January 31, 2024
The San Francisco East Bay retail market exhibited stability, with only a slight decrease in overall vacancy rate to 5.10%. Vacancy has hovered in the 5% range the past 24 months. The inner East Bay Markets of Walnut Creek, Castro Valley, and Pleasanton/Dublin outperforming the rest.
Limited new construction occurred in 2023, contributing to positive
absorption. Without change in vacancy or new inventory, rental rates remained steadfast throughout the year, but landlords did begin offering incentives on spaces that were slow to lease. Most common incentives being free rent and tenant improvement allowances.
Notable lease transactions include Harbor Freight and Planet Fitness in Fremont. Walnut Creek was able to secure the relocation of Terra Outdoor Living on Mount Diablo. Terra will occupy the former Pier One Imports. Regionally, discount retailers had an appetite for the largest spaces. Marshalls and 99 Cent Only both scooping up spaces over 25,000 in El Cerrito and Antioch, respectively.
The capital markets experienced a slowdown throughout Q4, yet there was a
notable surge in closings at December’s end. Uptick in activity indicative of growing investor confidence heading into 2024 and reflects optimism for the region’s retail real estate market. Indepth Capital Markets summary can be found in this article.
Retail & Investment Property Advisor 
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