East Bay Office Vacancies Decrease In First Quarter 2014

The East Bay market ended the first quarter of 2014 with an office vacancy rate of 10.6%, according to the CoStar Group.  San Francisco, which usually leads the nation in lowest vacancy rate, came in at 9.2%.  This continues a trend we have seen over the last several quarters but certainly not at the pace that led to vacancy rates in the 8’s in the late 90’s.

market trends

To give you an idea of how this compares, the national vacancy rate was 11.5%.  LinkedIn just inked a lease for 450,000 sq ft in San Francisco and is indicative of the confidence factor we’re seeing with many Bay Area companies.  As companies are growing and expanding that means they feel profitable enough to hire more people.  That is certainly good news for the local office markets.