Greater Oakland Office Market Report
| Average FS Asking Rent (Price/SF) | $4.68 |
| Availability Rate (%) | 20.1% |
| Net Absorption (SF) | 53,119 |
The Greater Oakland market started off the year with ambiguity; tenants were uncertain how to proceed. The market saw a 0.4% increase in the vacancy rate compared to last quarter. With companies announcing a flexible return-to-office option for employees, new and existing tenants will enter the market with an asking rent decrease of $0.07/SF compared to last quarter. This decreased asking rent is likely a result of the historic vacancy rates in the market. Due to the decrease in office usage in the East Bay, the office vacancy rate of 17.6% is its highest peak in over five years.
Optimistic plans for office reentry remain in the Greater Oakland market. Downtown Oakland office leasing has slowly regained traction. Due to the lack of affordable Class A buildings, tenants are turning to Alameda for cheaper rents. Berkeley and Emeryville have also emerged as competitive markets as they offer affordable rents and abundance of parking compared to Oakland. As expected with the high vacancy rate this high, there is little demand for new construction in the Greater Oakland market. Limited new construction coupled with the climate of companies returning to the market suggests rents will be increasing in the future.
Download Greater Oakland Office Market Report 1Q22East Bay Industrial Market Report
| Average NNN Asking Rent (Price/SF) | $1.37 |
| Availability Rate (%) | 4.6% |
| Net Absorption (SF) | 244,732 |
The East Bay industrial market continued where it left off in 2021, with overall steady asking rents, as well as a continually lowering vacancy rate. Properties under construction exploded from 1.0 million square feet in the fourth quarter of 2021 to around 2.3 million in the first quarter of 2022. Net absorption saw a decrease compared to the last quarter but stayed positive at 245,000 square feet. Vacancies ticked down a small amount, dropping from 4.8% to 4.6% this quarter. This remains significantly lower than last year’s vacancy rate of 6.7%.
Download East Bay Industrial Market Report 1Q22