Oakland Q2 Office Market Report & Forecast
Tenant Demand from San Francisco Continues to Feed Landlord Optimism in Oakland Metro Markets
Modest leasing activity and low net absorption has not extinguished property owners’ burning optimism about the future of the Oakland Metro market. Rental rates increased between 5 and 6 percent across all sub markets compared to year end 2013. We attribute this to optimistic property owners anticipating robust net absorption during the second half of the year. Tenant demand from San Francisco is the fuel that is feeding the fire. Despite the absence of a large user making the move east, tour activity is frenetic and it is only a matter of time before a big user lands in the inner east bay market.