Tuesday, February 25, 2025 AGENDA Page 1
P R O C L AM AT I O N
C AL L I N G A S P E C I AL M E E T I N G O F T H E
B E R K E L E Y C I T Y C O U N C I L
In accordance with the authority in me vested, I do hereby call the Berkeley City Council in special session as follows:
Tuesday, February 25, 2025
4:00 PM
SCHOOL DISTRICT BOARD ROOM - 1231 ADDISON STREET, BERKELEY, CA 94702
ADENA ISHII, MAYOR
Councilmembers:
DISTRICT 1 – RASHI KESARWANI DISTRICT 5 – SHOSHANA O’KEEFE DISTRICT 2 – TERRY TAPLIN DISTRICT 6 – BRENT BLACKABY
DISTRICT 3 – BEN BARTLETT DISTRICT 7 – CECILIA LUNAPARRA DISTRICT 4 – IGOR TREGUB DISTRICT 8 – MARK HUMBERT
This meeting will be conducted in a hybrid model with both in -person attendance and virtual participation. Live captioned broadcasts of Council meetings are available on B -TV (Channel 33) and via internet video stream at http://berkeley.granicus.com/MediaPlayer.php?publish_id=1244. All Council meetings are recorded.
To access the meeting remotely use this URL: https://cityofberkeley-info.zoomgov.com/j/1608430091. To request to speak, use the “raise hand” function in Zoom. To join by phone: Dial 1-669-254-5252 or 1-833-568-8864 (Toll Free) and enter Meeting ID: 160 843 0091 . To provide public comment, Press *9 and wait to be recognized by the Chair. To submit a written communication for the public record, email [email protected].
This meeting will be conducted in accordance with the Brown Act, Government Code Section 54953. Any member of the public may attend this meeting, however, if you are feeling sick, please do not attend the meeting in person.
The City Council may take action related to any subject listed on the Agenda.
Pursuant to the City Council Rules of Procedure and State Law, the presiding officer may remove, or cause the removal of, an individual for disrupting the meeting. Prior to removing an individual, the presiding officer shall warn the individual that their behavior is disrupting the meeting and that their failure to cease their behavior may result in their removal. The presiding officer may then remove the individual if they do not promptly cease their disruptive behavior. “Disrupting” means engaging in behavior during a meeting of a legislative body that actually disrupts, disturbs, impedes, or renders infeasible the orderly conduct of the meeting and includes, but is not limited to, a failure to comply with reasonable and lawful regulations adopted by a legislative body, or engaging in behavior that constitutes use of force or a true threat of force.
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The above contribution disclosures and restrictions do not apply when the proceeding is competitively bid, or involves a personnel or labor contract. For more information, see Government Code Section 84308.
Tuesday, February 25, 2025 AGENDA Page 2
Preliminary Matters
Roll Call:
Worksession
Public comment is limited to items on this agenda only. The public may comment on each item listed on the agenda as the item is taken up.
The Presiding Officer will request that persons wishing to speak line up at the podium, or use the "raise hand" function in Zoom, to determine the number of persons interested in speaking at that time. Up to ten (10) speakers may speak for two minutes. If there are more than ten persons interested in speaking, the Presiding Officer may limit the public comment for all speakers to one minute per speaker. Speakers are permitted to yield their time to one other speaker, however no one speaker shall have more t han four minutes. The Presiding Officer may, with the consent of persons representing both sides of an issue, allocate a block of time to each side to present their issue.
Action items may be reordered at the discretion of the Chair with the consent of Council.
Worksession
1. Berkeley Economic Dashboards Update
From: City Manager
Contact: Eleanor Hollander, Economic Development, (510) 981-7530
Adjournment
I hereby request that the City Clerk of the City of Berkeley cause personal notice to be given to each member of the Berkeley City Council on the time and place of said meeting, forthwith.
IN WITNESS WHEREOF, I have hereunto set my hand and caused the official seal of the City of Berkeley to be affixed on this 20th of February, 2025.
