The following reflects East Bay office market conditions as of Q2 2026.
The East Bay office market in Q2 2026 experienced rising vacancy, with the direct vacancy rate climbing 180 basis points year-over-year to 14.3% and asking rents falling 8.7% to $3.55 per square foot, while net absorption remained negative and construction deliveries held steady near zero. Explore our full East Bay office market report for deeper insights into submarket performance, leasing activity, and investment trends.
Frequently Asked Questions
What is the current office vacancy rate in the East Bay for Q2 2026?
The direct vacancy rate for East Bay office properties was 14.3% in Q2 2026, according to Kidder Mathews research. This is up 180 basis points from 12.5% a year earlier. The total vacancy rate, which includes sublease space, was 15.7% for the East Bay overall.
How does East Bay office availability compare across submarkets?
The total availability rate across the East Bay office market was 17.8% in Q2 2026, up 140 basis points year-over-year from 16.4% (Data source: CoStar). Availability ranged widely by submarket, from 0.0% in San Lorenzo to as high as 23.9% in Emeryville.
What are average office asking rents in the East Bay in Q2 2026?
The East Bay’s overall direct asking rent was $3.55 per square foot per month in Q2 2026, down 8.7% from $3.89 a year earlier, according to Kidder Mathews research. Submarket rents ranged from $2.00 per square foot in San Pablo to $4.48 per square foot in Emeryville.
How much office leasing activity occurred in the East Bay in Q2 2026?
East Bay office leasing activity totaled 472,237 square feet in Q2 2026, bringing year-to-date leasing activity to 715,147 square feet. That is down 37.0% from 1,134,389 square feet leased over the same period in 2025 (Data source: CoStar).
What is net absorption and how did the East Bay office market perform in Q2 2026?
Net absorption measures the change in occupied office space, and the East Bay posted negative net absorption of -322,645 square feet in Q2 2026, according to Kidder Mathews research. Year-to-date net absorption stood at -227,283 square feet, compared to -98,940 square feet over the same period in 2025, indicating more space was vacated than filled.
How much new office construction is underway in the East Bay?
There were 383,000 square feet of office space under construction in the East Bay as of Q2 2026, up from 56,176 square feet a year earlier, according to Kidder Mathews research. No new construction deliveries were recorded in Q2 2026 or year-to-date.
What was the largest office sale transaction in the East Bay in Q2 2026?
The largest sale was 6537 Foothill Blvd in Oakland’s South/Airport submarket, a 6,578-square-foot property that sold for $1,530,000, or $232.59 per square foot (Data source: CoStar). Endless Grace, LLC purchased the property from Bay Area Haven, LLC.
What was the largest office lease transaction in the East Bay in Q2 2026?
The largest lease was a renewal by World Market for 83,000 square feet at 1201 Marina Village Pkwy in Alameda, signed in April 2026, according to Kidder Mathews research. DRA Advisors is the landlord. World Market also renewed 24,000 square feet at the adjacent 1151 Marina Village Pkwy in the same transaction period.
Which East Bay office submarkets have the highest and lowest vacancy?
Oakland Downtown had the highest direct vacancy rate at 20.3% in Q2 2026, while San Lorenzo had the lowest at 0.0%, according to Kidder Mathews research. By property class, Class A vacancy was highest at 24.0%, compared to 13.7% for Class B and 6.6% for Class C.
What is the outlook for the East Bay office market?
The East Bay office market continues to face softening conditions, with rising vacancy, declining rents, and negative net absorption reflecting reduced tenant demand, according to Kidder Mathews research. Construction activity remains limited, with 383,000 square feet under construction and no deliveries recorded in Q2 2026, suggesting supply growth will stay muted in the near term.
Last updated: Q2 2026. Data source: CoStar. Compiled by the Kidder Mathews Research Group.
Q2 2026 East Bay Office Market: Key Data Points
Explore our full East Bay office market review for deeper insights into leasing trends, sale activity, and submarket performance.
- Vacancy rate rising: The direct vacancy rate reached 14.3% in Q2 2026, up 180 basis points year-over-year, while total vacancy rose to 15.7%.
- Asking rents declining: The average direct asking rent fell 8.7% year-over-year to $3.55 per square foot per month.
- Negative net absorption: The East Bay recorded -322,645 square feet of net absorption in Q2 2026, bringing the year-to-date total to -227,283 square feet.
- Leasing activity down year-over-year: Year-to-date leasing activity of 715,147 square feet is down 37.0% from 1,134,389 square feet in the same period of 2025.
- Construction pipeline limited: 383,000 square feet were under construction as of Q2 2026, with no new deliveries recorded during the quarter or year-to-date.
- Notable Q2 2026 sale: 6537 Foothill Blvd in Oakland’s South/Airport submarket sold for $1,530,000 ($232.59/SF), the quarter’s largest sale transaction.
