Pandemic Disruption Continues
The Oakland Metropolitan Area’s office vacancy rate increased in the fourth quarter of 2020 from 9.8 to 10.9 percent. This represents a 3.9 percentage point increase from the 7.0 percent vacancy rate at the beginning of the year as the office market continues to face disruption from the pandemic. Net absorption was negative 379,653 square feet for the fourth quarter and negative 1,004,259 square feet for the year. The combined average asking rate across all classes of office space decreased by $0.08 to $4.46 per square foot per month full service (FS).
Deal velocity has declined as evidenced by the fact there were only two significant lease transactions in the fourth quarter. In the largest lease in the quarter, Agenus leased the entire 83,620 square foot Office/R&D building at 6455 Christie Avenue in Emeryville. In the second largest lease, IAC subleased 19,000 square feet of space in the Uptown Station building located at 1955 Broadway.
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