Asking rents remained high in the 1st quarter but have stabilized as the East Bay market approaches equilibrium. Tenants seeking relief from San Francisco and Oakland markets are finding rents in BART-centric markets near the highest rent levels in a decade.
- The East Bay Office market Class A/B vacancy rate experienced a slight increase in Q1 2017 to 10.91%. Danville/Alamo (5.15%) and Lamorinda (6.05%) submarkets are the tightest markets. Walnut Creek Shadelands (22.03%) and Dublin (16.81%) are the submarkets with the highest vacancy.
- Direct asking rental rates remained steady for Class A ($32.81/rsf) and Class B ($29.22/rsf). Class A asking rents are highest in the BART-centric submarkets of Walnut Creek Downtown/BART ($44.90/rsf), Lamorinda ($44.64/rsf), and Pleasant Hill ($41.13/rsf).
- Tenants seeking relief from $40 submarkets are finding value in San Ramon with quality space and lower asking rents for Class A ($29.09) and Class B ($26.40).