The following reflects East Bay office market conditions as of Q3 2026.
The East Bay office market in Q3 2026 experienced rising vacancy, declining net absorption, falling rental rates, and lower construction deliveries year over year. Explore our full East Bay office market report for deeper insights into leasing trends, sale activity, and submarket performance.
Frequently Asked Questions
What is the East Bay office vacancy rate in Q3 2026?
The East Bay office direct vacancy rate was 14.7% in Q3 2026, according to Kidder Mathews research. That is up from 14.6% in Q2 2026 and 13.1% in Q3 2025, a year-over-year increase of 160 basis points. The total vacancy rate stood at 16.1% across 54,477,047 square feet of inventory (Data source: CoStar).
What is the East Bay office availability rate in Q3 2026?
The East Bay office availability rate was 18.8% in Q3 2026, up from 17.9% in Q2 2026 and 17.0% in Q3 2025, according to Kidder Mathews research. The year-over-year increase was 180 basis points. Availability was highest in Oakland Downtown at 25.0% (Data source: CoStar).
What are average office asking rents in the East Bay in Q3 2026?
The average direct asking office rent in the East Bay was $3.41 per square foot per month in Q3 2026, unchanged from Q2 2026 and down 13.0% from $3.92 in Q3 2025, according to Kidder Mathews research. Submarket rents ranged from $2.15 in Hayward to $4.48 in Emeryville. Oakland Downtown averaged $3.70 and Berkeley averaged $3.28 (Data source: CoStar).
Which East Bay submarkets have the highest and lowest office vacancy in Q3 2026?
Oakland Downtown had the highest East Bay office direct vacancy rate in Q3 2026 at 20.7%, followed by Oakland – Jack London Square and Emeryville at 19.1% each, according to Kidder Mathews research. The lowest rates were in San Lorenzo at 0.0% (on 20,453 square feet of inventory) and San Pablo at 1.2%. The Oakland CBD, which combines Oakland Downtown and Jack London Square, had a direct vacancy rate of 20.6% (Data source: CoStar).
What was East Bay office net absorption in Q3 2026?
East Bay office net absorption was negative 84,429 square feet in Q3 2026, bringing the year-to-date total to negative 311,712 square feet, according to Kidder Mathews research. Net absorption measures the change in occupied space, so a negative figure means more space was vacated than was newly occupied. For comparison, year-to-date net absorption in 2025 was positive 7,392 square feet (Data source: CoStar).
How much office space was leased in the East Bay in Q3 2026?
Office leasing activity in the East Bay totaled 203,294 square feet in Q3 2026 and 918,441 square feet year to date, according to Kidder Mathews research. Year-to-date leasing was down 34.2% from 1,396,333 square feet in the same period of 2025. Oakland led submarkets with 101,606 square feet leased in the quarter, followed by Berkeley with 64,579 square feet (Data source: CoStar).
How much new office space is under construction in the East Bay in Q3 2026?
No East Bay office space was under construction at the end of Q3 2026, according to Kidder Mathews research. Under-construction square footage was also zero in Q2 2026, compared with 56,176 square feet in Q3 2025. There were no construction deliveries in Q3 2026 or year to date, versus 56,176 square feet delivered in the first three quarters of 2025 (Data source: CoStar).
What was the largest East Bay office sale in Q3 2026?
The largest East Bay office sale in Q3 2026 was EmeryTech Centre in Emeryville, which Cannae Partners bought from Perform Properties for $55,500,000, or $247.59 per square foot, according to Kidder Mathews research. The property totals 224,160 square feet. Other notable sales were Berkeley Crossing in Berkeley at $12,000,000 ($103.87 per square foot) and The Promenade in Berkeley at $10,000,000 ($127.41 per square foot) (Data source: CoStar).
How much East Bay office space sold in Q3 2026?
East Bay office sales totaled 646,148 square feet in Q3 2026 and 1,102,495 square feet year to date, according to Kidder Mathews research. Year-to-date sold square footage was down 61.9% from 2,894,871 square feet in the same period of 2025 (Data source: CoStar).
What was the largest East Bay office lease in Q3 2026?
