While San Francisco and Oakland are the primary hotbeds for commercial real estate activity, the North I-680 Corridor’s demand for Class A office investments remains strong. Vacancy has hovered to 14.0 percent, an increase of 3.1 percent from the year prior. Although the vacancy rate is gradually increasing, rental rates are undeterred and continue to push higher.
Rents remain strong along the North I-680 Corridor. Class A rents are at $3.25 per square foot, from $3.19 the previous year. Class B rents have increased to $2.25 per square foot, an increase from $2.19 over the same period. Overall average asking rents increased to $2.78 per square foot, an increase of $0.23 year over year. With Class A rents and Class B rents having an average difference of $1.00 per square foot, it’s no surprise that the Class A inventory had the most negative absorption.
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