The East Bay industrial market in 1Q 2026 reflects rising vacancy and softening demand as leasing activity and sales volume decline sharply year-over-year. Asking rents continue to trend downward, while net absorption remained in negative territory despite an expanding construction pipeline. Explore our full East Bay industrial market report for detailed trends, submarket performance, and development insights.
1Q 2026 East Bay Industrial Market: Key Data Points
- Vacancy Continues to Rise: Direct vacancy increased to 8.4%, up from 7.6% one year ago (80 bps YOY).
- Asking Rents Decline: Average asking lease rates fell to $1.52/SF/Mo, a 10.6% YOY decrease.
- Leasing Activity Drops Significantly: Total leasing activity reached 1.23M SF, down 49.1% YOY.
- Sales Volume Contracts Sharply: Industrial sales volume declined to 422,546 SF, a 77.7% YOY decrease.
- Net Absorption Remains Negative: Direct net absorption totaled –355,850 SF, compared to –477,759 SF in 1Q 2025.
- Construction Pipeline Expands: Space under construction grew to 512,419 SF, up 32.3% YOY.
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