Oakland, CA Economic Overview
Located in the East Bay region of San Francisco, Oakland is the 8th-largest city in California, with a population last estimated at 419,267, in 2015. The city is famous for its sustainability practices, which include a top-ranking for its generation of electricity from renewable resources. Oakland is considered to be a politically active city, as well as one that takes pride in its professional sport franchises like the Oakland Raiders, Oakland Athletics, and the Golden State Warriors. Recently, many new start up companies in industries that are considered high tech and green energy have been produced in Oakland, such as Ask.com and Pandora Radio. Oakland was ranked fifth in 2014 for tech entrepreneurs by total venture capital investment. This is good news for the economic prospects of Oakland, as the more industries develop, the higher the need for investment.
The city of Oakland is a major port in the West Coast and it is the fifth busiest port in the U.S., by cargo volume. Around 99% of all containerized goods are handled by the Port of Oakland and it represents $41 billion worth of international trade. Approximately 200,000 jobs are related to marine transportation in the Oakland area. Oakland was considered to be one of the best cities in which to start a career, in 2014, and is ranked fourth in cities with the most professional opportunities.
Oakland, CA Commercial Real Estate Market
As San Francisco reaches max capacity, companies are looking to migrate over to Oakland. Office rent and demand by tech companies to find rent is skyrocketing in San Francisco and it is leading companies to look for affordable rent elsewhere. In fact, some business are finding that it is less expensive to find space in the Oakland commercial real estate market.
Downtown Oakland: Considered to be the Central Business District of the area, Downtown Oakland has a lot to offer. The Downtown Oakland Association is working to revitalize Oakland’s historic downtown and it is looking to create and maintain new public spaces. They are seeking to develop a thriving 24/7 business, retail, entertain, and residential district in the center of Oakland, all of which is good news for commercial development opportunities.
Lake Merritt: The neighborhood of Lake Merritt is a unique urban space. It is home to the first wildlife refuge which was established in 1870 and the Rotary Nature Center. Most investments that come into Lake Merritt are geared towards park spaces and surrounding infrastructure, such as bridges and paved pedestrian paths. That said, the Oakland Planning Commission approved of a 24-story residential tower in 2015, on the east edge of Lake Merritt.
East Oakland: Taking up the second largest portion of land in the city’s area, East Oakland is looking forward to some major development. In mid-2017, the city approved development of a shopping center that will host roughly half a dozen businesses. Promoters of the project say this will benefit the community, particularly youth and the elderly who can’t drive or walk long distances. The city worked to repair other elements of the area, from new sidewalks, gutters, street lamps, and even trees, as part of an effort to revitalize the area. The hope is that when the new retail property is delivered, the community as a whole will change for the. Investing in commercial development within East Oakland could be a game changer for this community especially as the increase in demand for affordable office, retail, and rental space drives the market forward.
Oakland, CA Office Rental Rates ($/SF/year)
Data provided by Yardi Matrix, for properties larger than 50K SF.
Oakland, CA Office Sales
Data provided by Yardi Matrix, for properties larger than 50K SF, which sold at over $5M.
Oakland, CA Commercial Inventory Breakdown
Total: 20,847,860 SF
By square footage range:
- 50k to 100k SF: 2,706,353 SF / 12.98% of total office
- 100k to 500k SF: 9,502,331 SF / 45.58% of total office
- 500k to 1M SF: 7,051,176 SF / 33.82% of total office
- > 1M SF: 1,588,000 SF / 7.62% of total office
- Class A: 10,579,389 SF / 50.75% of total office
- Class B: 6,532,254 SF / 31.33% of total office
Total: 9,300,306 SF
By square footage range:
- 100k to 500k SF: 9,300,306 SF / 100% of total industrial
- Class A: 2,444,550 SF / 26.28% of total industrial
- Class B: 6,231,244 SF / 67% of total industrial
- Class C: 624,512 SF / 6.71% of total industrial
Employment in Oakland, CA
The unemployment rate in Oakland is 5.8%, slightly above the U.S. unemployment rate of 5.2%. Listed below are the top 5 professions represented in the region, along with the percentage of Oakland residents they employ:
- Sales, Office, Administrative Support (22.09%);
- Production, Transportation, Material Moving (17.85%);
- Construction, Extraction, Maintenance/Repair (13.54%);
- Management, Business, Finance (11.48%);
- Food Preparation, Serving (6.02%).
Some of the top employers in Oakland include Kaiser Permanente, Children's Hospital, United Parcel Service, Alameda Health System, and Southwest Airlines.
Education in Oakland, CA
Around 80% of Oakland residents have a high school diploma or equivalent and 39% have a bachelor’s degree or higher. There are 62 colleges within 50 miles of Oakland, including Patten University, Holy Names University, ITT Technical Institute Oakland, Laney College, Mills College, and Merritt College.
Commuting Time in Oakland, CA
The average commute in Oakland is estimated at 25.75 minutes. Approximately 86.06% of commuters travel by way of car and 5.04% of them carpool. Only 0.94% of Oakland residents commute by way of public transportation. However, 2.02% of commuters walk and Oakland was ranked the 5th most walkable city in the U.S.
- Total Population417,442
- Male Population(48.8 %) 203,849
- Female Population(51.2 %) 213,593
- Median Age36.40
- Average Household Income$93,849
- Median Household Income$63,251
- Median Income Under 25$42,646
- Median Income 25-44$70,317
- Median Income 45-64$68,538
- Median Income Over 65$42,824
Residential Rents in Oakland, CA
When choosing the best place for a business, location research is very important – not only for the office, but also for the employees’ convenience.
As is the emerging trend in the U.S. rental market, Oakland’s demand for rental space has increased in the past few years. The average cost for an apartment is $2,220 a month. The average studio apartment is $1,478 a month, for a one bedroom the average is $1,944 a month, and 2-bedrooms go for $3,044 a month. The average size of an apartment in Oakland is 713 square feet. A studio apartment is 544 square feet, a one bedroom is 655 square feet, and a 2 bedroom is 935 square feet.
Oakland, CA Average Rental Price, August 2019
- $ 2,455/mo
- Studio: $ 1,751
- 1 Bedroom: $ 2,226
- 2 Bedrooms: $ 3,177
Oakland, CA Rent Trends
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