Several companies have chosen to relocate to Oakland to combat pricey San Francisco rents, but the influx of tenants is also causing rents to rise rapidly in the area.
For Q3, four of the 10 largest leases in the Inner East Bay involved relocation from San Francisco to Oakland, the San Francisco Business Times reports. Among the companies making the jump is the Sierra Club. The company is moving to a new 38.8k SF space at 2808 Webster St. in Oakland once its current lease expires due to a doubling of rents. All told, office vacancies in downtown Oakland have dropped to 5.4% with a net absorption of 200k SF for Q3.
While rents remain about 30% lower in Oakland when compared to San Francisco, tenants may begin looking to the other Inner East Bay cities like Alameda, Berkeley and Emeryville. [SFBT]
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