The Oakland and East Bay office markets are proving to be more resilient than nearby San Francisco, according to new research from Marcus & Millichap.
The reason for the trend is kind of a perfect storm of smaller events. Before the pandemic, many companies priced out of the San Francisco market moved to the East Bay, but many of them, according to the report, were not able to transition to a remote-work model during the pandemic. As a result, those businesses stayed in-office, curtailing the vacancy issues that created a significant challenge for office owners in San Francisco.
Marcus & Millichap research shows the employment market will grow 5% this year, with 54,000 new jobs created. While this does help to support stability in the office sector, it is important to note that the job count is still off by 60,000 from the end of 2019, before the pandemic hit.
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Kelsi Maree Borland
