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.
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.