While 2002 was a challenge for just about every market, Northern California was one of the hardest hit. “The downturn here was more dramatic because of the contrast. We were coming off a period of rapid growth,” says Christopher Peatross, Managing Director for the San Francisco Bay Area. “During 2002, rental rates in Northern California plummeted almost as quickly as they had peaked during the boom, reaching a level in the San Francisco Bay Area commensurate with those of 10 years ago.”

Nonetheless, at year-end, when vacancies in the overall market stood at 16%, CarrAmerica’s vacancy rate was approximately 5%. And the company continued to sign lease agreements at the rate of more than one transaction a week—over 500,000 square feet during the course of the year. According to Peatross, that strong performance, even in the face of a dismal economy, was the result of three factors: “One, we didn’t experience as great a fallout due to the dot-com bust because of the financial stability and strong credit position of our tenants. Two, we have exceptional inventory—quality properties in premier locations—and three, we enjoy great teamwork in a challenging environment.” On average, each of CarrAmerica’s managers in Northern California has more than 15 years of experience—most of it in the Bay Area market. “We view ourselves as a local company,” says Peatross. “We have our ear to the ground. We have strong relationships that yield steady results.”

That ear-to-the-ground approach, combined with the right inventory and location, led to the team’s largest lease agreement of the year. When Safeway Inc. decided to consolidate purchasing nationwide, the choice was CarrAmerica Corporate Center (shown here) for their 145,350-square-foot new offices. Located in Pleasanton, near Safeway’s corporate headquarters, CarrAmerica Corporate Center is a one-million-square- foot, eight-building complex near the intersection of two interstate highways, a major BART terminal intersection and central to the Bay Area.