2016 snapshot - berkeley, california...2016 snapshot solano is a small commercial district in north...

2016 snapshot

City of Berkeley | Office of Economic Development | 510.981.7530

Downtown Berkeley serves as the City’s core commercial district, meeting the daily needs of residents, students, workers and visitors. The district benefits from a significant concentration of arts and entertainment uses occupying 14.9% of total ground floor commercial space in the district compared to 3.9% citywide. In 2016, new office tenancies and residential developments contributed to increased pedestrian activity in the area. As of Q3 2016, the vacancy rate in Downtown Berkeley had fallen to 4.7%, roughly a third of its high of 15.1% in 2008. Sales tax revenue generated by food and beverage service businesses continues to rise, mirroring the Citywide trend.

15.1%13.2%

10.7% 11.2%8.4%

4.7%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

2008 2010 2012 2014 2015 2016

Ground Floor Commercial Vacancy Rate (by Square Footage), 2008-2016

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$1,000,000

2 0 1 0 2 0 1 2 2 0 1 4 2 0 1 6

SALES TAX REVENUE BY SECTOR, 2010-2016

Business & Professional Services Food & Beverage ServicesOther/ Non-Retail Personal ServicesRetail

0.0%

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40.0%

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100.0%

Downtown Citywide

Business Mix (by Square Footage), 2016

Vacant

Arts, Entertainment &RecreationTrade Services

Office / Other Non-Retail

Business & ProfessionalServicesPersonal Services

Public and NonprofitEntitiesFood & Beverage Services

Retail

2016 snapshot

The Elmwood is a compact three block commercial district along College Avenue near the Berkeley Oakland border and the neighboring Rockridge shopping district. The Elmwood is characterized by a high concentration of retail and food and beverage services and is a walkable, neighborhood-serving commercial district. As of Q3 2016, the district’s vacancy rate by square footage was 1.5%, a significant decrease from 2012’s high of 10.8%. The steep decline in vacancy is due primarily to the re-development of the space formerly occupied by Wright’s Garage. Retail and Food and Beverage Services remain the top (and increasing) generators of sales tax in the district. In 2016, Food & Beverage surpassed retail as the top sales tax generating sector of the district.


10.0% 10.7% 10.8%

2.0% 2.0% 1.5%0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

2008 2010 2012 2014 2015 2016


$-

$50,000

$100,000

$150,000

$200,000

$250,000

2 0 1 0 2 0 1 2 2 0 1 4 2 0 1 6


Business & Professional Services Food & Beverage ServicesOther/Non-Retail Personal Services

Retail

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

Elmwood Citywide

Business Mix (by Square Footage), 2016Vacant




Public and Nonprofit Entities

Food & Beverage Services

Retail

2016 snapshot

North Shattuck is one of Berkeley’s oldest commercial districts, alternately known as the “Gourmet Ghetto.” North Shattuck is characterized by a high concentration of well known, long standing, and celebrated restaurants, including Chez Paniesse and the Cheeseboard. North Shattuck is both a walkable, neighborhood-serving commercial district, as well as a global destination for food and dining. As of Q3 2016, the district’s vacancy rate by square footage was 2.6%, a slight increase from the prior year. Food and Beverage performance, as measured by sales tax revenue, has increased since 2012.


4.1%

12.0%

4.5%1.6% 2.1% 2.6%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

2008 2010 2012 2014 2015 2016


$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2 0 1 0 2 0 1 2 2 0 1 4 2 0 1 6


Business & Professional Services Food & Beverage Services

Other/ Non-Retail Personal Services

Retail

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

North Shattuck Citywide





Public and NonprofitEntitiesFood & BeverageServicesRetail

2016 snapshot

San Pablo Avenue is Berkeley’s largest commercial corridor, running the entire north-south length of the City. San Pablo is characterized by a high concentration of trade services, including over 60 automobile services businesses. San Pablo functions more as a regional destination for specific uses rather than a walkable, neighborhood-serving commercial district; as such, it features smaller percentages of food and beverage services and personal services.

As of Q3 2016, the district’s vacancy rate by square footage was 5.9%, the same as 2014, and a decrease from 2015. Retail performance along the San Pablo corridor, as measured by sales tax revenue, has increased steadily since 2010.


