Oakland Industrial Market Report

Manufacturing and distribution initiatives bolster Oakland fundamentals. Last year, Tesla and Rivian Automotive occupied over 300,000 square feet of new space in the Interstate 880 Corridor. This commitment to manufacturing in the East Bay is set to carry forward, as another 122,000-square-foot move-in nearby is anticipated by Rivian in 2024, helping retain the area’s below market vacancy rate. The Highway 4 Corridor will also maintain tight conditions this year. Entering 2024, local vacancy was at its lowest point since 2018. This feat was assisted by Amazon’s move-in to a 449,000-square-foot facility in February 2023, which has sparked a number of smaller-scale leases nearby. Although the metrowide vacancy rate is still set to rise, as some warehousing tenants let go of space, a more than decade-low delivery slate softens that impact on the market while distribution-related absorption likely remains positive.