Tenant demand has consistently outpaced supply during the past 18 months in San Francisco, leading to tight supply within existing buildings and no supply within new construction buildings scheduled for delivery through 2019. Driven by four fully preleased construction completions, SF Peninsula occupancy gains were nearly 300,000 sq. ft. during Q2 2018. Leasing activity by large tenants sized 100,000 sq. ft. or more in Q2 2018 contributed greatly to Silicon Valley reaching a 20-year high for positive net absorption during the first half of the year. Record-breaking rents, dot-com level vacancy, and an impending supply gap in Downtown San Francisco continues to benefit the Oakland market as tenants turn East seeking affordability and flexibility. The Class A product type lead in leasing activity with the bulk of Class A leasing in the I-680 Corridor's Tri-Valley or South segment of the market.