The space is being subleased from SmartAge.com, a provider of business - to - business online promotional services and products. The lease expires in February 2005.

Meanwhile, in the similarly suffering North Financial District, law offices are on the move. Washburn, Brisco & McCarthy signed to two floors or a total 25,000 sf at 111 Sutter Street. The firm is moving from 55 Francisco Street, in the north waterfront area to be back in the financial district. Alexander Ogilvy public relations firm has also leased 26,000 sf at the 285,000 sf building, which has been brought up to contemporary Class A standards over the past two years.

According to Grubb & Ellis, although the number of leasing transactions was slightly higher in first quarter 2001, the average transaction size fell sharply to just over 8,300 feet. Experts believe the office market here will reach bottom soon and attain a more sustainable level.