The East Bay industrial market in Q3 2025 saw vacancy and availability rates rise, while asking rents declined slightly. Leasing activity remained strong, driven by large transactions in Oakland and Fremont, but net absorption stayed negative and construction activity paused. Explore our full East Bay industrial market review for in-depth analysis and trends.
3Q 2025 East Bay Industrial Market: Key Data Points
- Vacancy Rate Rises: Direct vacancy increased to 8.3%, up 200 bps year-over-year.
- Asking Rents Dip Slightly: Average asking lease rate declined 2.4% YOY to $1.66 PSF NNN.
- Leasing Activity Remains Strong: YTD leasing volume reached 6.48M SF, a 36.1% increase YOY.
- Net Absorption Negative: Direct net absorption totaled -494K SF in Q3, continuing a multi-quarter decline.
- Construction Pipeline Paused: No new space was under construction in Q3, down from 2.07M SF YOY.
- Sales Volume Slips: YTD sales volume fell 6% YOY to 3.4M SF.
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