Oakland Industrial Investment Forecast
Retail Tenants Take Active Role in Leasing; Buyers Favor East Bay Industrial Over Other Property Types
Industrial sector among East Bay's strongest. The prolonged recovery in the metro due to a particularly hard-hit economy is moving more quickly for industrial operations. Space demand has improved more than 3.5 percent since the onset of the pandemic and is projected to advance an additional 1.5 percent this year. Much of the space need will come from the retail sector utilizing more direct-to-consumer options which has been crucial to remote workers that were forced to stay away from offices well into 2022 due to COVID-19. Easing concerns surrounding the health crisis will do little to reduce momentum in the East Bay as residents across the Bay Area continue to utilize online retailing evident by Amazon signing two of the three largest leases in 2021. Outside of last-mile distribution the Port of Oakland remains integral to the local industrial sector. Last year the port handled the greatest import volume in its 94-year history.