Oakland Office Market Report
Oakland's Performance Leads the Bay Area;
Muted Supply Growth Boosts Outlook
Pandemic-era shifts aid the East Bay. Throughout the health crisis, the East Bay's high proportion of life science-related employers has helped the metro maintain more sound fundamentals than its Bay Area counterparts, as these jobs are often unable to be performed remotely. Entering April, office vacancy in the Oakland metro rested at 15.8 percent, 390 basis points lower than San Francisco and 10 basis points below San Jose. Since the onset of the health crisis, Bay Area office tenants have exhibited a growing preference for space closer to residents, another factor aiding the East Bay. Recent in-migration to Oakland suggests leasing velocity may further rise in the near term if this trend persists. Additionally, builders have slowed down office construction in the metro, a factor that will nudge expanding firms into existing properties with available space.