Business Expansion Fuels Growth in East Bay Office Sector

OAKLAND, CA — Despite concerns over the impact of the cooling housing climate on the local economy, the Oakland office market will improve this year, aided by healthy business expansion and a lack of new inventory, according to the 2008 National Office Report by Marcus & Millichap, the nation’s largest real estate investment services firm.

Demand for office space is supported by continued economic growth as well as business relocations from San Francisco. (Night Downtown Oakland photo at left)

Also included in the report is the firm’s annual National Office Index (NOI), a snapshot analysis that ranks 43 office markets based on a series of 12-month forward-looking supply and demand indicators. Oakland moves up two places this year to No. 7. (Downtown aerial photo at left; Lake Merritt photo at right)

“A lack of competition from additional stock, coupled with spillover demand from an increasingly tight and expensive San Francisco market, will continue to drive investors’ interest in East Bay office properties,” says Jerry C. Smith, regional manager of Marcus & Millichap’s Oakland office.

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

· Employers will expand payrolls steadily this year, adding 7,900 positions for 0.7 percent increase.
· Developers will add approximately 200,000 square feet to inventory.
· Vacancy is forecast to decline 80 basis points to 11.4 percent in 2008.
· Asking rents are expected to rise 4.1 percent to $28.19 per square foot, while effective rents advance 5 percent to $24.33 per square foot.
· Investor interest is expected to pick up from properties in the Tri-Valley market.
In the 2008 NOI, Seattle moved up three places to secure the No. 1 spot, surpassing last year’s leader New York City, which slipped to No. 2. Boston moved up two spots to No. 3, while San Francisco jumped 12 places to the No. 4 position. Los Angeles slipped two spots, coming in at No. 5. (Photo of Herethere sculpture on Oakland-Berkeley border at right)

For a copy of Marcus & Millichap’s National Office Report and the complete NOI rankings, visit http://www.marcusmillichap.com/.

CONTACT:

Stacey Corso
Public Relations Manager
Marcus & Millichap
2999 Oak Road
Suite 210
Walnut Creek, CA 94597
Office: 925.953.1716
Mobile: 415.672.6460
Fax: 925.953.1710
http://www.marcusmillichap.com/