Oakland Office Market Report

Pace of relinquishment set to slow as office needs become more focused. While demand for shorter lease terms is easing sublease availability, overall vacancy pressures continue to hinder property performance. Metrowide asking rents declined for the fifth consecutive year in 2024, reinforcing tenant interest in more affordable space options. This has favored the budget-friendly Class B/C segment, which saw vacancy tighten over 2024 in the South 680 Corridor and Highway 4 submarkets. Corporate downsizing — led by firms such as Kaiser Permanente — and broader economic uncertainties, however, are expected to keep rates historically elevated this year. Net absorption is forecast to stay slightly negative through 2025, with fewer planned move-ins contributing to the decline. Nevertheless, an anticipated slow-down in large-scale downsizings will drive the metro’s lowest level of space relinquishment since before the pandemic.