The following reflects East Bay industrial market conditions as of Q3 2026.
The East Bay industrial market in Q3 2026 experienced steady direct vacancy and year-over-year increases in net absorption and construction deliveries, while rental rates decreased. Explore our full East Bay industrial market report for deeper insights into leasing activity, sale transactions, and submarket performance.
Frequently Asked Questions
What is the East Bay industrial vacancy rate in Q3 2026?
The East Bay direct industrial vacancy rate was 8.3% in Q3 2026, according to Kidder Mathews research (Data source: CoStar). That is down from 8.7% in Q2 2026 and unchanged from 8.3% in Q3 2025. Total vacancy, which includes sublet space, was 10.0%.
Which East Bay industrial submarkets had the highest and lowest vacancy in Q3 2026?
Berkeley/Albany had the highest direct industrial vacancy rate in the East Bay in Q3 2026 at 17.4%, followed by Emeryville at 13.1%, according to Kidder Mathews research (Data source: CoStar). Fremont/Newark had the lowest at 5.4%, followed by Union City at 6.1%. The East Bay overall direct vacancy rate was 8.3%.
What is the East Bay industrial availability rate in Q3 2026?
The East Bay industrial availability rate was 10.8% in Q3 2026, according to Kidder Mathews research (Data source: CoStar). That is down from 11.3% in Q2 2026 and 30 basis points lower than the 11.1% recorded in Q3 2025.
What are average industrial asking rents in the East Bay in Q3 2026?
The average asking lease rate for East Bay industrial space was $1.60 per square foot per month in Q3 2026, according to Kidder Mathews research (Data source: CoStar). That is up from $1.59 in Q2 2026 but 3.6% below the $1.66 recorded in Q3 2025.
How much do East Bay industrial rental rates vary by submarket in Q3 2026?
Average direct industrial rental rates in the East Bay ranged from $1.23 per square foot per month in Alameda to $4.51 in Emeryville in Q3 2026, according to Kidder Mathews research (Data source: CoStar). Fremont/Newark averaged $1.71, Berkeley/Albany $1.86, and Hayward $1.39. By building type, flex space averaged $2.26 and warehouse/distribution space averaged $1.35.
How much industrial space was leased in the East Bay in Q3 2026?
East Bay industrial leasing activity totaled 3,105,360 square feet in Q3 2026, according to Kidder Mathews research (Data source: CoStar). Year-to-date leasing activity reached 8,780,167 square feet, up 13.1% from 7,761,372 square feet in the same period of 2025. Fremont/Newark led submarket leasing with 1,255,741 square feet in the quarter, followed by Hayward with 618,462 square feet.
What was industrial net absorption in the East Bay in Q3 2026?
East Bay industrial direct net absorption was positive 667,241 square feet in Q3 2026, according to Kidder Mathews research (Data source: CoStar). Net absorption measures the change in occupied space, so a positive figure means more space was occupied than vacated during the quarter. Year-to-date net absorption was -135,790 square feet, compared with -1,275,260 square feet in the same period of 2025. Fremont/Newark (487,649 square feet) and Hayward (350,609 square feet) led submarket absorption.
How much industrial space is under construction in the East Bay in Q3 2026?
The East Bay had 542,547 square feet of industrial space under construction in Q3 2026, up 24.5% from 435,808 square feet in Q3 2025 and up from 505,680 square feet in Q2 2026, according to Kidder Mathews research (Data source: CoStar). Construction deliveries totaled 327,931 square feet in Q3 2026, equal to the 2026 year-to-date total and above the 220,495 square feet delivered in 2025 year to date. By submarket, Fremont/Newark had 343,152 square feet under construction and Hayward had 199,395 square feet.
What are the largest industrial development projects in the East Bay in Q3 2026?
The largest significant industrial development project in the East Bay in Q3 2026 is Campus @ Bayside in Fremont/Newark, a 210,795-square-foot manufacturing project scheduled for delivery in 4Q 2027, according to Kidder Mathews research (Data source: CoStar). Two data center projects are in Hayward: SVY03 Campus at 100,000 square feet (3Q 2028 delivery) and Diablo Park at 99,395 square feet (1Q 2027 delivery).
What was the largest industrial sale in the East Bay in Q3 2026?
