Q2 2021 East Bay Office Occupiers Guide
As the East Bay closed the second half of the year, we have seen larger deals transpire to strengthen rental rates and decrease vacancy rates. Rental rates increased to $4.42 per square foot, while vacancy rates experienced a slight decrease. Increasing rental rates and decreasing vacancy rates have not been recorded in tandem since pre-pandemic times.
FiveTran recorded the largest transaction of the quarter, with Callisto Media following as the second largest at Uptown Station. Both highlighting that with the June 15th re-opening of California, most tenants are eager to return to the office. While many tenants are opting not to return to the office 5 days a week, most are choosing forms of a hybrid work model with spaces closer to where their employees live. Overall office inventory is decreasing, and vacancy is continuing to decrease as a result of large blocks of office space being absorbed, while life science conversions from office to lab are taking place. Expect rental rates to increase as office demand outpaces newly constructed space.