Oakland (East Bay) Commercial Office Space for Rent

Q3 2026

Q3 2026 Oakland / East Bay Commercial Real Estate Market Report

Focus: Q3 2026 Market Trends

Executive Summary

The Oakland and East Bay market is splitting by property type. Office continues to work through elevated vacancy, industrial improved in Q3 with strong absorption, retail softened modestly, and apartments are recovering. Tenant demand on TenantBase shifted dramatically toward office: office space accounted for 42.9% of all East Bay tenant searches in Q3, up from just 3.5% in Q2.

Sector Snapshot

  • Office: Tenant-favorable. Direct vacancy was 14.3% in Q2, with asking rents down 8.7% year over year, while office searches on TenantBase surged.
  • Industrial: Improving. Direct vacancy fell to 8.3% in Q3 on 667,241 SF of positive absorption.
  • Retail: Softening. Vacancy rose to 5.7% in Q2, and retail remains the largest TenantBase search category at 54.8%.
  • Multifamily: Recovering. Oakland-Berkeley led the metro in rent growth and vacancy improvement.

Oakland / East Bay Tenant Demand Index

The TenantBase Tenant Demand Index tracks what businesses across Alameda and Contra Costa counties are actively searching for on the TenantBase platform each quarter. Because it measures tenant intent before leases are signed, it shows where demand is heading ahead of traditional vacancy and absorption data.

Q3 2026 Search Share by Space Type (July 1 to September 30, 2026)

  • Retail/Storefront: 54.8%
  • Office: 42.9%
  • Warehouse/Industrial: 2.4%

Three-Quarter Trend

  • Retail/Storefront: 57.2% in Q1, 62.4% in Q2, 54.8% in Q3
  • Office: 3.2% in Q1, 3.5% in Q2, 42.9% in Q3
  • Warehouse/Industrial: 39.7% in Q1, 34.1% in Q2, 2.4% in Q3

Key Takeaways

  • Office demand jumped more than twelvefold, from 3.5% to 42.9% of East Bay searches, after staying below 4% in both Q1 and Q2.
  • Retail remains the East Bay's anchor category, holding above 54% of searches in every quarter of 2026.
  • Retail tenants are splitting between short and long terms. Retail searches for terms under one year rose from 9.0% in Q2 to 35.0% in Q3, while 5+ year searches held at 30.0%.
  • Industrial searches fell sharply, from 34.1% to 2.4% of searches, even as the industrial market posted strong Q3 absorption.

Office Market

East Bay office conditions remained tenant-favorable in Q2 2026, the most recent quarter with published metro data, with vacancy rising and rents falling.

Key Metrics (Q2 2026)

  • Direct vacancy: 14.3%, up 180 basis points year over year, with total vacancy at 15.7% (Kidder Mathews)
  • Average direct asking rent: $3.55/SF per month, down 8.7% year over year (Kidder Mathews)
  • Oakland CBD: 20.2% direct vacancy at $3.69/SF per month (Kidder Mathews)
  • By class: Class A direct vacancy of 24.0% versus 6.6% for Class C (Kidder Mathews)
  • Under construction: 383,000 SF at The Union 1.2 in Union City, due 3Q 2027 (Kidder Mathews)

TenantBase Office Activity

Demand share: 42.9% of East Bay tenant searches, up from 3.5% in Q2 and 3.2% in Q1.

Lease term preferences:

  • Less than one year: 61.1%
  • 3 to 5 years: 16.7%
  • 2 to 3 years: 11.1%
  • 5+ years: 11.1%

Space requirements by term:

  • Less than one year: 625 to 1,375 SF
  • 2 to 5 years: 500 to 1,000 SF
  • 5+ years: 2,500 to 5,000 SF

Top locations: Downtown Oakland was the most requested area across all space types in Q3, both on its own and in multi-area searches. Hayward, Concord, Walnut Creek, San Leandro, Oakland Airport, and Danville/Alamo followed.

TenantBase data vs. the market: East Bay office searches on TenantBase are dominated by small users seeking under 1,500 SF on short terms. In a market with 20.2% direct vacancy in the Oakland CBD and Class A vacancy at 24.0%, these tenants hold significant leverage. Small users searching Downtown Oakland are in a strong position to negotiate for Class A space, while tenants committing to 5+ years are best positioned to secure concessions and buildout.

Industrial & Warehouse Market

East Bay industrial improved in Q3 2026, with vacancy falling and the strongest quarterly absorption of the year.

