There are 8000 apartments under construction within the downtown Oakland neighborhoods… and we are still growing. Last week Oakland’s planning commission approved yet another high-rise in downtown Oakland. This 37 story, 307 residential apartment and commercial tower is planning architectural enhancements to delight the gorgeous, and growing Oakland skyline. What does that mean for Oakland home buyers and sellers?
The abundance of residential development is causing curiosity and concern. Will the additional housing planned, and in progress, impact our property values? I’m not so sure. In fact, we may see an opposite effect.
Keep in mind 8000 residential units are being built as apartment buildings, and I think it is safe to say that we will, and are, seeing rents relax. Incentives are widely offered in the lease up of the new buildings, which in turn pressures existing apartments to reduce prices, or join the incentive game. This is encouraging more and more businesses and workforce individuals to bring it home to Oakland. This becomes an even more exciting cycle, as retailers join in the energy with much needed services.
Yesterday, CIM developers announced the much anticipated Jack London Market finally under contract. Entertainment venue developer John McEnery of Kinzie Bridge Holdings has signed a lease for 40,000 square feet to finally occupy an open food and entertainment market. This may very well become a destination Ferry Building type venue in the center of this beautiful Bay Area. This is a huge attraction that increases Oakland residential demand and the desire to invest in this exciting energized city. Oakland residential values are strong, and we believe this trend will continue for some time ahead.