June 14, 2018 Demand for Creative Space Drives Oakland Rent Growth
CBRE reports high demand for creative buildouts in Oakland as the market continues to tighten. The commercial realty brokerage’s most recent Oakland Office Marketview notes quarter-over-quarter rent growth for Class B space (4.2%) easily outpaced growth for Class A assets (1.6%), and explains “the overall look and feel” of Class B creative product makes it “truly a legitimate alternative to premium rents for tenants seeking exciting and desirable space.”
Demand for office space in downtown Oakland has surged as increasing San Francisco office rents have led companies to relocate — many to the East Bay. The office market in downtown Oakland is the tightest in the nation, with lower office vacancy levels than even those in business centers such as Manhattan and Boston.
“Downtown Oakland offices have seen expansion from San Francisco, not just in tech, but primarily in non-tech companies that want to stay in the Bay Area but find the rents in San Francisco too high,” Lexi Russell, a senior research analyst for CBRE in Northern California, told the Mercury-News. “Companies are finding it beneficial to relocate to Oakland because so many of their employees live in the East Bay and the rents are less expensive.”
Download and read the full Marketview report at www.cbre.us