/s/ Adena Ishii, Mayor
Public Notice – this Proclamation serves as the official agenda for this meeting.
ATTEST:
Date: February 20, 2025
Mark Numainville, City Clerk
Tuesday, February 25, 2025 AGENDA Page 3
NOTICE CONCERNING YOUR LEGAL RIGHTS : If you object to a decision by the City Council to approve or deny a use permit or variance for a project the following requirements and restrictions apply:
1) No lawsuit challenging a City decision to deny (Code Civ. Proc. §1094.6(b)) or approve (Gov. Code 65009(c)(5)) a use permit or variance may be filed more than 90 days after the date the Notice of Decision of the action of the City Council is mailed. Any lawsuit not filed within that 90 -day period will be barred. 2) In any lawsuit that may be filed against a City Council decision to approve or deny a use permit or variance, the issues and evidence will be limited to those raised by you or someone else, orally or in writing, at a public hearing or prior to the close of the last public hearing on the project.
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Agendas, agenda reports, and revised/supplemental material may be accessed via the online agenda for this meeting at:
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City Clerk Department - 2180 Milvia Street, First Floor Tel: 510-981-6900, TDD: 510-981-6903, Fax: 510-981-6901 Email: [email protected]
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Office of the City Manager
2180 Milvia Street, Berkeley, CA 94704 ● Tel: (510) 981-7000 ● TDD: (510) 981-6903 ● Fax: (510) 981-7099 E-Mail: [email protected] Website: http://www.CityofBerkeley.info/Manager
WORKSESSION
February 25, 2025
To: Honorable Mayor and Members of the City Council
From: Paul Buddenhagen, City Manager
Submitted by: Eleanor Hollander, Economic Development Manager Subject: Berkeley Economic Dashboards Update
SUMMARY
The Office of Economic Development (OED) is pleased to present the Citywide Economic Dashboard update for 2024 (Attachment 1), and the updated Commercial District Dashboards (Attachment 2).
CURRENT SITUATION AND ITS EFFECTS
Throughout 2024, the City of Berkeley continued to produce diverse economic activity, though progress by many measures has remained flat since 2023. Sales tax revenue across most industry sectors has increased very slightly over the last year. The citywide ground floor inventory vacancy rate is 7.5 percent, a decrease of six tenths of a percent from the rate observed in 2023. More than 400 innovation sector businesses contribute to the Berkeley economy, with more than four-fifths operating as “startups” (i.e. in the early stages of growth where the company is still undertaking R&D to create a viable product, developing a prototype, raising venture capital, or adjusting their go-to-market strategy). The attached dashboards present these trends in more detail and include the latest citywide data available through the fourth quarter of 2024, much of which has been collected through on-the-ground fieldwork.
Key findings include:
Unemployment rates increased slightly; overall job growth was observed in many sectors. Between November 2023 and November 2024, the total number of jobs located in the East Bay increased by 10,900, or 0.9%. The sectors with the highest year-over-year employment growth in included Architectural & Engineering Services (+7.1%), Education & Health Services (+4.0%), Government (+2.0%), Accommodation & Food Services (+1.5%), Leisure & Hospitality (+1.4%), and Arts, Entertainment & Recreation (+1.1%). The countywide unemployment rate went up, increasing from 4.5% in December 2023 to 4.7% in December 2024. Berkeley’s unemployment rate increased slightly, from 4.0% to 4.4% over the same period. This tracks with the year-over- year increase in the statewide unemployment rate from 4.9% to 5.4%.
