The East Bay multifamily market has begun to stabilize as we move into spring. With more companies continuing their return-to-office plans and warmer weather approaching, renters are starting to look for new housing options. Rents have remained stable through the first quarter of 2025, and activity is beginning to pick up.
There’s also positive news on the financing side. I recently received updated information from a commercial lender indicating that interest rates for properties with five units or more are starting around 5.6%. Rates have begun to trend slightly downward, which is encouraging news for both buyers and sellers.
Off-Market Opportunity: Rockridge Fourplex
This is a rare opportunity to acquire an off-market fourplex in one of the most desirable neighborhoods in the East Bay—just half a block from Rockridge BART and Market Hall.
Property highlights:
- Over $11,800 in gross monthly rent
- Listing price: $1,649,000
- Current cap rate: 5.6%
- Market cap rate: 6.3%
- Current GRM: 11.6
- Market GRM: 10.7
Three of the units have been upgraded and are currently vacant, giving the new owner the ability to select tenants at market rents or pursue an owner-occupant or family move-in strategy.
For more details, see: 328 Forest Street Fourplex
To review recent listings, closed sales, and previous market updates, visit East Bay Apartment Advisors.
Current Market Valuations
While it may take some time to fully understand how recent interest rate fluctuations affect pricing, buyers and sellers are currently aligned on valuations after an extended period of higher rates.
When the Federal Reserve announces the timing of future rate reductions, we expect to see increased market activity. Lower mortgage rates typically allow buyers to pay slightly more due to improved cash flow.
Sellers continue to receive strong offers for properties that:
- Are located in strong neighborhoods
- Have stable rental income
- Show minimal or no deferred maintenance
Outlook for East Bay Rents
Rental demand remains solid. We recently filled a vacancy in Adams Point (Oakland) quickly at market rent, reinforcing that well-priced units in good locations continue to perform.
New apartment construction has slowed dramatically, which should result in increased interest for available units. As we move further into spring and summer leasing season, vacancy rates are expected to remain low.
If you’re having difficulty filling a vacancy or have questions about pricing strategy, feel free to reach out. In many cases, offering a temporary rent concession is a more effective solution than permanently lowering rent.
Current Sales Market
If you’re considering selling within the next 6–12 months, now is a good time to begin planning. The sales market remains strong, with buyers underwriting deals based on income levels similar to pre-COVID conditions.
One common question sellers ask is how to defer capital gains taxes. Two commonly used strategies include:
- Delaware Statutory Trusts (DST)
- 1031 Tax-Deferred Exchanges
I also recently presented at the East Bay Rental Housing Association on increasing rental revenue. You can view highlights here: Maximizing the Return on Your Investment.
My most recent transaction—a triplex in Oakland—went into contract at list price with a short closing and no issues, further demonstrating that pricing and marketing strategy continue to drive strong results.
Guidance Matters
If you’re thinking about selling your apartment building, I can assist with valuation, strategy, and guidance throughout the process.
I work closely with top East Bay multi-unit lenders who are actively closing transactions. Buyers with solid down payments can still secure financing, and I can help navigate the process from start to finish.
Comprehensive marketing—across listing platforms, broker networks, and targeted email campaigns—ensures your property is seen by tens of thousands of qualified buyers.