How PG&E’s relocation into Oakland affects availability in the East Bay
Significant large blocks of space to be released in San Francisco and the East Bay Suburbs
June 23, 2020
Total availability (% of inventory), Q1 2020 vs. Post-PG&E Phase 1 Move-In
Includes both vacant and NOT vacant availabilities
- PG&E recently announced a massive relocation into Oakland, with plans to consolidate offices from San Francisco and the I-680 Corridor into roughly 900,000 square feet beginning in 2023. The move will be done in phases, where PG&E will occupy 700,000 square feet in Phase 1 and gradually occupy the remaining spaces over time.
- PG&E currently occupies 1.4 million square feet in San Francisco and approximately 500,000 square feet in Concord and San Ramon. If only accounting for PG&E’s relocation and no other tenant movement, Oakland’s availability is projected to decrease significantly. When compared to Q1 availabilities, PG&E’s Phase 1 move-in could drop availability rates from 20 percent to approximately 15 percent. At the same time, suburban East Bay will see availabilities increase from 18 percent to approximately 19.5 percent.
- In the wake of the pandemic, companies are beginning to strategize re-entry with employee health and well-being at the forefront. Some companies are looking at a more distributed work model to reduce density in one location, resulting in a potential shift from dense urban cores towards suburban office markets such as the East Bay. PG&E’s move will release significant large blocks of space to the market, and will provide options for companies to expand or relocate to the suburban East Bay.