2024 Economic Dashboards WORKSESSION
February 25, 2025
The number of startups in Berkeley increased slightly, with software, biotech and life science companies comprising more than two thirds of the total. In 2024, the City of Berkeley was home to more than 400 innovation sector businesses in software, life sciences, healthcare, clean technology, hardware, education technology, food technology, and other science, technology, engineering and math (STEM) industries. Of these, more than four fifths (83%) were “startups”, or businesses that are developing repeatable and scalable business models to sell innovative technology products or services that aren’t yet profitable. UC Berkeley innovation and entrepreneurship programs, as well as citywide coworking spaces, accelerators, and incubators help nurture these early-stage companies. Representing more than a third (35%) of innovation companies, Software is the largest sector, with many startups using artificial intelligence (AI) and machine learning. The Healthcare and Life Sciences sector isn’t far behind, representing 32% of local innovation companies, and developing solutions that improve human health and longevity. The remainder is comprised of 15% CleanTech (including climate, water, air quality and other environmental technologies), 13% Hardware, 2% Education Technology, 1% Food Technology, and 2% in “other” innovation industries.
Despite 2024 being another challenging year for fundraising globally, there were more than a handful of acquisitions, several companies secured sizable venture capital investments, and 16 startups received government and philanthropic R&D grants. Six companies were acquired in 2024: KatRisk, Integrated Molecular Diagnostics (IMD), Sliderule, Action Face, Nefeli Networks, and Replace Therapeutics (a tenant in Bakar Labs). 2024, like 2023, continued to be a tough environment for startups to raise venture and seed capital (as compared to 2021 & 2022) and Pitchbook’s Venture Monitor First Look report (published January 6, 2025) shows “down and flat valuations increased to nearly 30% of completed deals”. Despite the odds, 58 Berkeley startups raised $1.2 billion, with nine large deals (over $20M each) making up the lion’s share (88%).
Some of the notable investments into Berkeley startups included:
o $537 million for KoBold Metals to expand the company's exploration efforts on 5 continents to use AI to search for critical metals needed for cleaner energy and EVs and to develop a massive copper deposit abroad o $245 million for Twelve to decarbonize commercial aviation and transform CO2 into jet fuel and e-chemicals
o $90 million for Perfect Day to scale manufacturing of dairy protein using fermentation
o $35 million for Profluent to enable the creation and validation of an AI- generated gene editor and move it closer to improving healthcare and disease treatment
2024 Economic Dashboards WORKSESSION
February 25, 2025
o $34 million for Arris Composites to scale high-performing fiber composites in aerospace & consumer markets globally
16 Berkeley companies were also awarded more than $14M in R&D grant funding in 2024, including awards from the federal National Institute of Health, Department of Energy, and National Science Foundation, among others. In 2024, PitchBook, a database that provides information and research on private capital markets and tools for portfolio management, ranked UC Berkeley #1 in venture- funded startups founded by undergraduate alumni from any university worldwide, for the second year in row.
Office and lab vacancy rates in Berkeley increased. Overall office availability in Berkeley rose to 16% in Q4 2024 from the 13.4% observed in Q4 2023, though the figure is significantly lower than the 28% vacancy observed in neighboring Oakland. Asking rents for high quality office space in Berkeley have stayed relatively consistent and were at $3.32 per square foot (slight drop from 2023) in Q4 2024. Lab space in Q4, despite expanded inventory, remained at a premium in Berkeley, commanding rents of $6.92 per square foot (down slightly from $7.00 per square foot a year prior). The vacancy rate for Berkeley lab space is
48.6%, which has risen sharply in Berkeley in recent years, owing to the increase of new inventory from a large project in West Berkeley at 600 Addison Street (539,000 square feet total).
Average citywide ground floor commercial vacancy rates are down just slightly. Based on field data collected from September–November 2024, the citywide ground floor commercial vacancy rate decreased from last year (down from 8.1% to 7.5%), but is up from the 2020 citywide vacancy rate of 6.9%. In 2024, Downtown, Telegraph Avenue, and West Berkeley all experienced a year- over-year increase in vacancy rates— West Berkeley rose from 2.2% to 6.5% Telegraph rose from 9.3% to 9.9%; Downtown rose from 10.8% to 10.9%. San Pablo Avenue’s vacancy rate decreased from 15.5% to 7.1%, University Avenue’s rate decreased from 17.7% to 7.7%, and Solano Avenue had a slight drop in vacancy from 2.6% (2023) to 2.1% (2024). In addition, many pending development projects in Downtown Berkeley (recorded in the database as “other non-retail: leased or pending development”, rather than “vacant”) represent close to 240,000 square feet of space and encompass more than 50 spaces of commercial inventory in flux in the city’s central business district. The presence of these spaces in 2024 make the perception of vacancy in the downtown core feel much greater.
