A
marok Capital, a locally based company, recently sold a 40,000-square-foot office space in Uptown Oakland to the Felton Institute, a bargain-hunting nonprofit organization for $6.8 million. This transaction indicates that Oakland is on par with San Francisco in terms of price cuts, albeit at a smaller scale.

    The price per square foot of $170 is slightly lower than the current range for larger properties in San Francisco's Financial District, which has experienced a reset due to the pandemic. This suggests a trim for Amarok Capital, which purchased the building for $8.3 million in 2016 and invested additional funds into upgrading the property's common areas.

    The decline in value of around 20% that Amarok Capital realized on the sale is relatively moderate compared to other recent deals in Oakland. For instance, an office tower at 1700 Broadway, which was sold for $13.3 million in 2017, was recently resold for $2.75 million.

    The plummeting prices coincide with a rise in office vacancies in Oakland's Central Business District, which includes Downtown and Uptown districts and boasts approximately 12 million square feet of space. According to CBRE data, the vacancy rate in the second quarter increased slightly to 31.8% compared to the previous period.