End of April Bay Area vacancy rate figures remained unchanged. San Francisco held at 6 percent, the same rate since January. San Mateo at 7 percent, the same as November of last year and Oakland-East Bay up a point to 11 percent since January.

Rental rates did dip slightly in these same counties. San Francisco dropped to $33.50 from $35, San Mateo to $34.50 from $36.00 and Oakland-Easy Bay dropped to $23.00 from $24.00.

These rental rate drops have occurred as a result of less overall rental activity in Class A office buildings due to their overall vacancy rates of less than 5 percent, causing less available space to be in play this last quarter. Also new owners of buildings purchased in the heat of the commercial buying frenzy of the last three years have begun to lower their expectations to better meet market demand.

Overall, there is talk that 'the other shoe is about to drop' and that rental rates will fall and vacancies will increase; this has not happened as of yet.