“With the recent increase in ecommerce and focus on speed of product to consumers, we've seen a dramatic need for new warehouse product. In past cycles in the East Bay warehouse market, we typically have approximately 1 million square feet of new warehouse construction in a cycle,” Maguire tells GlobeSt.com. “Within the current cycle, we'll have approximately 6.5 million square feet of new warehouse product shell complete by first quarter 2018. In addition to that, there is another 5 million feet starting construction or working through planning approvals. Adding 11.5 million square feet would be about 15% of new warehouse inventory to the East Bay warehouse market. I haven't seen anything close to this in my 22 years in the business.”

Weil also discussed how the office market differs from the industrial market, mainly in the amount of available space.

“In the East Bay office market, we are seeing a dramatic dichotomy between different Bay Area office regions. San Francisco is still sizzling hot, with large office leases occurring frequently. Oakland has also seen soaring office rents but its leasing activity is limited by the lack of available office space,” Weil tells GlobeSt.com. “While San Francisco office rents on a full-service annualized basis are in the $75 to 80 per rentable square foot range, Oakland is now $60 per rentable square foot. There are several new high-rise office towers under construction in downtown Oakland.”

In contrast, Weil noted that on the Interstate 680 Corridor in the East Bay, there are millions of square feet of available office space, no new construction anywhere on the horizon and class-A fully serviced office rents in the $24 to 36 per rentable square foot range. Large and even medium-size office leases are far and few between, he said, with very little tech relocation or growth and the main tenant type is generally the financial service sector of law firms, CPAs, financial planners and insurance brokers.