The largest East Bay office lease of Q3 2026 was Amprius’s 51,000-square-foot lease at 1000-1180 Page Ave in Fremont, signed in August 2026, according to Kidder Mathews research. The landlord was Peninsula Land & Capital. The next largest were Alameda County of Education at 4215 Foothill Blvd in the Airport submarket (18,000 square feet) and Vigilent at 2001-2015 Broadway in Downtown Oakland (10,000 square feet) (Data source: CoStar).
How do Class A, B, and C East Bay office buildings compare in Q3 2026?
Class A East Bay office space had a 26.0% direct vacancy rate and a $4.21 per square foot per month direct rental rate in Q3 2026, compared with 13.4% and $2.92 for Class B and 6.2% and $2.87 for Class C, according to Kidder Mathews research. Class A net absorption was negative 255,397 square feet in the quarter, while Class B was positive 149,122 square feet and Class C was positive 21,846 square feet (Data source: CoStar).
What is the outlook for the East Bay office market after Q3 2026?
Q3 2026 indicators show an East Bay office market still under pressure, according to Kidder Mathews research. Direct vacancy rose to 14.7%, year-to-date net absorption was negative 311,712 square feet, and asking rents were down 13.0% year over year. With no space under construction, new supply is not adding to vacancy in the near term (Data source: CoStar).
Last updated: Q3 2026. Data source: CoStar. Compiled by the Kidder Mathews Research Group.
Q3 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.
- Direct vacancy rate: East Bay office direct vacancy was 14.7% in Q3 2026, up 160 basis points from 13.1% a year earlier. The total vacancy rate was 16.1%.
- Availability rate: Availability rose to 18.8% from 17.9% in Q2 2026 and 17.0% in Q3 2025, an increase of 180 basis points year over year.
- Asking rents: The direct asking rent averaged $3.41 per square foot per month, flat quarter over quarter and down 13.0% from $3.92 in Q3 2025.
- Net absorption: Net absorption was negative 84,429 square feet in Q3 2026 and negative 311,712 square feet year to date, versus positive 7,392 square feet in the first three quarters of 2025.
- Leasing and sales volume: Leased square footage reached 203,294 in Q3 2026 and 918,441 year to date (down 34.2% year over year), while sold square footage totaled 646,148 in the quarter and 1,102,495 year to date (down 61.9%).
- Largest sale: EmeryTech Centre in Emeryville sold for $55,500,000 ($247.59 per square foot) to Cannae Partners, the biggest East Bay office sale of the quarter.
- Construction: No office space was under construction and no space was delivered in Q3 2026, compared with 56,176 square feet under construction and delivered in 2025.
Submarket Statistics
| Submarket | Total Inventory (SF) |
Direct Vacancy Rate |
Total Vacancy Rate |
3Q26 Total Net Absorption (SF) |
YTD Total Net Absorption (SF) |
3Q26 Leasing Activity (SF) |
YTD Leasing Activity (SF) |
Direct Rental Rate |
|---|
| Submarket | Total Inventory (SF) | Direct Vacancy Rate | Total Vacancy Rate | 3Q26 Total Net Absorption (SF) | YTD Total Net Absorption (SF) | 3Q26 Leasing Activity (SF) | YTD Leasing Activity (SF) | Direct Rental Rate |
|---|---|---|---|---|---|---|---|---|
| Oakland Downtown | 20,706,447 | 20.7% | 21.9% | -32,145 | -28,703 | 61,830 | 381,589 | $3.70 |
| Oakland – Jack London Square | 1,375,071 | 19.1% | 19.1% | -9,249 | -43,322 | 6,946 | 16,110 | $3.10 |
