Q3 2022 East Bay Office Occupiers Guide
Quarterly metrics for the East Bay Office Market continue leaning towards a tenant-favorable market. Current availability rates have climbed to a historic 35.1% of total inventory as the number of available direct and sublease spaces continue to climb. Absorption for Q3 2022 recorded negative 181K SF. After years of hybrid and remote work schedules, companies have opted for smaller office footprints.
Even amongst these market indicators, overall direct asking rents have stabilized at $4.60 FS for the region. Asking rates in the Oakland CBD and Emeryville have remained largely stable over the last few quarters despite increases in vacancies above 21.0% for both markets. As a result, it is an optimal time for tenants to negotiate for more tenant improvements, free rent, and lower base rates to better reflect market realities.
Even amongst these market indicators, overall direct asking rents have stabilized at $4.60 FS for the region. Asking rates in the Oakland CBD and Emeryville have remained largely stable over the last few quarters despite increases in vacancies above 21.0% for both markets. As a result, it is an optimal time for tenants to negotiate for more tenant improvements, free rent, and lower base rates to better reflect market realities.