaradoBusiness Center, the 73,128 square footlease to Kaiser Foundation at CatellusDevelopment Corporation’s project onEigenbrodt Road, and Keebler Company’s87,000 square foot lease in RREEF’sAlvarado Business Park. Rental rates forwarehouse distribution product haveremained fairly steady ranging from $.48- $.52 psf, per month NNN.

With respect to new construction anddevelopment activity, WP Investments’four (4) building light industrial projectin the Decoto Park on 7th @ Zwissig Wayis now under construction and three ofthe buildings are already in escrow withusers reportedly from the San Francisco Peninsula. Asking prices for the build-ing shells range from $115 to $125 psf. In this same park, Shelton Development Company closedescrow on Catellus' 17 acre parcel for approximately $6.00 psf. The developer intends to enter-tain built-to-suit opportunities at this location.

Although the real estate market has slowed significantly from the feverish pace of 2000, this welllocated submarket has continued to attract institutional investors and strong user demand. Weexpect vacancy rates to remain relatively stable with moderate rent increases witnessed by YearEnd 2001.

Union City Industrial Market

Union City R&D/Flex SpaceVacancy vs. Asking Rental Rates

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

1Q98 2Q98 3Q98 4Q98 1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01$0.70

$0.80

$0.90

$1.00

$1.10

$1.20

$1.30

$1.40

$1.50

$1.60

Vacancy Asking Rent

R&D/Flex

Union City Warehouse SpaceVacancy vs. Asking Rental Rates

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

1Q98 2Q98 3Q98 4Q98 1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01$0.30

$0.35

$0.40

$0.45

$0.50

$0.55

$0.60

Vacancy Asking Rent

Warehouse

RREEF Funds closed escrow on a Principal Capitol Management’sAlvarado Business Park, a 10 building multi-tenant warehouse/distribution

business park for $69.3 million or $56.08 per square foot.

Robert & Susan Chang closed escrow on Mara Gateway LLC’s CentralPlaza, a two building industrial/retail complex for $12,900,000 or $75.84

per square foot.

Kaiser Foundation completed a 78-month lease transaction at 30108Eigenbrodt Way for 73,128 square feet formerly occupied by Apria

Healthcare.

Keebler Company completed a 72-month lease at 4001 Whipple Roadfor 87,469 square feet at RREEF Fund’s Alvarado Business Park.


Union City Industrial SpaceVacancy vs. Asking Rental Rates

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

1Q98 2Q98 3Q98 4Q98 1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01$0.40

$0.45

$0.50

$0.55

$0.60

$0.65

$0.70

$0.75

$0.80

$0.85

Vacancy Asking Rent

Light Industrial



MID - YEAR 2001

14C O L L I E R S I N T E R N A T I O N A L

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Market Statistics - Second Quarter 2001

Available Overall Net LeasingMarket Inventory Square Feet Vacancy Absorption Activity

Current Current 4Q00 2Q01 4Q00 2Q01 YTD 2001 YTD 2001

Class A OfficeOakland DT 6,301,271 341,489 3.7% 5.4% $4.27 $3.50 -108,009 268,743