Occupancy by retail businesses, as a share of total ground floor square footage, held steady. The Business and Professional Services category increased 2.3% as a proportion of total commercial inventory from 2023 (now at
6.7%). Arts, Entertainment & Recreation decreased its share of total square
2024 Economic Dashboards WORKSESSION
February 25, 2025
footage with a drop of four tenths of a percent (now at 4.8%). Personal Services occupancy has increased from 8.1% in 2023 to 8.6% in 2024, along with Public/Nonprofit Entities which increased to 6.6% this year from the 5.3% of inventory observed in 2023. Some neighborhood commercial districts including Solano, North Shattuck, and Elmwood saw little change in Retail square footage over the last year, whereas South Berkeley saw a larger 11% increase in Retail occupancy (now at 39%). Businesses in the Food & Beverage category saw a slight (7 tenths of a percent) increase to occupy 12.5% of total ground floor square footage in the city in 2024.
In 2024, the City of Berkeley’s sales tax revenue was similar to 2023, but still shows a recovery from the nadir of 2020 & 2021. Berkeley’s annual sales tax revenues increased 28% year-over-year through the second quarter of 2024, from $14.7 million to $18.8 million. Alameda County (including all 14 cities) reported an annual sales tax decrease of 13.7% to $385 million over the same period, and the State of California witnessed a 1.4% decrease to $9.3 billion.
Sales tax revenue in the second quarter of 2024 at $3.8 million was up slightly (5.5%) from the same period in 2023 ($3.6 million); it was not higher than citywide sales tax collected in the initial recovery of the COVID-19 pandemic ($4.4M in the second quarter of 2022) or pre-pandemic ($4.1M in 2019). Overall, the Retail and Food & Beverage subsectors were the largest contributors to the city’s sales tax revenue (45% and 37% in Q2 2024, respectively). In the second quarter of 2024, sales tax collection increases were present in nearly every sector, with the exception of the “business and professional services” and “personal services” categories. The decreases likely represent a drop in large equipment (or other taxable) purchases or services made by non-profit institutions and fluctuations in gas and fuel prices (service stations are considered personal services with regard to sales tax collection). The housing market softened with lower sales volume, flattening rental costs and an increase in Berkeley home sale prices. Despite a 12% decrease in sales volume from November 2023-2024, the median sale price of a single- family home in November 2024 was $1.43M and Berkeley’s home prices increased by 7.5% over the same period. 44 single family homes were sold in Berkeley in November 2024, with an average of 15 days on the market. In the past five years (2020-2024), the median price of single-family homes in Berkeley hit an all-time high ($1.81M) in April 2022. For rentals, between December 2024 and the year prior (December 2023), Berkeley’s rents for studio apartments increased by 1.7%, rising to an average of $1,928 per month. The City of Berkeley continues to employ a wide range of approaches to support local economic sustainability. The City’s Small Business Revolving Loan Fund (RLF) and COVID-19 Resiliency Loan Program (RLP) have 24 active loans to Berkeley businesses totaling over $810,000 in outstanding principal.