The largest industrial sale in the East Bay in Q3 2026 was 21001-21005 Cabot Blvd in Hayward, a 248,860-square-foot property that Lift Partners bought from B9 Sequoia Torrance Owner, LP for $59,375,000 ($238.59 per square foot), according to Kidder Mathews research (Data source: CoStar). Industrial sales volume totaled 673,715 square feet in Q3 2026 and 3,696,553 square feet year to date, up 72.5% from 2,142,782 square feet in the same period of 2025.
What was the largest industrial lease in the East Bay in Q3 2026?
The largest significant industrial lease in the East Bay in Q3 2026 was 200,000 square feet at 8311 Central Ave in Newark, where Quanta Services leased from landlord Prologis in September 2026, according to Kidder Mathews research (Data source: CoStar). The next largest were 40,000 square feet at 30301-30361 Whipple Rd in Union City (landlord DWS Group, tenant undisclosed) and 35,000 square feet at 21053-21075 Alexander Ct in Hayward (landlord St. Paul Fire, tenant RS Hughes).
What is the outlook for the East Bay industrial market as of Q3 2026?
Kidder Mathews research data for Q3 2026 shows mixed signals for the East Bay industrial market (Data source: CoStar). Quarter over quarter, direct vacancy fell from 8.7% to 8.3%, availability fell from 11.3% to 10.8%, and asking rents rose from $1.59 to $1.60 per square foot per month. Year over year, vacancy was unchanged at 8.3%, asking rents fell 3.6%, and space under construction increased 24.5% to 542,547 square feet. Direct net absorption was positive 667,241 square feet in Q3 2026, though year-to-date net absorption remained at -135,790 square feet.
Last updated: Q3 2026. Data source: CoStar. Compiled by the Kidder Mathews Research Group.
Q3 2026 East Bay Industrial Market: Key Data Points
Explore our full East Bay industrial market review for deeper insights into leasing trends, sale activity, and submarket performance.
- Vacancy: The East Bay direct vacancy rate was 8.3% in Q3 2026, down from 8.7% in Q2 2026 and unchanged from Q3 2025. Total vacancy, including sublet space, was 10.0%.
- Net Absorption: Direct net absorption was positive 667,241 SF in Q3 2026. Year-to-date net absorption was -135,790 SF, compared with -1,275,260 SF in 2025 year to date.
- Leasing Activity: Leasing activity totaled 3,105,360 SF in Q3 2026 and 8,780,167 SF year to date, up 13.1% year over year.
- Asking Rents: The average asking lease rate was $1.60 per SF per month, up from $1.59 in Q2 2026 and down 3.6% from Q3 2025.
- Construction: 542,547 SF was under construction, up 24.5% year over year, and 327,931 SF was delivered in Q3 2026.
- Sales Activity: Sales volume reached 673,715 SF in Q3 2026 and 3,696,553 SF year to date, up 72.5% year over year. The largest sale was 21001-21005 Cabot Blvd in Hayward at $59,375,000.
Submarket Statistics
| Submarket | Total Inventory (SF) |
Direct Vacancy Rate |
Total Vacancy Rate |
Total Availability Rate |
3Q26 Direct Net Absorption (SF) |
SF Under Construction |
3Q26 Leasing Activity (SF) |
Average Direct Rental Rate (NNN) |
|---|---|---|---|---|---|---|---|---|
| Richmond | 17,950,145 | 10.1% | 10.7% | 9.1% | -115,184 | 0 | 448,445 | $1.48 |
| Berkeley/Albany | 7,802,723 | 17.4% | 17.9% | 18.3% | -60,168 | 0 | 19,185 | $1.86 |
| Emeryville | 4,180,594 | 13.1% | 14.2% | 13.7% | -29,886 | 0 | 176,275 | $4.51 |
| Oakland | 34,449,814 | 9.7% | 11.4% | 12.6% | 89,705 | 0 | 222,536 | $1.40 |