6.0% 6.6%7.9%

5.9%7.3%

5.9%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

2008 2010 2012 2014 2015 2016


$-

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$400,000

$600,000

$800,000

$1,000,000

2 0 1 0 2 0 1 2 2 0 1 4 2 0 1 6



Other / Non-Retail Personal Services

Retail

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

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90.0%

100.0%

San Pablo Citywide






Retail

2016 snapshot

Solano is a small commercial district in North Berkeley, with a total of 130 commercial spaces and approximately 191,000 square feet of commercial space. It shares a border with Albany and is situated next to a large elementary school and an active neighborhood of mostly single-family homes. Solano has key vacancies (i.e. the Oaks Theatre) that are ripe for a catalyst project. Discounting the Oaks’ large vacant floorplate, the district’s vacancy rate by square footage was 7.5%, an increase from increase from 2015’s rate of 3.5%.


6.0% 6.3%

4.4% 4.2%3.5%

7.5%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

2008 2010 2012 2014 2015 2016


$-

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$100,000

$150,000

$200,000

$250,000

2 0 1 0 2 0 1 2 2 0 1 4 2 0 1 6


Business & Professional Services Food & Beverage ServicesOther/ Non-Retail Personal ServicesRetail

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

Solano Citywide



Office / Other Non-RetailBusiness & ProfessionalServicesPersonal Services


South Berkeley is a large district stretching over an area known for its cultural diversity and includes the Lorin District, the Sacramento corridor, and South Shattuck. South Berkeley includes several car dealerships, which accrue significant retail sales tax revenue for the City. The area also features a high concentration of ground floor office uses (22.5%), and is under-served by food and beverage services, which accounts for only 7.5% of ground floor commercial space, as compared to 13.1% citywide.As of Q3 2016 the district’s vacancy rate by square footage was 8.2%, a decline since 2012’s peak. Food & Beverage Services, as measured by sales tax revenue, has increased steadily since 2010.

2016 snapshot


8.7%11.0%

12.3%

8.9% 7.9% 8.2%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

2008 2010 2012 2014 2015 2016


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2 0 1 0 2 0 1 2 2 0 1 4 2 0 1 6

SALES TAX REVENUE BY SECTOR 2010-2016



Retail

0.0%

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30.0%

40.0%

50.0%

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90.0%

100.0%

South Berkeley Citywide






2016 snapshot

The Telegraph District has undergone significant change over the past several years. Retail performance began to recover between 2014-16 after a decline in 2012. Food and beverage services has shown a dramatic increase and steady increase since 2012 and has surpassed retail as measured by sales tax revenue. Over the past three years, the ground floor commercial vacancy rate has dropped, to 5.1% as of Q3 2016. A number of pending development projects are also slated for the district, which, if constructed, could bring hundreds of new housing units to the area.


17.2%15.3%

17.9%

12.7%

7.1%5.1%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

2008 2010 2012 2014 2015 2016


$-

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2 0 1 0 2 0 1 2 2 0 1 4 2 0 1 6




Retail

0.0%

10.0%

20.0%

30.0%

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60.0%

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90.0%

100.0%

Telegraph Citywide





Public and Nonprofit Entities

Food & Beverage Services

Retail

2016 snapshot

University Avenue, running from Martin Luther King Jr Way to the waterfront, spans many of the City’s neighborhoods and serves as the gateway to the UC Berkeley Campus. Food and Beverage Services remains the strongest sales tax generating sector of this district, followed closely by retail. As of Q3 2016, the district’s vacancy rate had increased from the prior year to 14.2% due to a few key parcels turning over. New housing and retail spaces are slated to open along the corridor in mid-2017.


10.9% 10.1%

14.2%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

2008 2010 2012 2014 2015 2016


$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

2 0 1 0 2 0 1 2 2 0 1 4 2 0 1 6



Other/Non-Retail Personal Services

Retail

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

University Citywide






Retail

2016 snapshot

West Berkeley represents all commercial spaces west of San Pablo Avenue, including 4th Street, and the Gilman Corridor. There are a number of major, large floor-plate retailers such as Whole Foods, Berkeley Bowl West, and a cluster of home supplies and construction businesses at Ashby Avenue. There is also a higher percentage of non-retail commercial uses, including manufacturing and warehousing. Commercial vacancy increased significantly in West Berkeley in 2016, owing mostly to one large mixed-use, industrial space vacancy (the former Pyramid Brewing) which has remained vacant since late 2015.


8.6%

4.0% 3.9% 3.3%

8.8%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

2008 2012 2014 2015 2016


$-

$1,000

$2,000

$3,000

$4,000

$5,000

2 0 1 0 2 0 1 2 2 0 1 4 2 0 1 6

THO

USA

ND

S




Retail

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

West Berkeley Citywide

Business Mix (by Square Footage), 2016

Vacant





Retail

2016 snapshot - berkeley, california...2016 snapshot solano is a small commercial district in north...

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