MARKET TRENDS

• Vacancy increased by 260 basis points (bps) year over year in the third quarter to 7.0%, while net absorption was negative for the third consecutive quarter, totaling 225,663 square feet (sf). Much of this negative movement was from the Oakland submarket.
• Currently, there is 1.3 million square feet (msf) under construction, an increase from 1.0 msf in the previous quarter. No projects were delivered this quarter.
• As market conditions have slowed, evidenced by heightened vacancy, asking rental rates have remained elevated, averaging $1.25 per square foot in Q3, up from $1.11 in Q3 2023.

Read the full report