Berkeley, CA - Office Market Overview
The Berkeley real estate market includes the Downtown, Elmwood, and South Berkeley commercial real estate submarkets. With a population of just over 120,000 residents, Berkeley is also part of the larger Oakland metropolitan region, which is home to almost 2.8 million people, and helps generate a robust demand for office space in the Berkeley area.
As of mid-2017, the Berkeley office market encompasses nearly 1.5 million square feet of existing office space in properties larger than 50,000 square feet. The commercial real estate market in Berkeley sees consistent demand from a variety of tenants, especially those in the education and research & development fields.
Berkeley, CA - Office Inventory Description
Home to the oldest campus in the University of California system, the UC - Berkeley, along with the prestigious Lawrence Berkeley National Laboratory, significantly contribute to the demand for office space in Berkeley. The office inventory in Berkeley offers something for practically any type of business, large or small. There is nearly 191,000 square feet of Class A or A+ office product in the city, with Class B office space accounting for over 1 million square feet, and Class C office space amounting to over 260,000 square feet of the total office inventory in Berkeley.
The Downtown Berkeley office submarket is one of the many areas that see consistently strong demand for office space in Berkeley. Located between Hearst Avenue, Oxford Street, Dwight Way, and Martin Luther King Junior Way, this part of town is home to large, investment-grade office buildings such as the 2150 Shattuck office property, The Corder Building, and 2100 Milvia Street.
Berkeley, CA Commercial Inventory Breakdown
Total: 2,308,757 SF
By square footage range:
- 50k to 100k SF: 995,701 SF / 43.13% of total office
- 100k to 500k SF: 1,313,056 SF / 56.87% of total office
- Class A: 964,914 SF / 41.79% of total office
- Class B: 1,081,647 SF / 46.85% of total office
- Class C: 262,196 SF / 11.36% of total office
Berkeley, CA - Green Office Space
With nearly 200,000 square feet of green office space already completed in Berkeley, the amount of energy-efficient office space here is just beginning to grow. The most recent National Green Building Adoption Index noted that of the top 30 major U.S. office markets, six are located in the state of California, including Berkeley's neighboring city of Oakland. The survey measured the growth of green, LEED, and EPA Energy Star-certified office space across these top markets and found that over the past 12 years, the overall percentage of green office building has increased nearly seven-fold.
A great example of a LEED-certified office building in Berkeley is the Aquatic Park Center - 700 Heinz Avenue. Located in the Southwest Berkeley commercial real estate submarket, this property was constructed back in 1989 and contributes 86,000 square feet of Class B LEED Silver-certified office space to the Berkeley market.
Berkeley, CA's Top Office-Using Sectors
The Berkeley commercial real estate market sees tremendous demand from the top office-using sectors of education, healthcare, research & development, and large corporate office users.
- Education – The University of California - Berkeley is the largest employer in the city and helps to generate demand for white collar office space in Berkeley.
- Healthcare – Kaiser Permanente and the Alta Bates Summit Medical Center are two of the larger institutions in this top office-using sector.
- Research – The Lawrence Berkeley National Laboratory creates a large amount of white collar office employment in Berkeley.
- Corporate Office – Bayer, Siemens, and the FHR Claremont Hotel Management Company all contribute to the demand for commercial real estate in Berkeley.
- Total Population120,179
- Male Population(48.5 %) 58,242
- Female Population(51.5 %) 61,937
- Median Age31.00
- Average Household Income$115,629
- Median Household Income$75,709
- Median Income Under 25$17,316
- Median Income 25-44$83,354
- Median Income 45-64$100,331
- Median Income Over 65$81,896
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