2024 Economic Dashboards WORKSESSION
February 25, 2025
Both the RLF and RLP programs continue to be a favorable source of capital for Berkeley’s small businesses, and both funds will soon be serviced by Working Solutions, a CDFI lender. In addition, OED’s Civic Arts Grants Program continues to support Berkeley’s individual artists, arts organizations, and community festivals. In 2024, the Civic Arts Grants program funded 11 individual arts projects ($44,000 total awarded), 34 festivals ($199,680 total awarded), and 55 arts organizations ($444,799 total awarded). In 2024, the program also added two new grants categories; a one-time capital projects grants category ($300,000 awarded) and an arts programing effort (12 organizations for a total of $60,000 awarded). Today, the total Civic Arts grants award program is valued at close to three quarters of a million dollars ($748,479).
Other efforts include the deepening of a sophisticated marketing campaign to increase visibility, sales, and recognition for local enterprises and their employees. In 2024, the #DiscoveredinBerkeley campaign continued to spotlight exceptional, values-driven Berkeley companies that make Berkeley residents, business owners and workers proud. To date, the campaign has made nearly 4.4 million impressions and registered more than 180,000 concrete engagements online.
In 2024, OED continued to offer assistance with Green Business Certification, and a wide range of support for sustainable business networks including Berkeley’s six formal Business Improvement Districts (BIDs) and many other merchant organizations. OED worked to promote equitable economic development through a partnership with Project Equity that helps Berkeley businesses transition to worker owned cooperatives. Further, in 2024 OED supported two large efforts to streamline zoning for Berkeley’s businesses and innovation sector organizations. The results of both initiatives included simpler rules for businesses to obtain land use clearance across many commercial districts, shortened timelines for permitting, reduced permit costs, and resulted in greater clarity and certainty for firms wishing to get established or expand operations in Berkeley. In addition, OED worked with the Berkeley Chamber to create and publicize important city requirements, regulations and support services that a local business owner or aspiring Berkeley entrepreneur should know through a Doing Business in Berkeley webpage on the Chamber website, webinars, and other e-communications.
As part of the Berkeley Startup Cluster's Berkeley Ventures, Berkeley Values initiative, OED also worked to deepen and diversify Berkeley’s talent pipeline by arranging 125 Berkeley High School student-visits at 7 “STEM CareerX Tours” at Berkeley companies in 2024. The tours, organized in partnership with the Institute for STEM Education at Cal State University, provided an opportunity for students to see how their science, technology, engineering and math (STEM) skills apply in the workplace.
2024 Economic Dashboards WORKSESSION
February 25, 2025
BACKGROUND
Since 2015, OED has consistently released two companion publications, the Citywide Economic Dashboard and Commercial District Dashboards, which analyze a wide variety of economic trends and indicators in Berkeley. Attached to this report is the updated version of the Citywide Economic Dashboard and Commercial District Dashboard with data through December 2024 (Attachments 1 and 2). These dashboards are designed to make current economic and community data and information more accessible to Council, City staff, and community stakeholders.
Providing this information also allows investors to evaluate potential markets and provides vital information for policy-makers to better direct different social and economic programs. The reports provide updated information through Q4 2024. OED staff will continue to update these dashboards on an annual basis, as staffing allows, and has posted the most recent version on the City’s website at: https://berkeleyca.gov/doing- business/economic-development/economic-dashboards-and-reports.
To produce these publications, OED staff compiled and analyzed a wide variety of data sources including the Monthly Labor Force “LMI” Data (California Employment Development Department), the Employment Development Department’s (EDD) Quarterly Census of Wage and Employment Data (QCEW), commercial real estate data (Newmark Cornish & Carey, JLL), housing market data (Berkeley Rent Stabilization Board, Multiple Listing Service (MLS), CoStar, Zumper, and Redfin) and sales tax data (Avenu/MUNIServices). Staff also analyzed data from City databases including business licenses, building permits and planning permits. Information on Berkeley startups and other innovation companies was obtained from Pitchbook, Crunchbase, LinkedIn, the U.S. Small Business Administration, tech industry news sources, and direct communications with businesses or the
Berkeley Startup Cluster’s partners
including UC Berkeley, the Berkeley Lab, and Berkeley’s startup incubators, accelerators and coworking spaces such as SkyDeck, Bakar Labs, LAUNCH, and Bonneville Labs. Finally, in the third and fourth quarter of 2024, OED staff updated its field occupancy survey of ground floor commercial spaces in Berkeley commercial districts (Attachment 2). These publications support the City of Berkeley’s Strategic Plan, advancing our goal to be a customer-focused organization that provides excellent, timely, easily-accessible service and information to the community.
