The East Bay industrial market in Q4 2025 experienced stable vacancy rates but continued pressure on rental pricing. Availability remained elevated, while construction activity came to a halt, signaling a slowdown in new supply. Leasing activity showed modest growth year-over-year, though absorption stayed negative. Explore the full East Bay industrial market report for detailed submarket trends and transaction highlights.
4Q 2025 East Bay Industrial Market: Key Data Points
- Vacancy Rate Edges Up: Direct vacancy rose to 8.3%, up 140 bps YOY.
- Availability Holds High: Total availability registered 10.9%, a slight increase from last year.
- Asking Rents Decline: Average asking lease rate fell to $1.62/SF/month, down 4.1% YOY.
- Construction Pipeline Pauses: No space under construction in Q4, compared to 1.47M SF a year ago.
- Leasing Activity Improves: Quarterly leasing reached 1.58M SF, contributing to an 8.6% annual increase.
- Sales Volume Drops: Q4 sales totaled 558,505 SF, down 56.9% YOY.
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