Rents and Vacancy Show Signs of Stabilizing
The Oakland metropolitan area’s office vacancy rate increased from 15.5 percent to 15.6 percent in the fourth quarter of 2022 and continues to be impacted by the pandemic and drop in office use. Net absorption was negative 12,691 square feet for the fourth quarter and negative 613,741 square feet YTD for 2022. The combined average asking rate across all classes of office space decreased by $0.01 per square foot to $4.44 per square foot per month full service (FS). These figures suggest that rental and vacancy rates in the Oakland office market in the Oakland metropolitan area are stabilizing. One likely explanation is the continued conversion of office to life science space, as evidenced by the largest leases this quarter.
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