Oakland Industrial Market Report

Urban demand growth emerging as an early green shoot. While most submarkets still recorded notable net space relinquishment in 2025, the City of Oakland witnessed four consecutive quarters of positive absorption and vacancy compression, though conditions softened in early 2026. Despite this, the 2025 recovery of this port-adjacent node may signal the initial stages of a broader market inflection, even as the Port of Oakland has maintained largely stable, but not expanding, container throughput amid tariff-related uncertainty. Still, metrowide conditions remain soft, with eight consecutive quarters of net space relinquishment. Weakness is most pronounced along the Interstate 880 and 680 corridors, where a higher concentration of newer, large-format speculative distribution space continues to face leasing challenges. Although more than half of this year’s deliveries remained unleased as of March, forward supply pressure is easing as development starts have largely paused.