East Bay industrial leasing rebounds as technology and manufacturing users drive demand

Industrial leasing activity in the East Bay accelerated sharply in the second quarter of 2026, signaling renewed tenant demand despite a market still working through elevated vacancy and negative net absorption. Total new leasing volume, including deals recorded in the quarter and those still under review, is estimated to reach 4.0 million square feet in the second quarter of 2026, up from 2.8 million square feet in the first quarter and well above the 2015-2025 quarterly average of 3.0 million square feet.