The northern end of the peninsula seems to be enjoying the lion's share of the spoils in the Bay Area space crunch. Encompassing the cities of Burlingame, Millbrae, San Bruno, Brisbane, South San Francisco and Daly City, direct vacancy rates finished the quarter at an amazing 0.5%. San Bruno, Brisbane, Burlingame and Millbrae all came in with vacancies at or under 0.1%.

With the dotcom shakedown in full swing in the area, quite a bit of sublease space has been entering the market. Including available sublease space, the total availability rate for the market hovers just above 4%. Still, lease rates have remained on the upswing, and with large amounts of new space coming onto the market in South San Francisco, San Bruno and Redwood City, the area remains a market to watch. The most sobering statistic comes from looking at the market today versus one year ago. In that time, class A rents have risen 132%, and class B rents on the peninsula have followed closely at 121%.