OAKLAND, CA-Colliers International is painting a rosy picture for the Oakland office market in its recently released third quarter report. Demand is far outpacing supply, pushing rental rates above $50 per sf, while vacancy rates have plummeted – from 8.4% at the end of 1999 to 2.6% at the end of the third quarter, ensuring that the Oakland boom will continue as a force to be reckoned with in the Bay Area market.

Over one million sf of class A space was under construction in the Oakland metro area at the end of the third quarter, but nearly half of that space is pre-leased. And with many of the delivery dates more than a year away, Colliers is predicting the market will remain tight in the coming months. Although leasing activity has slowed, is has been due largely to a lack of available space.

Additionally, the report points to continued strength in the East Bay industrial market, particularly along the 80/880 corridor. Strong leasing activity during this quarter has kept the vacancy rate for R&D space under 3%. The report predicts that the coming months will see an increase in development in Oakland and San Leandro, as developers capitalize on the tight markets. Projects already in the ground include the 469,000-sf 555 City Center, the 328,000-sf Watergate IV in Emeryville and the Hollis Business Center, which will bring 220,00 sf online in Emeryville by January 2001.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.