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Oakland can't find footing in Bay Area comeback as R&D sales dip. Industrial also lags, with some exceptions in Hayward, San Francisco gets tech hostels and more Bay Area news Oakland is still trying to find its footing in the Bay Area's comeback sequence. Vacancy in the research and development segment has continued its gradual decline that began at the beginning of the year, according to CBRE's third quarter report released Thursday - landing at 17.9 percent, down from 18.2 percent in the second quarter. But it's still a long ways away from the 7.4 percent vacancy seen in the third quarter of 2023. A bright spot within Oakland's R&D scene is San Leandro, which had an overall vacancy at 8.5 percent and secured the largest lease deal of the quarter with 154,000 square feet at the facility located at 2020-2040 Williams Street, per CBRE. There was only one transaction in Oakland R&D for the third quarter: the $6.5 million sale of 2020 North Loop Road to Lorin Bergman. That's a 93 percent decline quarter-over-quarter and an 84 percent decline year-over-year in dollar volume. Looking at Oakland's industrial market, there was a 53 percent increase in tenant demand compared to last year but the sentiment has yet to actually translate to leasing activity. "A shortage of modern product has limited leasing, with only well-featured, competitively priced properties attracting tenants," CBRE said in its report. There was about 1.3 million square feet of Oakland industrial space leased in the third quarter, down from 2.1 million square feet in the prior quarter. That activity included two high-profile leases at the former American Steel Blocks site in August, with Jeff Bezos' physical AI startup inking 100,000 square feet there and Elon Musk's Tesla signing on for 40,000 square feet. New construction is limited, with 167,000 square feet under way across two developments in Hayward and San Leandro. Neither project is pre-leased, according to CBRE. Hayward's heyday Through the noise, there were a couple of positive signals this week for the Hayward submarket specifically. Amazon's robotaxi company, Zoox, inked a lease for two industrial buildings at 25500 Clawiter Road in Hayward for a total of 350,000 square feet. That deal more than doubled the autonomous vehicle firm's existing footprint in the area, where it occupies 220,000-square-feet at 25810 Clawiter Road and 34,000 square feet at 25555 Clawiter Road. Also this week, Lincoln Property Company and New York Life Investment Management jointly purchased a 150,000-square-foot Hayward industrial facility at 30526 San Antonio Street for $37.5 million from PPF Industrial. That's a 262 percent jump from what it traded for a decade ago. The space is fully leased through summer 2028, and the new owners are looking to ramp up the facility's power capacity to 4,000 amps from its current 1,600 to support the needs of AI tenants. Erik Hanson of JLL brokered the sale. "They'd probably target advanced manufacturing tenants - anything from Tesla and Zoox to quantum computing," Hanson told the San Francisco Business Times. "Tenants like that have been very active in the market." Unorthodox living arrangements Outside of Oakland, there were a couple of peculiar developments in San Francisco's housing market this week. First, a conversion of former dorms at the Academy of Art University sets the stage for tech-bros-turned-bunk-mates. A startup called The Residency leased three properties at 1916 Octavia Street, 2209 Van Ness Avenue and 1153 Bush Street from the university to serve as tech hostels for entrepreneurs, researchers and academics. The stays are for three months at a time with a $2,000 monthly rate - which can potentially be swapped for equity in a resident's company. In San Francisco's Eureka Valley, a designated landmark property hit the market this week. The Alfred E. Clarke Mansion at 250 Douglass Street, also known as "Nobby Clarke's Folly," is a four-story mansion-style multifamily property which spans 8,220 square feet across two parcels and houses 15 apartments, a lower-level office and a separate cottage. Asking $6.5 million, or $406,250 per unit, the Clarke Mansion was built in 1893 as a single-family property before undergoing a series of use changes over the years, including stints as a hospital, before returning to residential use. Marketing materials point to a value-add opportunity by upping the property's unit count through accessory dwelling units.

