Oakland Industrial Market Report
2023 Investment Forecast
Tech Innovators and Logistics Firms Compete for Space;
Private Buyers Limit Activity to Proven Locales
Confluence of logistics and manufacturing supports tight operations. The East Bay is set for a sharp rise in supply additions after last year’s near decade-long low, testing the market against an uncertain economic backdrop. Demand for industrial square footage is, nevertheless, robust across the region. Last year, Amazon put four large logistics spaces up for sublease, all of which have been taken off the market as of early 2023. One of these properties, totaling 500,000 square feet, was subleased by home construction tech firm Veev to be re-purposed for production aims, exemplifying tight conditions in that subsector. The metro’s base of high-tech manufacturers will continue to define a substantial portion of leasing activity moving forward, with Rivian Automotive — an electric vehicle firm — slated to occupy roughly 450,000 square feet in Hayward this year. Leasing from both the logistics and manufacturing sides should keep availability well within the sub-5 percent zone for the remainder of 2023.