The Oakland Metropolitan Area’s office vacancy rate increased appreciably in the second quarter of 2020, from 7.6 to 8.8 percent. This increase was anticipated due to COVID-19’s disruption of economic activity which has deepened the current recession. Despite the downturn, some positive signs have emerged. The unemployment rate in the Oakland-Hayward-Berkeley Metropolitan Division has reversed its recent sharp upwards trajectory and declined from 14.2 percent in April to 13.5 percent in May, suggesting that a gradual economic recovery may be occurring. The long-term outlook for office property demand remains uncertain as tenants and investors re-evaluate their office space needs in a changed world.
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