Market Pulse: East Bay, September 2019

September 2019 East Bay Market Pulse infographic

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 September 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 up to 113 million sq. ft., with approximately 1.2 million sq. ft. under construction on an upward trend. The 12-month net absorption rate is at 1 million sq. ft. of office space. The vacancy rate is up slightly from last month but expected to drop, at 8.2 percent.

For the industrial market, 266 million sq. ft. of space is in the inventory and rising. The space under construction is also rising, at 5.7 million square feet. The 12-month net absorption has dropped significantly compared to last month, at -942,000 sq. ft. of industrial space. The vacancy rate is up slightly from last month and rising, at 4.8 percent.

There are 124 million sq. ft. of retail space available, the same as last month but on an upward trend, with 333,000 sq. ft. under construction on a declining path. The 12-month net absorption rate is at -393,000. Vacancy rates continue to rise, at 3.7%.

The multifamily market is holding strong, up to 171,000 units available in the inventory. Construction is up from last month but headed on a downswing, at 9,800 units in the pipeline. The 12-month net absorption rate is 2,000 units, the same as last month, with a rising vacancy rate of 4.6%.

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.