Key Metrics (Q3 2026)

  • Direct vacancy: 8.3%, down from 8.7% in Q2 (Kidder Mathews)
  • Availability: 10.8%, down from 11.3% in Q2 (Kidder Mathews)
  • Q3 direct net absorption: positive 667,241 SF (Kidder Mathews)
  • Average asking rent: $1.60/SF per month, down 3.6% year over year (Kidder Mathews)
  • Largest lease: Quanta Services, 200,000 SF at 8311 Central Ave in Newark (Kidder Mathews)

TenantBase Industrial Activity

Demand share: 2.4% of East Bay tenant searches, down from 34.1% in Q2 and 39.7% in Q1. The industrial searches recorded in Q3 sought about 10,000 to 11,000 SF.

TenantBase data vs. the market: Small and mid-size industrial searches slowed in Q3 while large users drove absorption. With rents down year over year and availability above 10%, industrial tenants still have room to negotiate.

Retail Market

Key Metrics (Q2 2026)

  • Vacancy: 5.7%, up 40 basis points year over year (Kidder Mathews)
  • Average asking rent: $2.38/SF per month, down 2.32% year over year (Kidder Mathews)
  • Under construction: 73,401 SF, down 49.86% year over year (Kidder Mathews)
  • Notable lease: Nola's Daiquiri Bar & Kitchen, 5,000 SF at Tribune Tower in Downtown Oakland (Kidder Mathews)

TenantBase Retail Activity

Demand share: 54.8% of East Bay tenant searches, the largest category for the third straight quarter.

Lease term preferences:

  • Less than one year: 35.0%
  • 5+ years: 30.0%
  • 3 to 5 years: 20.0%
  • 2 to 3 years: 10.0%
  • 1 to 2 years: 5.0%

Space requirements: Retail tenants seeking 5+ year terms averaged 500 to 1,000 SF.

TenantBase data vs. the market: East Bay retail demand on TenantBase is concentrated in small storefronts, with tenants split between flexible short-term searches and long-term commitments. With retail rents slipping and almost no new construction, small-format tenants can find options in existing centers, particularly in Downtown Oakland where new food and beverage concepts are signing.

Multifamily Market

Oakland-Berkeley posted the largest vacancy improvement in the metro, down 200 basis points in the 12 months ended March, along with the metro's highest rent growth at 4.2%, according to Marcus & Millichap. Net absorption is outpacing deliveries in 2026 as the construction pipeline eases.

Q4 2026 Outlook

  • Office: Expect tenant-favorable conditions to continue, with rising small-suite demand from TenantBase searches supporting leasing in Downtown Oakland.
  • Industrial: Expect gradual improvement as availability continues to tighten.
  • Retail: Expect stable conditions with limited new supply.
  • Multifamily: Expect continued recovery as absorption outpaces deliveries.

Frequently Asked Questions

What type of commercial space are East Bay tenants searching for in 2026?

In Q3 2026, retail/storefront space made up 54.8% of Oakland and East Bay tenant searches on TenantBase, followed by office at 42.9% and warehouse/industrial at 2.4%. Office share rose from 3.5% in Q2.

Which East Bay areas are tenants searching most?

Downtown Oakland was the most requested area on TenantBase in Q3 2026, followed by Hayward, Concord, Walnut Creek, and San Leandro.

What lease terms do East Bay office tenants want?

61.1% of East Bay office tenants on TenantBase sought terms under one year in Q3 2026, and 27.8% sought terms of 3 years or longer.

What is the office vacancy rate in Oakland and the East Bay?

East Bay office direct vacancy was 14.3% in Q2 2026, with the Oakland CBD at 20.2% and average asking rents down 8.7% year over year to $3.55/SF per month, according to Kidder Mathews.

What is the industrial vacancy rate in the East Bay?

East Bay industrial direct vacancy was 8.3% in Q3 2026, down from 8.7% in Q2, according to Kidder Mathews.

How can I find commercial space in Oakland and the East Bay at no cost?

TenantBase matches business tenants with vetted independent tenant rep brokers across Oakland and the East Bay at no cost to the tenant. Brokers are compensated by the landlord. Get started with TenantBase.

Sources

  1. TenantBase proprietary search data, Oakland / East Bay, July 1 to September 30, 2026
  2. TenantBase, Oakland (East Bay) Commercial Real Estate Market Report, Q2 2026
  3. TenantBase, Oakland (East Bay) Commercial Real Estate Market Report, Q1 2026
  4. Kidder Mathews, East Bay Office Market Report, Q2 2026
  5. Kidder Mathews, Oakland/East Bay Industrial Market Report, Q3 2026
  6. Kidder Mathews, East Bay Retail Market Report, Q2 2026
  7. Marcus & Millichap, Oakland Multifamily Market Report, 2Q 2026

Disclaimer

Information in this report is aggregated from third-party sources and TenantBase proprietary platform data, and was synthesized with the assistance of AI. Market metrics reflect the most recent published data available at the time of writing. TenantBase search data reflects tenant activity on the TenantBase platform and is not a measure of total market leasing. All figures should be independently verified before making real estate decisions.