ENVIRONMENTAL SUSTAINABILITY
Many of the City’s environmental sustainability goals are tied to the overall health of the City’s economy. The continued pursuit of sustainable economic goals, represents a source of resilience for Berkeley.
POSSIBLE FUTURE ACTION
OED staff will, as directed by Council through previous and future referral items, partner with other City departments and community organizations to implement programs and policies that foster a dynamic, diverse, sustainable, and locally-based economy.
2024 Economic Dashboards WORKSESSION
February 25, 2025
FISCAL IMPACTS OF POSSIBLE FUTURE ACTION
Actions that facilitate increased economic activity may increase revenues related to the transit occupancy tax, business license tax, sales tax, and property tax, and thus have a positive fiscal impact on the city.
CONTACT PERSON
Eleanor Hollander, Economic Development Manager, (510) 981-7536 Elizabeth Redman Cleveland, Office of Economic Development, (510) 981-7532 Vincent McCoy, Office of Economic Development, (510) 981-7043 Attachments:
1: Citywide Economic Dashboard
2: Commercial District Dashboards
2024 Economic Dashboard
Office of Economic Development
1
CITY OF BERKELEY | OFFICE OF ECONOMIC DEVELOPMENT | 2024 Table of Contents
Citywide Economic Dashboard
EMPLOYMENT ACTIVITY 3-4 • Job Growth, Unemployment, Top 25 Employers
SECTOR SNAPSHOTS 5-7 • Hospitality
• Innovation & Startups
COMMERCIAL ACTIVITY 8-13
• Trends & Transactions – Office, Commercial Inventory
• Commercial Districts – Vacancy Rates, Occupancy by Business Type • Future Development
• Sales Tax Revenues
HOUSING 14-15 • Development Pipeline & Construction
• Rental Costs & Sale Prices
OED EFFORTS TO SUPPORT ECONOMIC SUSTAINABILITY 16-25 • Financing Small Businesses
• Marketing Businesses - #DiscoveredinBerkeley
• Enabling Business Networks
• Greening Business Practices
• Developing an Equitable Economy & Future Talent Pipeline • Grants supporting Arts & Culture
CITY OF BERKELEY | OFFICE OF ECONOMIC DEVELOPMENT | 2024 Percent East Bay change in employment by sector
(Nov. 2023 – Nov. 2024)
Employment Activity
job growth by industry sector & unemployment
Source: Labor Market Information (LMI-EDD) for East Bay (Alameda and Contra Costa Counties), December 2024.
Unemployment Rates show slight increase year over year:
Source: State of California Employment Development Department (EDD), Y Charts, Labor Market Information (LMI-EDD) 2023 2024
Ca
lifornia 4.9% 5.4%
Alameda County 4.5% 4.7%
Berkeley 4.0% 4.4%
Sector (in the East Bay) Percent
Cha
nge
% of Total
Jobs
Architectural, Engineering & Related Services 7.1% 1.5% Educational & Health Services 4.0% 19.1%
Government 2.0% 14.1%
Accommodation & Food Services 1.5% 7.8%
Leisure and Hospitality 1.4% 9.4%
Arts, Entertainment & Recreation 1.1% 1.5%
Retail Trade 1.1% 9.0%
Administrative & Support Services 0.5% 4.6%
Construction -0.7% 6.3%
Real Estate & Rental & Leasing -1.1% 1.5%
Transportation & Warehousing -1.2% 4.0%
Manufacturing -2.1% 8.8%
Computer Systems Design & Related Services -3.0% 1.6%
Job Growth
Between November 2023 and November 2024, the total number of jobs located in the East Bay increased by 10,900 or 0.9%.
