Why Oakland Is Poised For Another Big Year

Last year put Oakland on the map, as more and more companies fled S.F. prices for the city. Developers and investors have taken notice, and this year should be yet another banner year for the market. You can hear from some of the biggest players in the market at Bisnow's Oakland State of the Market event on Feb. 23 at the Scottish Rite Center. Here are a few the trends from last year that will continue to spark the city.

1. Housing A Hot Issue

Some of the most heated conversations in Oakland last year were centered around housing. The price of high-end homes and apartment rental prices went up significantly in the past year, with Oakland becoming the nation's fourth most expensive rental market.

Perhaps the most striking example of the affordable housing issue surrounded proposals for the 12th Street Remainder parcel on Lake Merritt. The city had originally planned to sell the property to UrbanCore for a tower of market-rate apartments, but the city drew back from that proposal after opposition from the community and questions about the legality of the sale. By December, the city was entertaining four different plans that each included affordable housing.

Signature Development Group's Mason at Hive in Oakland
Photo credit: Mason at Hive

Housing remains in high demand, with Signature Development Group's Mason at Hive (above) the only market-rate development to open in Oakland last year.

Madison Park Financial announced it will invest $88M in three different Oakland multifamily projects in 2016.

There are other projects in the works. We heard about some of them at our last Oakland event.

Holliday Development is focused on The Intersection, a mixed-use development with 150 apartments and 25k SF of retail. The company has two other large projects planned in Oakland. District Development is working on 19th and Broadway, which includes a 33-story, 345-unit tower with about 10k SF of ground-floor retail.

2. Office Market Heats Up

Perhaps the biggest office news in Oakland's booming market was Uber's $123.5M purchase of the Sears Building, now called Uptown Station. It signaled that companies were serious about Oakland and other news bore that out.

UBS AG just bought 1221 City Center in downtown from Westcore Properties and American Realty Advisors. TMG Partners purchased 1330 Broadway for a reported $80M, marking the company's first step into Oakland's downtown office market.

3. Retail On A Roll

Retail is taking off, too, in areas that stand to benefit from more retail options. At The Ridge in Oakland, with Phase 1 underway, we highlighted how plans for the redevelopment include a second phase that will transform the area, bringing in a higher density urban retail environment.

4. Raiders, Warriors Ready To Bail

Even with all the boom talk, the Oakland Raiders were still looking to bail on the city and we could find out this week whether NFL owners want to send them to Los Angeles. Meanwhile, the Golden State Warriors are moving forward with their plans in Mission Bay. So there's a chance this booming city may have to continue its growth without both its basketball and its football teams.

Hear from local luminaries about what's next at Bisnow's Oakland State of the Market event on Feb. 23 at the Scottish Rite Center. Sign up here!

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's San Francisco Newsletters
Related Stories

King Of Prussia Pursues Stadium To Anchor $200M Mixed-Use Complex

1200 White St., Atlanta's Newest Creative Hub, Is Transforming The West End

Prime Residential Acquires Castro District Multifamily: The Bay Area Deal Sheet

Plans For Colorado's Newest Private Golf Course Revealed: The Denver Deal Sheet

Risk-Averse Market Means This Retrofit Success Could Be A One-Off

Silicon Valley Cities See Spike In Office Demolitions

New Transamerica Pyramid Owner Inks 113K SF Of New Leases

Archer Aviation Leases 501K SF Tech Campus Near San Jose

Columbia Property Trust Modifies $1.8B Loan After Multiple Defaults

With Most Parcels Spoken For, Superior's 156-Acre Urban Core Nears Full Build‑Out

Prado Group, Presidio Bay Exit Deal For San Francisco Centre Mall

Brookfield JV Buys Site For 6,500-Unit Project In Boston Suburbs