Headlines, Trends

Industrial Properties Sell at a Three-Fold Rate in the East Bay

Across the East Bay market, commercial real estate sales have been down compared to previous years. Total commercial property sales volume reached only $2.1 billion through August 2023. Despite a tough market, the industrial segment remains resilient.

Of the total commercial property sales in 2023, the industrial segment accounts for nearly 60%. The sales volume is three times the rate of other sectors in the East Bay, totaling at $1.2 billion. Other sectors holding steady include the retail segment. The total sales volume year-to-date is currently at $367 million. This is the second-highest volume in the market, behind industrial. The most popular listings among investors are grocery-anchored retail centers.

Trailing behind the industrial and retail sectors is the multifamily segment. Of the total sales volume for 2023, multifamily only accounted for 14%. In the segment, the most popular listings comprise of smaller deals with upside rent growth. Falling behind all segments is the office sector. High interest rates and vacancy rates have decreased property values and in many cases, listings are trading below replacement costs. As a result, many office owners are choosing to exit projects now and reallocate money to investments with greater ROI.

Across the market, owners are making careful decisions between exiting or holding on to their properties.

View our current listings here.

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