Q3 2020 East Bay Occupiers Guide
With a slow reopening under COVID-19 orders, East Bay markets face uncertainties following the election, and pending coronavirus vaccine. East Bay experienced, on average, a 185-bps increase of available space across all submarkets, and negative net absorption. Rental rates declined in all submarkets except for Class A space in Oakland CBD, which increased by 250 bps over Q2. Increased amounts of sublease space entering the market coupled with needs to downsize office space are primary forces for putting downward pressure on direct rental rates. Life Science remains a driving force in the East Bay, with 3 of 4 notable top lease transactions coming from biotech companies. Demand for newly built R&D space is high, with companies such as Exelixis pre-leasing space (1951 Harbor Way) pending development completion over one year away.