Oakland Metropolitan Area Office Equilibrium Continues
The Oakland Metropolitan Area's office market surged forward in the third quarter, as vacancy and asking rates continue to regain momentum throughout the submarkets. The national economic environment remains steady and strong, with Gross Domestic Product (GDP) growth forecasted to settle lower at 4.1 percent for the third quarter, primarily fueled by the effect from tariffs and the waning of the pretariff rush on tariff-targeted commodities. Capital markets continue to set historic records, despite a number of institutional firms turning bearish on the long-term outlook. The shift in Wall Street's ongoing confidence could propel Oakland's Metropolitan commercial real estate market even further, as investors seeking to diversify accept a premium on asking prices in exchange for stable and secure assets. National unemployment dropped from 4.2 percent to 3.7 percent in the third quarter, almost a record low, and a milestone not seen in the modern economy since 1968.
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