Facebook, Tesla, Kaiser, Blue Shield, Rodan & Fields….all tenants in the East Bay leasing 100,000 + SF of office space. Seems like every day a notable company is jumping over the bridge and tunnel. Great for the East Bay economy, even better for East Bay real estate!
Don’t be fooled by this graph. Markets like Oakland, Fremont, and Emeryville are well below historical vacancy rates. The pressure, cause by demand in surrounding markets, like San Francisco, the Peninsula, and San Jose, has made tenants like these strongly consider the competitive rates of the East Bay. Furthermore, having an office in the East Bay makes all the difference in employee retention.
Will we continue to see more of this? Yes.
For how long? Until these companies stop growing and hiring more employees.