The retail market is built on a mixture of both national retailers and local artisanal businesses. Oakland offers a blend of existing centers and new developments comprised of multiple shopping and dining districts that provide consumers with a broad shopping experience.
The retail landscape here is home to some of the Bay Area’s elite restaurants, shopping and entertainment venues. Urban in nature, but low-rise in scale, the retail streets and shopping districts are a cross between San Francisco’s urban towers and the sprawling, suburban centers of the East Bay, according to John Cumbelich & Associates, partner of X Team International.
Stimulated by an influx of new residents, tech firms and employment in the post-recession recovery, Oakland’s retail real estate market has achieved historic occupancy levels and record rental rates in recent years. And, there are plans to redevelop the 380,000-square-foot former Sears building to create UBER’s new downtown office as well as a proposed development that will include 800,000 square feet of commercial space, 400,000 square feet of residential space and 85,000 square feet of retail there.
In the fourth quarter of 2016, occupancy levels were nearly at 100% for the Oakland outlying submarkets including Grand Lake, Rockridge and Montclair Village, and rivaling the East Bay’s premier retail districts, says Cumbelich. The breakdown includes 99.51% in Grand Lake, 99.08% in Rockridge and 98.14% in Montclair Village—a total that is unsurpassed by any other Bay Area submarket, GlobeSt.com learns. These occupancy rates, the highest in the East Bay, outperformed Walnut Creek, Lafayette, Pleasant Hill and Danville again in the fourth quarter.
The 326,313 square feet of prime retail space in the Grand Lake district remains near total occupancy, achieving a level of 99.51%. Although occupancy remains high, Grand Lake experienced a slight decrease dropping from 99.85% to 99.51%.
The Rockridge district, stretching along College Avenue between Alcatraz Avenue and Broadway, also completed the period at near full occupancy. College Avenue achieved an occupancy rate of 99.08%, achieving the highest occupancy of any Oakland submarket.
One of Oakland’s historic retail districts catering to the affluent Piedmont and Montclair neighborhoods, Montclair Village remained at a high occupancy with a fourth quarter rate of 98.14%. Activity during the quarter remained quiet in Montclair Village, with zero new vacancies coming to market.
At the beginning of fourth quarter 2016, there were more than 2,000 new residential units being developed in Oakland, with another 18,000 residential and multifamily units in the city’s pipeline, according to Cumbelich.
Read the original article in GlobeSt.