| Oakland CBD Total | 22,081,518 | 20.6% | 21.7% | -41,394 | -72,025 | 68,776 | 397,699 | $3.66 |
| Submarket | Total Inventory (SF) | Direct Vacancy Rate | Total Vacancy Rate | 3Q26 Total Net Absorption (SF) | YTD Total Net Absorption (SF) | 3Q26 Leasing Activity (SF) | YTD Leasing Activity (SF) | Direct Rental Rate |
|---|---|---|---|---|---|---|---|---|
| Alameda | 4,224,869 | 8.7% | 11.1% | -14,616 | -133,695 | 0 | 129,522 | $3.01 |
| Albany | 163,813 | 3.4% | 3.4% | -272 | 2,289 | 1,014 | 6,417 | $2.72 |
| Berkeley | 5,860,277 | 12.1% | 15.0% | -18,385 | -74,845 | 64,579 | 126,935 | $3.28 |
| Castro Valley | 530,056 | 2.4% | 2.4% | -291 | -4,517 | 1,293 | 2,433 | $3.33 |
| El Cerrito | 184,724 | 5.2% | 5.2% | 9,392 | 6,892 | 4,640 | 4,640 | $3.65 |
| Emeryville | 5,550,604 | 19.1% | 22.4% | -20,764 | -25,326 | 25,538 | 83,988 | $4.48 |
| Hayward | 2,787,884 | 4.8% | 4.9% | -4,684 | 9,530 | 2,298 | 17,622 | $2.15 |
| Oakland | 30,274,152 | 17.6% | 18.6% | -11,630 | -77,545 | 101,606 | 530,035 | $3.58 |
| Richmond | 1,907,457 | 11.0% | 11.0% | -28,354 | -22,696 | 0 | 4,325 | $2.27 |
| San Leandro | 2,162,470 | 7.0% | 7.0% | 6,089 | 40,536 | 2,326 | 12,524 | $2.63 |
| San Lorenzo | 20,453 | 0.0% | 0.0% | 0 | 0 | 0 | 0 | N/A |
| San Pablo | 271,580 | 1.2% | 1.2% | -914 | -614 | 0 | 0 | $2.00 |
| Union City | 538,708 | 3.3% | 6.3% | 0 | -31,721 | 0 | 0 | $2.50 |
| Submarket | Total Inventory (SF) | Direct Vacancy Rate | Total Vacancy Rate | 3Q26 Total Net Absorption (SF) | YTD Total Net Absorption (SF) | 3Q26 Leasing Activity (SF) | YTD Leasing Activity (SF) | Direct Rental Rate |
|---|---|---|---|---|---|---|---|---|
| Total | 54,477,047 | 14.7% | 16.1% | -84,429 | -311,712 | 203,294 | 918,441 | $3.41 |
| Submarket | Total Inventory (SF) | Direct Vacancy Rate | Total Vacancy Rate | 3Q26 Total Net Absorption (SF) | YTD Total Net Absorption (SF) | 3Q26 Leasing Activity (SF) | YTD Leasing Activity (SF) | Direct Rental Rate |
|---|---|---|---|---|---|---|---|---|
| Class A | 13,058,690 | 26.0% | 28.8% | -255,397 | -403,303 | 45,034 | 225,705 | $4.21 |
| Class B | 28,448,996 | 13.4% | 14.5% | 149,122 | 138,271 | 109,665 | 540,282 | $2.92 |
| Class C | 12,969,361 | 6.2% | 6.9% | 21,846 | -46,680 | 48,595 | 152,454 | $2.87 |
Significant Sale Transactions 3Q26
| Property | Submarket | SF | Sale Price | $/SF | Buyer | Seller |
|---|---|---|---|---|---|---|
| EmeryTech Centre | Emeryville | 224,160 | $55,500,000 | $247.59 | Cannae Partners | Perform Properties |
| Berkeley Crossing | Berkeley | 115,526 | $12,000,000 | $103.87 | TMG Partners | B3 Investors | University of California, Berkeley |
| The Promenade | Berkeley | 78,489 | $10,000,000 | $127.41 | Frontline Realty Capital | Graham Street Realty |
Significant Lease Transactions 3Q26
| Property | Submarket | SF | Transaction Date | Landlord | Tenant |
|---|---|---|---|---|---|
| 1000-1180 Page Ave | Fremont | 51,000 | August 2026 | Peninsula Land & Capital | Amprius |
| 4215 Foothill Blvd | Airport | 18,000 | September 2026 | Singa Development, LLC | Alameda County of Education |
| 2001-2015 Broadway | Downtown | 10,000 | September 2026 | I-Magnin, LLC | Vigilent |
Data as of Q3 2026. Source: CoStar. Prepared by the Kidder Mathews Research Group.
ContactGARY BARAGONA |
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