According to Colliers Internationl's fourth-quarter report, overall warehouse vacancy rate in the Oakland metropolitan area at yearend 2002 was 9%, up from 7.3% at the end of 2001.

"The Oakland metropolitan industrial market is in much better shape than the office market and many other industrial markets throughout the country," says Greig Lagomarsino of Colliers. "The area's great diversity and lack of dependence on the technology sector will allow it to outperform other segments of the real estate market throughout this recession,"he says. "The regional economy is proving to be resilient and continues to attract a wide variety of businesses from the surrounding markets such as San Francisco and the Peninsula and South Bay."

Lagomarsino represented the landlord, Lend Lease Real Estate Investments, in the transaction, while Richard Hunter, with CB Richard Ellis, represented Truck-Rail Handling. The lease terms are confidential.