When it comes to commercial recovery, Uptown Oakland takes an extra edge over Downtown. The same can be assessed through the opinions of real estate experts in San Francisco. Firms like Avison Young attribute this to its mindful real estate strategies.
Highlights
- Foot traffic in Uptown Oakland was 13% higher than in Downtown in March this year.
- Real estate firms cite urban setting, open-air amenities, and public safety measures as the reasons for higher foot traffic in the uptown area.
- Industry leaders believe that Downtown’s reinvention will take a long time until there is an economic shift.
Uptown’s Urban Vibe Attracts Higher Foot Traffic
Canada-based real estate brand Avison Young views 15th Street as the dividing line between Uptown and Downtown. It first analyzed the two Oakland neighborhoods after the pandemic. This is because that period demonstrated a lack of appealing outdoor offerings in Downtown, which led to a dip in its foot traffic.
According to Avison Young, Downtown’s decreased foot traffic is a contributor to its commercial recovery issues.
The Canada-based company’s first-quarter report recently shed light on foot traffic and occupancy rates in both of the San Francisco-based neighborhoods. Avison Young reported that both rates are stronger in the Lake Merritt/Uptown area than the City Center Market/Downtown.
The visitation rate in Uptown during March 2025 was 13% higher than Downtown. Plus, Uptown’s vacancy rate in the first quarter was half of Downtown Oakland’s 38.2% rate.
Property owners, like Lakeside Group, which owns developments in both the Oakland neighborhoods, cited the “urban fabric” of Uptown for its win. It added that due to higher daytime traffic, Uptown Oakland sees greater pedestrian activity, which uplifts the neighborhood’s safety.
Young Entrepreneurial Companies Pick Uptown Over Downtown Oakland
Uptown Oakland’s robust amenities, enhanced outdoor spaces, and improved public safety are drawing emerging startups and entrepreneurs.
Most of these budding entrepreneurial firms are establishing themselves close to Lake Merritt, not Downtown.
Uptown Neighborhood Demonstrates a Quicker Recovery
The CEO of Danville-based real estate developer Behring Companies stressed that Uptown has a quicker commercial recovery for its new, high-quality properties. Recent years have seen Uptown convert old auto garages into contemporary commercial spaces, a contrast to Downtown’s earlier developments.
Additionally, the Uptown neighborhood worked to make its 10 towers better by adding retail outlets through revamp initiatives.
Apart from this, culture spots like Fox Theaters and Paramount are Uptown’s revered culture spots, which can be a good pick for developers wanting to build event and co-working facilities.
Challenges for Downtown in Its Attempt for Short-Term Fixes
Avison Young’s Mark McGranahan asserted that even if Downtown considers reinvention, it would not be possible to do it through a short-term fix. He added that the process could take longer until Downtown Oakland faces an economic shift.
On the same backdrop, McGranahan said that, unlike Uptown, San Francisco’s Downtown neighborhood has been struggling to offer discounted rent to its residents. Plus, once maturity dates for Downtown loans come along, new and default owners will enter the competition.
Avision Young added that Uptown’s direct asking rents are $4.32 per sq. ft. every month. Whereas, $4.52 is the direct asking rent for Downtown Oakland.
Based on these details, McGranahan said that Downtown Oakland’s buildings will eventually go bankrupt. To get out of the trouble, the neighborhood would need a new lender and capital.
Amid Downtown’s troubles of buildings facing potential bankruptcy, Uptown has emerged strongly with its focus on community-based development in an urban setting.