Lincoln Property Company secures $132.7M construction loan for Culver City california mixed-use development. October 15, 2026 Lincoln Property Company ("Lincoln"), a global full-service real estate firm, and McCourt Partners ("McCourt"), a family-owned real estate development, investment, and management company, announced that they have secured $132.7 million in construction financing from Bank OZK for ElevenOneEleven, a new mixed-use development in Culver City. Located at 11111 Jefferson Boulevard, ElevenOneEleven will transform an underutilized 3.43-acre parcel into a six-story mixed-use development comprising 344 residences, including 52 affordable units, along with 2,000 square feet of retail and 17,520 square feet of publicly accessible outdoor space. "This financing marks a critical milestone for ElevenOneEleven, providing the capital needed to move into the next phase of bringing our vision for this project to life," said Stephen Lindgren, Senior Vice President and Los Angeles Market Lead at Lincoln. "McCourt has been an exceptional development partner throughout the process, and our collaboration reflects a shared conviction in the project and what it will bring to the Culver City community." ElevenOneEleven will feature two full floors of modern residential amenities and 500 parking spaces upon completion. Located at the intersection of Jefferson and Sepulveda Boulevards, the site is positioned near Downtown Culver City, Playa Vista, Marina del Rey, and Venice, with direct access to Interstate 405 and State Route 90 and connections to Interstate 10 and Interstate 105. "ElevenOneEleven represents a defining opportunity for Culver City, reimagining one of its most prominent intersections as a vibrant destination with a distinct sense of place," said Jordan Lang, President at McCourt Partners. "By bringing together thoughtfully designed residences and public spaces, the project will strengthen connections across the community, and create enduring value for Culver City." Senior Managing Director Lou Friedel and Managing Director Keith Rosso of Berkadia Los Angeles arranged the financing on behalf of Lincoln and McCourt. "Securing construction financing in today's environment speaks to the strength of the sponsorship and the fundamentals behind this project," said Friedel. "Los Angeles County continues to add new apartment supply at a relatively measured pace, while demand is projected to outpace deliveries. Culver City is particularly well positioned, with a deep employment base, strong connectivity, and immediate access to the Westside." ElevenOneEleven is being designed by KFA Architecture, with Kimley-Horn serving as the civil engineer. Construction is anticipated to commence in the fourth quarter of 2026. "We are excited to provide construction financing for a development of this caliber," said Aram Zakian, Managing Director of Originations at Bank OZK. "Lincoln and McCourt have distinguished track records of delivering high-quality developments and we are pleased to support their vision for ElevenOneEleven." Lincoln Property Company ("Lincoln") is one of the largest private real estate firms in the United States. Offering a fully integrated platform of real estate services and innovative solutions to owners, investors, lenders and occupiers, Lincoln supports the entire real estate lifecycle across asset types, including office, multifamily, life science, retail, industrial, data center, production studio, healthcare, government, higher education, sports and entertainment, and mixed-use properties, throughout the United States, the United Kingdom and Europe. Lincoln's combined management and leasing portfolio on behalf of institutional clients includes more than 720 million square feet of commercial space. McCourt Partners is a family-owned, community-driven real estate development, investment, and management firm with more than $1 billion in permanent capital. Backed by a 130-year legacy of building, the firm has developed an innovative global portfolio spanning over 38 million square feet across office, hotel, residential, and mixed-use assets including 360 Tenth Avenue in New York, The Stage in London, and the proposed Los Angeles Aerial Rapid Transit, a visionary zero-emission urban gondola system. The company most recently broke ground on a 28 million-square-foot development site in Phoenix, Arizona, adjacent to Taiwan Semiconductor Manufacturing Company's campus. Bank OZK (Nasdaq: OZK), through its Real Estate Specialties Group (RESG), provides financing on commercial real estate projects throughout the nation. RESG is considered a preeminent, market-leading construction lender focused on senior secured financing for a variety of property types including mixed use, multifamily housing, condominiums, office, hospitality, life sciences, industrial, cold storage, self-storage and retail. For the five years ended June 30, 2026, RESG originated approximately $38.75 billion in new loans.