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SAN FRANCISCO—“The East Bay has increasingly become an attractive location for tenants as San Francisco options diminish and pricing increases.” That is according to Amber Schiada, VP and director of research for the Northern California and Rocky Mountain Region at JLL.
And it's not just the margin-sensitive tenants that are interested, she says, but tenants in all industries. “The North 680 Corridor offers many of the same amenities that are attractive in an urban market, especially submarkets like Downtown Walnut Creek where there is a mix of housing, retail, and access to transportation that create a rich environment.”
JLL notes that Healthcare, FIRE and software/cloud information tenants accounts for 60% of active office requirements. As demand is expected to continue throughout 2015, the vacancy rate will continue to decline.
The live-work-play environment has been hot, company research shows. Downtown Walnut Creek experienced a sharp decline in vacancy between 2011 to 2012 with the redevelopment of Broadway Plaza Mall underway. Pleasant Hill BART will continue to see vacancy decline in 2015 due to positive leasing trends in 2014. In addition, two large blocks available were leased up leaving no available options to tenants in the market.
Check out the below graph for more on the subject.
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