Report: East Bay Class B Office Leasing Starts to Improve
Leasing numbers in the Oakland/East Bay office market ended 2022 with shaky numbers, but there may be some light at the end of the tunnel. Despite 4th quarter net absorption of negative 407,000 square feet and an increasing vacancy rate of 18.6%, a new report from CBRE indicates that a wider range of buildings are having leasing success.
“The higher asking rates in Oakland Class B office space are, in part, a result of greater advertised rents becoming available, thus increasing the average asking rate,” commented the CBRE research staff. “However, we are seeing a wider range of tenant profiles entering the demand cycle.” Oakland CBD direct asking rates increased in Q4 to $5.00 per square foot with Class A space going for $5.30.
Alameda leasing remains a bright spot thanks to a couple of life science transactions in the fourth quarter, with the city posting a positive 365,000 net absorption for 2022.
Mark comes to ConnectCRE with an extensive background as a business and news reporter in San Francisco radio, as well as 35 years as a traffic reporter on several stations including KGO, KNBR, KCBS and KFRC. As a business reporter, Mark covered the tech world in Silicon Valley where he became familiar with real estate transactions in the hot Bay Area marketplace. He attended San Jose State University with a BA in Radio and TV Broadcasting and currently resides in the Lake Tahoe area where he gets to frequently enjoy all of his favorite activities: Golfing, Fishing, Hiking and Skiing.