Among the large blocks of space open on the Emeryville market are 118,480 sf at Watergate, most of which became available with Siebel Systems moved into new digs at the 433,433-sf Watergate Tower. Other large spaces up for grabs include 170,192 sf at EmeryStation North that was slated to be the new home for NorthPoint Communications; about 156,300 sf of refurbished space at Hollis Business Center; 60,000 sf at Emery Bay Marketplace Tower; and 53,480 sf at Emeryville Farms.

Although the flood of space in Emeryville seems large, other East Bay markets, such as Richmond could be in for an even greater deluge, according to some industry insiders. As much as 374,000 sf of a 1.9 million sf base in Richmond could open soon, according to one report. There is about 184,000 sf that could possibly be ready for sublease immediately, with about 68,000 sf left behind by a company move.

As a result of the new supply, rental rates throughout the East Bay are headed down. One report states that square footage rates in Richmond are at $16 per or $17 per sf, down several dollars from the $24 per sf rate at the end of last year. In Emeryville, the market rate of $54 per sf has dropped to between $39 per and $45 per sf.