Submarket Statistics
| Submarket | Total Inventory (SF) |
Direct Vacancy Rate |
Total Vacancy Rate |
2Q26 Total Net Absorption (SF) |
YTD Total Net Absorption (SF) |
2Q26 Leasing Activity (SF) |
Direct Rental Rate |
|---|---|---|---|---|---|---|---|
| Oakland Downtown | 20,694,006 | 20.3% | 21.7% | -230,293 | 3,442 | 188,112 | $3.85 |
| Oakland – Jack London Square | 1,373,750 | 19.9% | 20.4% | -69,918 | -34,073 | 9,164 | $3.10 |
| Oakland CBD Total | 22,067,756 | 20.2% | 21.7% | -300,211 | -30,631 | 197,276 | $3.69 |
| Alameda | 4,049,243 | 6.8% | 8.5% | -23,098 | -119,079 | 107,882 | $3.02 |
| Albany | 163,813 | 3.3% | 3.3% | 2,958 | 2,561 | 853 | $2.62 |
| Berkeley | 5,417,221 | 11.8% | 15.0% | 51,974 | -56,460 | 33,581 | $3.26 |
| Castro Valley | 530,056 | 2.6% | 2.6% | 2,098 | -4,226 | 1,140 | $3.35 |
| El Cerrito | 170,804 | 11.2% | 11.2% | -4,900 | -2,500 | 0 | $3.55 |
| Emeryville | 4,347,948 | 18.5% | 21.8% | -54,756 | -4,562 | 58,450 | $4.48 |
| Hayward | 2,543,689 | 5.1% | 5.2% | 6,670 | 14,214 | 4,061 | $2.09 |
| Oakland | 30,335,774 | 17.5% | 18.6% | -335,502 | -65,915 | 256,608 | $3.60 |
| Richmond | 1,911,242 | 9.5% | 9.5% | -3,571 | 5,658 | 4,325 | $2.28 |
| San Leandro | 2,021,370 | 4.6% | 4.8% | 35,182 | 34,447 | 5,337 | $2.63 |
| San Lorenzo | 20,453 | 0.0% | 0.0% | 0 | 0 | 0 | N/A |
| San Pablo | 271,580 | 0.8% | 0.8% | 300 | 300 | 0 | $2.00 |
| Union City | 538,708 | 3.3% | 6.3% | 0 | -31,721 | 0 | $2.50 |
| East Bay Total | 52,321,901 | 14.3% | 15.7% | -322,645 | -227,283 | 472,237 | $3.55 |
| Submarket | Total Inventory (SF) |
Direct Vacancy Rate |
Total Vacancy Rate |
2Q26 Total Net Absorption (SF) |
YTD Total Net Absorption (SF) |
2Q26 Leasing Activity (SF) |
Direct Rental Rate |
|---|---|---|---|---|---|---|---|
| Class A | 11,895,209 | 24.0% | 27.1% | -127,718 | -147,906 | 125,055 | $4.45 |
| Class B | 27,731,804 | 13.7% | 14.7% | -204,331 | -10,851 | 297,362 | $3.00 |
| Class C | 12,694,888 | 6.6% | 7.3% | 9,404 | -68,526 | 49,820 | $2.82 |
Significant Sale Transactions Q2 2026
| Property | Submarket | SF | Sale Price | $/SF | Buyer | Seller |
|---|---|---|---|---|---|---|
| 6537 Foothill Blvd | Oakland-South/Airport | 6,578 | $1,530,000 | $232.59 | Endless Grace, LLC | Bay Area Haven, LLC |
| 2021 Clement Ave | Alameda | 4,245 | $1,350,000 | $318.02 | Martin Kurkchubasche | Risewell Homes |
| 22762-22770 Main St | Hayward/Castro Valley | 4,617 | $1,200,000 | $259.91 | Main Street Properties, LLC | Nor Cal Realty |
Significant Lease Transactions Q2 2026
| Property | Submarket | SF | Transaction Date | Landlord | Tenant |
|---|---|---|---|---|---|
| 1201 Marina Village Pkwy | Alameda | 83,000 | April 2026 | DRA Advisors | World Market (Renewal) |
| 1151 Marina Village Pkwy | Alameda | 24,000 | April 2026 | DRA Advisors | World Market (Renewal) |
| 740 Heinz | Berkeley | 12,500 | April 2026 | Wareham Development Group | Rigetti Computing |
Significant Under Construction
| Property | Address | Submarket | Square Feet | Owner | Delivery Date |
|---|---|---|---|---|---|
| The Union 1.2 | 1100 Decoto Rd | Union City | 383,000 | Community Redevelopment Agency of Union City | 3Q 2027 |
Data as of Q2 2026. Source: CoStar. Prepared by the Kidder Mathews Research Group.
ContactGARY BARAGONA |
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