market pulse east bay october 2019

Market Pulse: East Bay, October 2019

Welcome to the NAI Northern California’s “Market Pulse” feature. We checked the pulse of the East Bay commercial real estate market to discover the ups and downs of the office, industrial, retail, and multifamily markets. Each market has four dimensions: current inventory, under construction, 12-month net absorption, and vacancy rate.

Check out our October 2019 East Bay Market Pulse infographic. If a dimension is on the rise, the pulse goes above the baseline; if it’s on the decline or negative, the pulse will dip below the baseline.

This month the East Bay office market’s inventory is holding steady at 113 million sq. ft. with approximately 1 million sq. ft. under construction (slightly less than in September). The 12-month net absorption rate is at 1.1 million sq. ft. of office space, a minor increase from last month, and is expected to continue rising. The vacancy rate is higher than last month, but is expected to drop, at 8.6 percent.

For the industrial market, 266 million sq. ft. of space is in the inventory, the same as last month, but this figure is expected to rise. The space under construction, 5.3 million sq. ft., is down from last month and projected to continue to decline. The 12-month net absorption rate continues to drop and is currently at -1.2 million sq. ft. of industrial space. The vacancy rate is slowly increasing at 4.9 percent.

There are 124 million sq. ft. of retail space available, which is the same as August and September, but this is expected to increase, with 333,000 sq. ft. under construction. This is also the same as September, with a decrease expected. The 12-month net absorption rate is at -421,000 square feet. Vacancy rates are slightly down from last month, at 3.6%, but are expected to rise.

The multifamily market is holding strong with 171,000 units available in the inventory. Construction is up from last month, but is expected to go on a downswing, with 10,000 units in the pipeline. The 12-month net absorption rate is 2,000 units and has been the same for the last two months. The vacancy rate is steadily rising, up to 4.9% this month.

For more detailed updates or to find out how the East Bay’s submarkets are doing, contact one of our advisors. Whether you’re interested in officeindustrialretail, or multifamily properties, we can help.