Net Absorption Positive 65,878 SF in the Quarter
The East Bay/Oakland retail market did not experience much change in market conditions in the second quarter 2013.
The vacancy rate went from 5.0% in the previous quarter to 5.0% in the current quarter. Net absorption was positive 65,878 square feet, and vacant sublease space increased by 11,951 square feet. In first quarter 2013, net absorption was positive 288,791 square feet.
Tenants moving into large blocks of space in 2013 include: Nordstorm Rack moving into 47,000 square feet at 703 Contra Costa Blvd; 24 Hour Fitness moving into 44,656 square feet at 4500 Auto Mall Pky; and 24 Hour Fitness moving into 38,400 square feet at 2800 N Main St.
Quoted rental rates increased from first quarter 2013 levels, ending at $20.94 per square foot per year.
A total of 3 retail buildings with 56,818 square feet of retail space were delivered to the market in the quarter, with 325,175 square feet still under construction at the end of the quarter.
This trend is compared to the U.S. National Retail vacancy rate, which decreased to 6.7% from the previous quarter, with net absorption positive 23.11 million square feet in the second quarter. Average rental rates increased to $14.50 this quarter, and 593 retail buildings delivered to the market totaling almost 9.6 million square feet.