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Market Report

Oakland Industrial Market Report

Midyear 2023

Robust Demand from a Diverse Set of Tenants
Fuels Industrial Construction in the East Bay

Space demand is omnipresent. Proximity to the Port of Oakland, long-term trends in e-commerce, and the metro’s strong economy continue to fuel tenant interest in the East Bay. During the past four quarters ending in March, more than 3.5 million square feet of space was absorbed on net. This cut metro vacancy to 4.2 percent, nearly 300 basis points below the long-term average. Leasing activity has been widespread, with five of Oakland’s six submarkets recording local vacancy declines of at least 120 basis points during this span. Recent commitments from firms in electric vehicle manufacturing, retail warehousing, third-party logistics and biotech/life sciences exemplifies the market’s diversity of occupiers, and should help insulate the sector from steep drops in tenant demand if one of these industries experiences headwinds in the near- to mid-term.

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