More than one-third of downtown Oakland office space is empty, report says

"Nearly 38% of Oakland's downtown office space was empty in the first quarter of the year, according to a new report from the commercial real estate firm Cushman & Wakefield."

"Oakland's vacancy rate remains stubbornly high six years after the onset of the COVID-19 pandemic, while downtown San Francisco and San Jose hover at 31%."

"The report observes that the Bay Area has experienced continued layoffs in the tech sector, and a failure by the booming AI industry to translate into greater demand for office space in Oakland."

"Looking ahead, these homegrown expansions will be crucial in halting the rise in vacancy, but it will take an in-migration of new, larger tenants for vacancy to decline meaningfully."

Oakland's downtown office vacancy rate hit 38% in early 2023, up from 10.8% in 2019. This trend persists six years post-COVID-19 pandemic. While San Francisco and San Jose's rates decreased slightly, Oakland's increased. Continued tech sector layoffs and a lack of demand from the AI industry contribute to this issue. Some large leases were signed in 2025, indicating potential growth, but major tenants' leases are expiring soon. Homegrown expansions are vital for reducing vacancy rates, but new larger tenants are necessary for significant improvement.

Read at The Oaklandside