Companies looking for office space in the East Bay market have plenty of options for Class A office suites. Overall office availability rates have stayed above 21.7% since Q1 2020 and are currently at 34.8% for Q1 2023. Overall rental rates are also trending downwards, falling to $4.52 this quarter from $4.59 in Q4 2022.
Vacancy rates grew the fastest since last quarter for Class A Offices in Downtown Oakland and Emeryville. This is reflected by drops in the direct asking rates. Direct asking rates for Class A offices in Downtown Oakland declined 4.1% since last quarter to $4.93 FS. Direct asking rates for Class A offices in Emeryville also decreased 4.6% quarter-over-quarter to $4.59 FS. With high vacancy rates and declining direct asking rates for Class A offices in Downtown Oakland, tenants can find it easier to negotiate for more concessions such as lower rent, more tenant improvements, or more free rent.