great to have his perspective on midmarket and the real-estate market two please welcome charlie from shorenstein. [applause] >> well, thank you. i am glad i am speaking ahead of the america's cup, because i imagine there presentation will be 10-fold up what mine will be. so hang in with me here. to try to give context to midmarket, i would try to say a few words about san francisco in general. a quick, easy slide. vacancy rates in san francisco is slightly above 13%. this is city-wide. if you go sub market to sub market, it can change quite a bit. the low point for landlords was 2007. we had single-digit vacancy. during that time, you would see some rental rate growth. we have been pretty fortunate as far as cities across america ago that we have had four positive quarters of absorption out. absorption really measures the underlying size of the office- using tenant base in san francisco. what that really means is job creation in the office-using sectors. we obviously could use a few more quarters of positive absorption. vacancy rates, once they get to around 10%, you see that landlords and tenan