Average rental rate decreases, and vacancy rate increases continue into 2021. East Bay recorded a 0.23% decrease in average asking rates quarter-over-quarter, and a 1.35% decrease year-over-year.
Vacancy rates increased to 14.59%, a 1.49% increase quarter-over quarter and a 4.06% increase year-over-year.
Vaccine rollouts will positively impact the East bay market, although the office landscape may shift due to work from home policies, with most users planning to return to office Q3-Q4 2021. The largest transaction belongs to Eat Just leasing 300 Wind River and 1145 Atlantic in Alameda for a combined 113,583 SF as a relocation opportunity for their food tech services. 50% of the tenants in the market consist of life science tenants, a radical shift from pre-pandemic figures. Expect transaction volume to ramp up in the latter half of the year as East Bay continues to capture fleeing San Francisco tenants. East Bay offers tenants generous concessions and relaxed rental rates compared to San Francisco.
Vacancy rates increased to 14.59%, a 1.49% increase quarter-over quarter and a 4.06% increase year-over-year.
Vaccine rollouts will positively impact the East bay market, although the office landscape may shift due to work from home policies, with most users planning to return to office Q3-Q4 2021. The largest transaction belongs to Eat Just leasing 300 Wind River and 1145 Atlantic in Alameda for a combined 113,583 SF as a relocation opportunity for their food tech services. 50% of the tenants in the market consist of life science tenants, a radical shift from pre-pandemic figures. Expect transaction volume to ramp up in the latter half of the year as East Bay continues to capture fleeing San Francisco tenants. East Bay offers tenants generous concessions and relaxed rental rates compared to San Francisco.