Q3-2020 I-680 Office Market Statistics

We are quickly approaching the end of 2020 but before we put a wrap on the year, I thought I’d share some quick stats for the third quarter office market. The pandemic has definitely shaped the office market with stay in place orders forcing people to work from home. The result is there are a lot of empty office buildings in the market place. The numbers that I will post here are going to be with a very broad brush and they will give you a high level of what is going on in the I-680 corridor. Please note that if you have a certain parameter that you are looking for then please reach out and let me know as I’m happy to do a custom report for you.

The commentary on the office market is that we aren’t seeing advertised rents dropping much but we are seeing the deal rents (i.e. the negotiated rents) dropping. In addition to the landlords being soft on rents, they are also being generous with free rent and tenant improvements. The other area worth mentioning is the large amount of subleases hitting the market. If you want to find an aggressive deal in today’s market, you may want to look at the subleases to see if you can find one with some term so you aren’t stuck moving again in 24-36 months.

Concord/Pleasant Hill:

• Inventory SF: 7.6M
• 12 Month Net Absorption SF: 32,000sf
• Vacancy Rate: 10.1%
• Market Rent/SF: $2.65 Full Service
• Market Sale Price/SF: $250 psf

Walnut Creek – BART/DT:

• Inventory SF: 8.4M
• 12 Month Net Absorption SF: (299,000)
• Vacancy Rate: 15.3%
• Market Rent/SF: $3.43 Full Service
• Market Sale Price/SF: $328 psf

San Ramon:

• Inventory SF: 2.4M
• 12 Month Net Absorption SF: (77,600)
• Vacancy Rate: 11.1%
• Market Rent/SF: $2.76 Full Service
• Market Sale Price/SF: $283 psf

Bishop Ranch:

• Inventory SF: 7.7M
• 12 Month Net Absorption SF: 232,000
• Vacancy Rate: 11.3%
• Market Rent/SF: $3.12 Full Service
• Market Sale Price/SF: $326 psf

Dublin:

• Inventory SF: 2.8M
• 12 Month Net Absorption SF: 126,000
• Vacancy Rate: 12.8%
• Market Rent/SF: $2.89 Full Service
• Market Sale Price/SF: $304 psf

Pleasanton:

• Inventory SF: 11.3M
• 12 Month Net Absorption SF: (276,000)
• Vacancy Rate: 11.3%
• Market Rent/SF: $2.97 Full Service
• Market Sale Price/SF: $302 psf

Livermore:

• Inventory SF: 2.1M
• 12 Month Net Absorption SF: 61,500
• Vacancy Rate: 11.3%
• Market Rent/SF: $2.62 Full Service
• Market Sale Price/SF: $282 psf

If you have any questions about the market numbers, please don’t hesitate to give me a call at 925-239-1422.