Market Updates: Industrial

Oakland’s manufacturing belt stretches from the Oakland International Airport to the Port of Oakland. Covering more than 5,000 acres of strategically located real estate, the area contains more than 24 million square feet of manufacturing, warehouse, and distribution facilities.

Grubb & Ellis ranked the Oakland area 7th in its U.S. Industrial Market Strength Forecast for 2008-2012.

"Oakland-East Bay has been spared the collapse of Silicon Valley thanks to its balanced tenant mix and lower costs." -Grubb & Ellis, Industrial Market Trends, Spring 2002

Manufacturing
• 4.4% Vacancy Rate
• $0.43 Average Asking Rate (NNN)

Source: NAI/BT Commercial, Manufacturing Report, Q4 2007

Warehouse
• 1.7% Vacancy Rate

• $0.43 Average Asking Rate (NNN)
Source: NAI/BT Commercial, Industrial Report, Q4 2007

"Tenants’ need for speed is also affecting the locational choices of industrial buildings. Because transportation access is critical, tenants are increasingly favoring densely populated regional hub markets such as Chicago, Oakland and Atlanta." -Real Estate Portfolio, National Association of Real Estate Investment Trusts (NAREIT), January/February 2001.

Oakland was identified as the second least risky market in the United States for Industrial development during a recessionary market. Principal Capital, Real Estate Report, 4th Quarter 2001. Industrial investment is picking up with anticipation of new markets for niche food production, custom production and assembly and trade-related activities.

The City has developed an innovative set of resources and tools to enable brownfields reutilization, which will add even more developable land to Oakland’s stock.

Available Real Estate

For a list of available industrial real estate, please contact the Business Development staff or visit www.oaklandexplorer.com.