Oakland/East Bay Retail Market Report

The following reflects East Bay retail market conditions as of Q2 2026.

The East Bay retail market in Q2 2026 showed softening fundamentals, with vacancy rising year-over-year and asking rents edging lower, while negative net absorption reflected ongoing demand challenges across the region. Explore our full East Bay retail market report for deeper insights into leasing activity, investment performance, and development trends.

Frequently Asked Questions

How is the East Bay retail market performing in Q2 2026?

The East Bay retail market showed softening in Q2 2026. The vacancy rate rose to 5.7%, up 40 basis points from 5.3% a year earlier, while average asking rents declined 2.32% to $2.38/SF/year. Net absorption was -158,126 SF for the quarter, indicating that more space was vacated than leased. (Data source: CoStar; compiled by the Kidder Mathews Research Group.)

What is the East Bay retail vacancy rate in Q2 2026?

The East Bay retail vacancy rate is 5.7% in Q2 2026, according to Kidder Mathews research. This is up 20 basis points from 5.5% in Q1 2026 and up 40 basis points from 5.3% in Q2 2025. The year-over-year trend reflects a gradual loosening of the East Bay retail market. (Data source: CoStar.)

Why is East Bay retail vacancy rising in 2026?

East Bay retail vacancy is rising primarily because net absorption is negative, meaning tenants are vacating more space than they are leasing. Net absorption for Q2 2026 was -158,126 SF, and year-to-date 2026 absorption stands at -99,290 SF. With no new construction delivered in Q2 2026, the vacancy increase reflects occupancy losses rather than new supply additions. (Data source: CoStar; compiled by the Kidder Mathews Research Group.)

What are average asking rents for East Bay retail space in Q2 2026?

Average asking rents for East Bay retail space are $2.38/SF/year in Q2 2026, according to Kidder Mathews research. This is down 2.32% from $2.44/SF/year in both Q1 2026 and Q2 2025. The declining rent trend aligns with rising vacancy across the East Bay. (Data source: CoStar.)

What is net absorption for East Bay retail in Q2 2026?

Net absorption for East Bay retail was -158,126 SF in Q2 2026, meaning occupiers vacated significantly more space than they leased during the quarter. Year-to-date 2026 net absorption stands at -99,290 SF, compared to -103,866 SF through the same period in 2025, indicating demand conditions remain similarly challenged. Negative net absorption is a primary driver of the market’s rising vacancy rate. (Data source: CoStar; compiled by the Kidder Mathews Research Group.)

How much retail space is under construction in the East Bay in Q2 2026?

There is 73,401 SF of retail space under construction in the East Bay as of Q2 2026, according to Kidder Mathews research. This is down 49.86% from 146,386 SF under construction in Q2 2025. No new retail space was delivered in Q2 2026, though 7,350 SF was delivered year-to-date in 2026. (Data source: CoStar.)

What retail construction projects are underway in the East Bay in 2026?

Three notable retail projects are under construction in the East Bay as of Q2 2026. The Bay Area Animal Resource Center (BAARC), a 35,835 SF project in Berkeley, is scheduled for delivery in Q1 2027. Brickyard, a 16,335 SF project in Livermore, is targeted for Q3 2026. Delta Gateway – Building C, an 11,000 SF project in Antioch/Pittsburg, is expected in Q1 2027. (Data source: CoStar; compiled by the Kidder Mathews Research Group.)

What were the largest retail lease transactions in the East Bay in Q2 2026?

The three largest retail lease transactions in the East Bay in Q2 2026 were concentrated in the Antioch/Pittsburg and Oakland-Downtown submarkets. Party Teller signed a 12,000 SF lease at Sand Creek Crossing in Antioch/Pittsburg in May 2026. Nola’s Daiquiri Bar & Kitchen leased 5,000 SF at Tribune Tower in Oakland-Downtown in April 2026. Five and Dime leased 4,850 SF at 329 14th Street in Oakland-Downtown in May 2026. (Data source: CoStar; compiled by the Kidder Mathews Research Group.)

What were the largest retail sale transactions in the East Bay in Q2 2026?

The three largest retail sale transactions in the East Bay in Q2 2026 spanned three submarkets. Bay West Development acquired Gateway Centre, a 112,553 SF property in San Ramon, from Perform Properties for $47,825,001 ($424.91/SF). AmCap purchased a Trader Joe’s property (27,090 SF) in the Walnut Creek-BART/Downtown submarket from Loja Group for $22,074,000 ($814.84/SF). Nazish Hussain acquired 3500 Camino Tassajara, a 2,991 SF property in Danville/Alamo, from Misson Hakam for $8,760,000 ($2,928.79/SF). (Data source: CoStar; compiled by the Kidder Mathews Research Group.)

What are average retail sale prices and cap rates in the East Bay in Q2 2026?

The average retail sale price in the East Bay is $383/SF in Q2 2026, down 15.14% from $451/SF in Q2 2025, according to Kidder Mathews research. The average cap rate is 7.0%, up 30 basis points from 6.7% in Q2 2025 and up from 6.1% in Q1 2026. Rising cap rates alongside falling sale prices indicate investors are pricing in greater risk compared to a year ago. (Data source: CoStar.)

What is the market outlook for East Bay retail in 2026?

The near-term outlook for East Bay retail remains cautious. Vacancy has risen 40 basis points year-over-year, asking rents have declined, and net absorption has been negative for consecutive periods. The construction pipeline has contracted by nearly 50% from a year ago, limiting future supply additions. Investment activity continues, as evidenced by three significant sale transactions in Q2 2026, though average sale prices have declined 15.14% year-over-year. (Data source: CoStar; compiled by the Kidder Mathews Research Group.)

Last updated: Q2 2026. Data source: CoStar. Compiled by the Kidder Mathews Research Group.

Q2 2026 East Bay Retail Market: Key Data Points

Explore our full East Bay retail market review for deeper insights into leasing trends, sale activity, and submarket performance.

• Vacancy Rate Edges Higher: The East Bay retail vacancy rate reached 5.7% in Q2 2026, up 40 basis points year-over-year from 5.3% in Q2 2025, as negative net absorption outpaced any new supply additions.
• Asking Rents Decline: Average asking rents fell to $2.38/SF/year in Q2 2026, a 2.32% decrease from $2.44/SF/year recorded in Q2 2025.
• Net Absorption Remains Negative: Net absorption was -158,126 SF in Q2 2026, bringing the year-to-date total to -99,290 SF, reflecting continued challenges in tenant demand across the market.
• Construction Pipeline Contracts Sharply: Retail space under construction totaled 73,401 SF in Q2 2026, down 49.86% from 146,386 SF a year earlier, with no new deliveries in the quarter.
• Investment Pricing Pulls Back: Average retail sale prices declined to $383/SF, a 15.14% decrease from $451/SF in Q2 2025, while the average cap rate rose 30 basis points to 7.0%.
• Largest Sale: Gateway Centre, San Ramon: Bay West Development acquired Gateway Centre (112,553 SF) in San Ramon from Perform Properties for $47,825,001 ($424.91/SF), the largest retail sale transaction in the East Bay in Q2 2026.

Significant Sale Transactions Q2 2026

Significant Lease Transactions Q2 2026

Significant Under Construction