| Alameda | 6,564,580 | 10.0% | 10.4% | 12.3% | 27,366 | 0 | 0 | $1.23 |
| San Leandro/San Lorenzo | 24,325,276 | 8.2% | 10.3% | 12.2% | -191,941 | 0 | 155,373 | $1.60 |
| Hayward | 43,476,746 | 8.8% | 11.7% | 14.0% | 350,609 | 199,395 | 618,462 | $1.39 |
| Union City | 14,276,595 | 6.1% | 6.9% | 6.9% | 109,091 | 0 | 209,343 | $1.36 |
| Fremont/Newark | 58,575,070 | 5.4% | 6.8% | 6.8% | 487,649 | 343,152 | 1,255,741 | $1.71 |
| Submarket | Total Inventory (SF) | Direct Vacancy Rate | Total Vacancy Rate | Total Availability Rate | 3Q26 Direct Net Absorption (SF) | SF Under Construction | 3Q26 Leasing Activity (SF) | Average Direct Rental Rate (NNN) |
|---|---|---|---|---|---|---|---|---|
| Total | 211,601,543 | 8.3% | 10.0% | 10.8% | 667,241 | 542,547 | 3,105,360 | $1.60 |
| Submarket | Total Inventory (SF) | Direct Vacancy Rate | Total Vacancy Rate | Total Availability Rate | 3Q26 Direct Net Absorption (SF) | SF Under Construction | 3Q26 Leasing Activity (SF) | Average Direct Rental Rate (NNN) |
|---|---|---|---|---|---|---|---|---|
| General Industrial | 46,468,219 | 5.8% | 6.7% | 6.5% | 462,549 | 99,395 | 538,205 | $1.45 |
| Warehouse/Distribution | 124,452,416 | 7.8% | 9.7% | 10.2% | 263,247 | 443,152 | 1,844,698 | $1.35 |
| Flex | 40,680,908 | 13.0% | 14.7% | 15.3% | -58,555 | 0 | 722,457 | $2.26 |
| Submarket | Total Inventory (SF) | Direct Vacancy Rate | Total Vacancy Rate | Total Availability Rate | 3Q26 Direct Net Absorption (SF) | SF Under Construction | 3Q26 Leasing Activity (SF) | Average Direct Rental Rate (NNN) |
|---|---|---|---|---|---|---|---|---|
| 5,000-24,999 SF | 38,198,611 | 5.3% | 5.9% | 6.7% | 11,824 | 0 | 181,733 | $1.44 |
| 25,000-49,999 SF | 36,480,291 | 8.3% | 9.6% | 10.3% | -105,147 | 0 | 479,057 | $1.63 |
| 50,000-99,999 SF | 45,452,576 | 9.7% | 11.2% | 12.4% | 162,046 | 199,395 | 874,768 | $1.59 |
| 100,000-199,999 SF | 42,623,401 | 7.9% | 8.9% | 9.4% | 572,852 | 0 | 990,827 | $1.65 |
| 200,000+ SF | 48,846,664 | 9.8% | 13.2% | 12.3% | 25,666 | 343,152 | 578,975 | $1.57 |
Significant Sale Transactions Q3 2026
| Property | Submarket | SF | Sale Price | $/SF | Buyer | Seller |
|---|---|---|---|---|---|---|
| 21001-21005 Cabot Blvd | Hayward/Castro Valley | 248,860 | $59,375,000 | $238.59 | Lift Partners | B9 Sequoia Torrance Owner, LP |
| 2910 Faber St | Hayward/Castro Valley | 53,892 | $17,000,000 | $315.45 | LBA Logistics | Liancheng Investments, LLC |
| 2020 N Loop Rd | Alameda | 16,350 | $6,500,000 | $397.55 | Santa Clara Systems | Sheedy, Inc. |
Significant Lease Transactions Q3 2026
| Property | Submarket | SF | Transaction Date | Landlord | Tenant |
|---|---|---|---|---|---|
| 8311 Central Ave | Newark | 200,000 | September 2026 | Prologis | Quanta Services |
| 30301-30361 Whipple Rd | Union City | 40,000 | September 2026 | DWS Group | Undisclosed |
| 21053-21075 Alexander Ct | Hayward | 35,000 | September 2026 | St. Paul Fire | RS Hughes |
Significant Development Projects
| Property | Submarket | SF | Type | Delivery Date |
|---|---|---|---|---|
| Campus @ Bayside | Fremont/Newark | 210,795 | Manufacturing | 4Q 2027 |
| SVY03 Campus | Hayward | 100,000 | Data Center | 3Q 2028 |
| Diablo Park | Hayward | 99,395 | Data Center | 1Q 2027 |
Data as of Q3 2026. Source: CoStar. Prepared by the Kidder Mathews Research Group.
ContactGARY BARAGONA |
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