Office Leasing Activity in East Bay, CA Centered Along Interstate 680 South/Livermore Corridor

OAKLAND, CA— Office market fundamentals in the East Bay are expected to soften modestly through the rest of this year as job losses and the housing market downtown weigh on tenant demand, according to a second-quarter Office Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm.

Rents are forecast to remain essentially flat this year, potentially drawing employers with expiring leases in more expensive Bay Area markets to the East Bay.

“Buyers seeking value-add opportunities may look to the Interstate 680 South and Livermore areas, where a rise in leasing activity among technology companies may prompt owners to raise rents closer to market value,” says Jerry Smith, regional manager of the Oakland office of Marcus & Millichap.

Following are some of the most significant aspects of the Oakland Office Research Report:

· Office construction is projected to total 209,000 square feet this year, compared with 74,000 square feet in 2007.
· Vacancy is forecast to finish the year at 14.5 percent.
· Asking rents are projected to rise 0.2 percent to $27.13 per square foot.
· Effective rents will end the year at $23.05 per square foot.
· The median price has appreciated 7 percent year over year to $233 per square foot, indicating the current flight-to-quality sentiment.

For a copy of the complete Oakland Office Research Report, as well as reports on other markets nationwide, visit our website at http://www.marcusmillichap.com/.

Press Contact: Stacey Corso
Communications Department
(925) 953-1716