Uptown Oakland Outpaces Downtown As New Submarket Takes Shape

A renaissance in downtown Oakland remains largely stalled after the pandemic emptied the area’s businesses, but northeast of the central business district, another submarket is blossoming.

Uptown Oakland, which generally starts at 15th Street and extends toward Lake Merritt, has outstripped downtown Oakland by a significant margin to become a major hub of the city’s renewal. 

“It’s driven by stronger amenities, this better perception of public safety and higher-quality office product,” Avison Young Market Intelligence Analyst Howard Huang said of uptown Oakland.

There are substantial investments in multifamily projects, increased foot traffic and the launch of the Northlake Project, a public-private partnership initiative focused on 20th through 27th streets that seeks to further improve the public’s experience in the area.

The numbers support the emerging trend. At the end of the first quarter, office vacancy rates in downtown remained nearly twice as high as in uptown, reflecting a growing divide between the submarkets. Direct vacancy downtown is 32%, nearly double uptown’s 18%. Downtown saw negative 15K SF absorption, while uptown clocked positive absorption of 43K SF, according to a report by Avison Young. 

Class-A office buildings are generating renewed energy uptown. Tenants looking to downsize are driving a “flight to experience,” characterized by a more expensive space with lake views on higher floors. Professional services including law firms, insurance and healthcare account for the majority of new tenants. Downtown’s Class-A vacancy rate is nearly twice that of uptown, 39% versus 21%.

The Department of Veterans Affairs signed a nearly 80K SF lease at 1950 Franklin St. CIT Group purchased a 140K SF building just a block away at 1814 Franklin St. PG&E purchased its headquarters at 300 Lakeside Drive in 2024, with the price to be finalized this year. 

Uptown Oakland is known for its lake views and lively atmosphere. The neighborhood is bounded by 15th and 27th streets, San Pablo Street to the west, and Lake Merritt on its east side.

The Fox Theater, Paramount Theatre and Ceremony concert venue, along with a slew of new restaurants opening, round out the neighborhood’s draws. 

Perhaps most notably, foot traffic in uptown Oakland has consistently outpaced downtown from 2023 onward, with March 2025 showing 13% higher visitation. City government employees’ return-to-work order was pushed to June 2, leading to empty streets around an unoccupied City Hall downtown during the day.

Depressed activity downtown and the perception of crime in the area often act as a deterrent for companies considering a move.

“We’ll have brokers who are about to close a deal, touring a client, and something will happen on the street nearby and tenants will reconsider,” Huang said, highlighting the tangible impacts public safety issues cause. 

Lakeside Group is the real estate development company responsible for launching the Northlake Initiative. In October 2024, Lakeside Group bought 180 Grand, a 15-story office tower across the street from Lake Merritt in Uptown, for $30M. 

Northlake builds upon the work of the Uptown Downtown Oakland Community Benefit Districts, which has a contract with the city of Oakland and was launched in 2008. In 2024, the CBDs deployed an almost $4.5M budget to invest in public safety, cleanliness and events.

Lakeside co-owners Puja and Isaac Abid pitched an initiative that would go beyond simple retail activation and security. The concept became Northlake, which incorporates the idea of placemaking, branding and attracting large employers. The team saw an opportunity to use their resources and collaborate with the city to make improvements. 

“We’re not asking the city for funding, just to partner with us. We want to make sure we are moving things along and understand where they have gaps,” Puja Abid said. “The thesis is that if we invest in Northlake, we can continue to invest in the community,” she said. The couple also live in the neighborhood. 

The Abids are working with Holland Partner Group on the initiative and kicked it off in April. 

“We have been big supporters of Oakland since 2014 and felt that this area was unique because of the concentration of new development, proximity to Lake Merritt and nearby amenities,” Holland Executive Managing Director John Wayland said.

The developer has two mixed-use buildings in Northlake. Vespr, which opened three years ago, contains 405 apartment units and 50K SF of retail. The Lark, which opened nine months ago, has 320 units with 15K SF of retail. The buzzy Flour + Water Pizzeria signed a lease and is set to open later this year on the ground floor of the building. 

Positive signs abound for the neighborhood, but as with most urban areas today, fully recovering from the pandemic's impact will take time. 

“I think uptown has passed the bottom and is on its way back up. But it’s going to take some time,” said Huang.