A third quarter market brief is expected next week, but preliminary data indicates that 11 of the 12 East Bay markets experienced increases in rental rates over the last three months. The report in large part attributes the gain to astronomical rents across the bay in San Francisco, and larger stores of available space in the East Bay.
The biggest gains were seen in the Lakeshore neighborhood, with current asking prices coming in at $36.12 per sf. This represents a 34.4% increase over the second quarter of 2000. Oakland CBD rents also showed explosive growth this quarter, jumping more than 28% to $33 per sf.
Cushman & Wakefield's data also indicate that while rents are going up, the stock of vacant space has increased as well. While CDB space in Oakland showed only a small increase in available space, non-CBD space vacancies overall have jumped to 6.2%, from 4.8% the previous quarter.
The combination of steadily increasing rents, and an increase in available space can only spell continued growth for East Bay real estate markets. After years of languishing in the shadows of San Francisco, the East Bay seems to be coming into its own. Increased construction in Oakland, and the city's demonstrated friendliness to development point toward the East Bay playing an increasingly high-profile role in the dynamic Bay Area market.
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