Oakland Uber Alles? Ridesharing App To Announce Oakland Real Estate Deal
Uber Technologies Inc. has possibly shaken up the Bay Area real estate market. Although details are unknown as of publication, Uber could announce Wednesday morning the purchase of workspace in Oakland’s former Sears building.
Scheduled to re-open in two years, Uber could be primed to take over the entire building, all 330,000 square feet. A major announcement is expected from Uber on Wednesday morning. There has not been an office building built in Oakland for more than a decade, notes Cory Weinberg for the San Francisco Business Times.
The move is indicative of massive growth by the company. Uber already rents half-million square feet on Market Street and nearly 500,000 square feet for a Mission Bay headquarters not yet open.
The former Sears building – to re-open as “Uptown Station” – can house 3,000 employees. Uber could become Oakland’s largest employer outside government agencies or medical centers, surpassing Clorox and Pandora, if it occupies the entire building. Recent press and thought in regards to Oakland real estate has centered on the city being left behind in the Silicon Valley real estate boom.
Currently, commercial real estate in San Francisco is peaking. Consistent complaints about the prices color the discussion of real estate life in San Francisco. Things are much different in Oakland. As Quartz writes:
The stark differences between these two cities can be seen in the demand for commercial real estate leases as well. From 2010 to 2014, Oakland’s average per-square-foot cost rose 19% to $28.60—less than San Francisco’s going rate five years ago. San Francisco averaged $63.24 per square foot at the end of 2014, basically doubling over the same period. There’s a major gap in vacancy rates too: Oakland’s 11.6% versus San Francisco’s 6.6%.
This and other moves on the part of the ridesharing app shows that, amid a skeptical business and regulatory environment, Uber is still growing.
Featured image from Shutterstock.