OAKLAND, CA — Historically high occupancy levels in the East Bay retail sector have been tested by wavering economic conditions during the last year, according to a third-quarter Retail Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm. In 2008, area owners will likely forego significant rent gains in order to retain tenants and keep the metrowide vacancy rate among the lowest in the nation.
“Investor interest in the Oakland retail market will persist, although trading will likely be more reserved through the end of the year as lenders approach deals with intensified scrutiny
,” says Jerry Smith, regional manager of the Oakland office of Marcus & Millichap. Following are some of the most significant aspects of the Oakland Retail Research Report:
· Developers are forecast to bring approximately 1 million square feet of retail space online in 2008, up from 860,000 square feet last year.
· Vacancy is projected to rise 140 basis points to a still-tight 3.4 percent.
· Asking rents are predicted to increase 0.5 percent to $29.24 per square foot.
· Effective rents will dip 1.2 percent to $26.40 per square foot.
· Local employers are forecast to eliminate 210,000 jobs this year for a 2 percent contraction.
For a copy of the complete Oakland Retail 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
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