Q4 2021 East Bay Office Occupiers Guide
East Bay’s office market concluded 2021 with minimal recovery. Covid variants, supply chain constraints, and uncertainty in fleshed-out hybridwork models all contributed to a pushback on the return-to-office. This is not to say activity did not take place. Gensler recorded the largest transaction of the quarter, renewing at 2101 Webster Street for 10 years. Vacancy rates continued to climb throughout 2021, with vacancy slowing down in the fourth quarter, increasing to 17%. A flight to quality was evident throughout 2021, continuing into the fourth quarter. Class A rental rates in Emeryville and Alameda recorded a 1.9% and 3.4% quarterly increase, respectively. Investor confidence remained strong in the East Bay with record number of venture capital funding. Over $10.5 billion was invested in 2021, compared to roughly $5B in 2020. Though slow to recover, looking forward, 2022 shows optimism for the East Bay.