South Richmond 0 0 NA NA NA NA 0 0

Berkeley DT 442,721 41,258 0.2% 9.3% $3.48 $3.15 -37,896 5,604

Berkeley West 0 0 NA NA NA NA 0 0

Emeryville 2,235,584 580,148 1.4% 26.0% $4.31 $3.00 115,063 141,843

Marina Village 0 0 NA NA NA NA 0 0

Harbor Bay 0 0 NA NA NA NA 0 0

Oakland Airport 453,697 29,696 5.1% 6.5% $2.50 $2.00 -6,424 4,295

9,433,273 992,591 3.1% 10.5% $4.24 $3.29 -37,266 420,485Class B/C & Flex

Oakland DT 5,325,995 654,308 5.7% 12.3% $3.31 $2.50 2,973 213,042

South Richmond 1,989,178 331,398 9.3% 16.7% $2.75 $2.35 41,663 192,100

Berkeley DT 964,539 115,317 0.9% 12.0% $2.81 $2.25 -106,715 18,970

Berkeley West 1,155,121 65,039 5.3% 5.6% $2.62 $2.00 -906 24,658

Emeryville 1,596,209 200,362 3.1% 12.6% $3.99 $2.55 -21,760 86,569

Marina Village 1,527,243 152,171 1.6% 10.0% $3.43 $2.90 -113,780 25,238

Harbor Bay 1,186,687 152,275 7.0% 12.8% $2.31 $2.31 52,363 47,975

Oakland Airport 1,089,247 153,107 9.5% 14.1% $1.93 $1.75 -49,681 41,357

14,834,219 1,823,977 4.8% 12.3% $3.20 $2.40 -195,843 649,909Totals

Oakland DT 11,627,266 995,797 4.8% 8.6% $3.85 $3.04 -105,036 481,785

South Richmond 1,989,178 331,398 9.3% 16.7% $2.35 $2.35 41,663 192,100

Berkeley DT 1,407,260 156,575 0.7% 11.1% $3.02 $2.53 -144,611 24,574

Berkeley West 1,155,121 65,039 5.3% 5.6% $2.62 $2.00 -906 24,658

Emeryville 3,831,793 780,510 2.2% 20.4% $4.16 $2.81 93,303 228,412

Marina Village 1,527,243 152,171 0.4% 10.0% $3.43 $2.90 -113,780 25,238

Harbor Bay 1,186,687 152,275 7.0% 12.8% $2.31 $2.31 52,363 47,975

Oakland Airport 1,542,944 182,803 8.2% 11.8% $2.05 $1.82 -56,105 45,652

Grand Total 24,267,492 2,816,568 3.9% 11.6% $3.64 $2.75 -233,109 1,070,394

Available Overall Net Lease/SaleMarket Inventory Square Feet Vacancy Absorption Activity

Current Current 4Q00 2Q01 4Q00 2Q01 YTD 2001 YTD 2001

IndustrialRichmond 4,900,000 144,262 4.3% 2.9% $0.64 $0.70 65,966 295,478

Oakland 21,909,000 1,169,919 3.8% 5.3% $0.67 $0.65 -337,915 1,128,666

San Leandro 11,750,843 531,629 2.9% 4.5% $0.62 $0.75 -192,743 168,198

Hayward 16,486,971 409,849 3.3% 2.5% $0.72 $0.80 241,321 819,273

Union City 7,880,846 112,199 3.0% 1.4% $0.80 $0.80 178,408 56,297

62,927,660 2,367,858 3.4% 3.8% $0.69 $0.73 -44,963 2,467,912Warehouse

Richmond 4,134,000 448,469 5.8% 10.8% $0.45 $0.54 -209,310 278,790

Oakland 10,791,000 834,618 3.3% 7.7% $0.44 $0.44 -477,260 769,905

San Leandro 14,356,460 490,889 1.2% 3.4% $0.58 $0.52 -320,206 280,290

Hayward 21,062,645 994,922 2.9% 4.7% $0.48 $0.53 -389,093 1,223,559

Union City 6,755,312 796,809 11.3% 11.8% $0.51 $0.54 86,636 374,392

57,099,417 3,565,707 3.7% 6.2% $0.50 $0.51 -1,309,233 2,926,936R&D/Flex

Richmond 1,636,201 151,023 9.8% 9.2% $1.66 $1.50 35,984 212,190

Oakland 230,000 65,000 6.5% 28.3% $1.65 $1.85 10,000 10,000

San Leandro 804,200 20,887 3.3% 2.6% $0.94 $1.30 5,323 7,720

Hayward 4,544,850 340,863 3.6% 7.5% $1.63 $1.60 -179,368 191,520

Union City 870,672 50,475 14.1% 5.8% $1.40 $1.40 98,093 129,425

8,085,923 628,248 5.9% 7.8% $1.54 $1.54 -29,968 550,855

TotalsRichmond 10,670,201 743,754 5.7% 7.0% $0.72 $0.76 -107,360 786,458

Oakland 32,930,000 2,069,537 3.6% 6.3% $0.59 $0.59 -805,175 1,908,571

San Leandro 26,911,503 1,043,405 2.0% 3.9% $0.61 $0.64 -507,626 456,208

Hayward 42,094,466 1,745,634 3.1% 4.1% $0.70 $0.75 -327,140 2,234,352

Union City 15,506,830 959,483 7.3% 6.2% $0.71 $0.72 363,137 560,114

Grand Total 128,113,000 6,561,813 3.7% 5.1% $0.66 $0.68 -1,384,164 5,945,703

Oakland Metropolitan Office StatisticsWtd Average Asking

NNN Rental RateWtd Average Asking

Oakland Metropolitan Industrial Statistics

Full Service Rental Rate

mid-year 2001 collers international · pdf filemid - year 2001 collers international q2 ......

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