{"id":8712654,"date":"2023-01-11T13:10:18","date_gmt":"2023-01-11T21:10:18","guid":{"rendered":"https:\/\/www.eastbaytimes.com\/?p=8712654&preview=true&preview_id=8712654"},"modified":"2023-01-12T14:27:40","modified_gmt":"2023-01-12T22:27:40","slug":"oakland-east-bay-office-vacancy-rent-rise-year-end-real-estate-build","status":"publish","type":"post","link":"https:\/\/www.eastbaytimes.com\/2023\/01\/11\/oakland-east-bay-office-vacancy-rent-rise-year-end-real-estate-build\/","title":{"rendered":"Oakland-area office vacancies rise at year\u2019s end \u2014 so do rents"},"content":{"rendered":"

OAKLAND —\u00a0Office vacancy levels are rising in the Oakland area, but rents are also on the uptick as the real estate market confronts uncertainties over a wobbly economy, high prices and rising interest rates.<\/p>\n

The Oakland-area office vacancy rate was 18.6% during the October-through-December fourth quarter of 2022, according to a new report from CBRE, a commercial real estate firm.<\/p>\n

The latest vacancy rate was up from a 17.4% level in the July-through-September third period. The Oakland area includes downtown Oakland, Oakland’s Jack London Square district, the Oakland airport area, Berkeley, Emeryville, Richmond and San Leandro.<\/p>\n

Downtown Oakland endured the region’s highest office vacancy rate in the fourth quarter of 2022 at 25.3%, CBRE reported. That was up from 24.1% in the third quarter of 2022.<\/p>\n

Emeryville posted a 23% office vacancy rate in the fourth quarter, which was a big jump from the 18.1% vacancy rate in that city in the third quarter.<\/p>\n

Among other notable markets in the area: Office vacancies during the fourth quarter of 2022 were at 12.6% in Berkeley, 12.5% in Richmond and 11.7% in Oakland’s Jack London Square district.<\/p>\n

Three markets managed to post single-digit office vacancy rates: the Oakland airport area was at 9.9%, Alameda was at 7.2% and San Leandro was at 4.1% in the fourth quarter.<\/p>\n

Office rental rates were a bright spot in the report. Asking rates for office space in the Oakland market area were $4.52 a square foot per month during the fourth quarter, an increase from $4.50 a square foot in the third quarter.<\/p>\n

The region’s largest office lease in the fourth quarter occurred in Alameda, where Exelixis leased 100,300 square feet at 1410 Harbor Bay Parkway.<\/p>\n

CBRE stated that no notable office purchases occurred in the market during the final three months of the year. The real estate firm blamed macroeconomic challenges for this slowdown.<\/p>\n