Industrial Real Estate Shows Signs of Life in East Oakland

Across the San Francisco Bay Area, the industrial real estate market is beginning to show signs of renewed activity. After an extended period of uncertainty, buyers are stepping back into the market. On the ground, there is a noticeable shift in mindset: people are paying attention again, touring properties, and taking action.

This recovery is being led by the industrial sector, particularly in the East Bay and East Oakland markets. Demand is strongest among owner-users rather than traditional investors. Local manufacturers, contractors, logistics firms, and service-oriented businesses are actively seeking properties that allow them to control their real estate and support long-term operations. These buyers are less focused on market cycles and more focused on stability, efficiency, and location.

East Oakland continues to stand out due to its proximity to the Port of Oakland, major transportation corridors, and the broader Bay Area workforce. While vacancy rates increased over the past year and rental rates softened from historic highs, this adjustment has created a more balanced and realistic market. Well-located, functional industrial buildings—especially small to mid-sized properties—are seeing the most interest and are the first to move.

Investor activity, particularly from institutional capital, remains cautious. Large warehouse and big-box industrial product has been slower to lease and trade, keeping many investors on the sidelines. In contrast, owner-users are capitalizing on current pricing and reduced competition, moving decisively when the right opportunity becomes available.

With limited new industrial construction underway, supply remains constrained. If buyer activity continues to build, the market could tighten quickly. For those prepared to act, early 2026 represents a window of opportunity—especially in East Oakland—where real demand is re-emerging and fundamentals remain strong.