The sectors with the highest percent growth in employment included Education and health services (up 8,900 jobs) along with Health care and social assistance (up 8,400 jobs). Other notable changes included increases in leisure and hospitality (up 1,600 jobs), professional and business services (up 1,500 jobs). Decreases were noted in the information sector (down 1,700 jobs), and trade, transportation, and utilities (down 1,100 jobs).
CITY OF BERKELEY | OFFICE OF ECONOMIC DEVELOPMENT | 2024 Employment Activity
largest employers
Top 25 Berkeley Employers
Berkeley’s top 25 employers (by number of employees) is reflective of the city’s diverse economy. Top employers include four in the healthcare sector and four in the education sector, including UC Berkeley, one of the city’s main economic engines. There are also a few large private sector corporations in Berkeley, notably Bayer. Two social service organizations made it onto the 2024 list: Insight Housing (formerly the Berkeley Food & Housing Project) and Satellite Affordable Housing.
Source: State of California Employment Development Department (EDD), Q1 2024 (Clockwise from top) Technical Safety Services,
Insight Housing, Satellite Affordable Housing.
Pictured at right:– project ribbon cutting.
Credits: Meta, Insight Housing, SAHA
Company Sector
Backroads Inc. Recreation
Bayer Corp. Biotech
Berkeley Bowl Produce Food & Beverage
Berkeley Cement Inc. Construction
Berkeley City College Education
Berkeley Emergency Food & Housing
Project (Insight Housing) Social Services
Berkeley Repertory Theatre Arts & Entertainment
Berkeley Unified School District Education
City of Berkeley Government
Fieldwork Brewing Co. Food & Beverage
Foresight Mental Health Healthcare
Kaiser Permanente Medical Group Inc. Healthcare
Lawrence Berkeley National Lab Laboratory
Lifelong Medical Care Healthcare
OC Jones & Sons Construction
Satellite Affordable Housing Social Services
Sutter Bay Hospital Healthcare
Target Corp. Retail
Technical Safety Services Biotech/Manufacturing
The Wright Institute Education
Twelve Manufacturing/ R&D
University of California Education
UPSIDE Foods Biotech/R&D
Whole Foods Market Food & Beverage
YMCA of the Central Bay Area Recreation
CITY OF BERKELEY | OFFICE OF ECONOMIC DEVELOPMENT | 2024 Sector Snapshots
hospitality
Hotel Occupancy & Inventory
Food & Beverage Services
Berkeley’s hospitality sector fared better than neighboring cities, both in hotel occupancy and tourism “image”.
• Berkeley hotel occupancy was consistently higher
than other Bay Area cities, with 2.4 million
overnight visitors and a vi
sitor spend of $187.7 mil.
• Average nightly hotel occupancy made a slight
increase from 2023, rising from 70% to 71%,
though still below pre-pandemic average
occupancy rates of more than 80%.
• The average daily room rate for Berkeley lodging
properties rose 3.2% to $187.50 per night.
• Berkeley has lost 8 lodging properties (7.2% of its
hotel inventory) since the pandemic, with most
being used to support the unhoused population.
• Berkeley’s 2024 hotel tax revenue was just under
$7.1 million, slightly more than 2023.
Highlighted on KTVU, a record number of participants
participated in Berkeley Restaurant Week.
UC Berkeley became part of the Atlantic Coast Conference, drawing new domestic visitors.
The
Bioneers
Conference
brought over
1,800 visitors to
Downtown
Berkeley in
March 2024. It
will return Mar.
27-29, 2025.
Photos: Visit Berkeley
VisitBerkeley.comwebpages such as the Event Calendar, Food & Drinks, and Where to Stay highlight local leisure opportunities. The Berkeley Bucks e-gift card continues to generate revenue for Berkeley businesses, with $17K redeemed in 2024.
CITY OF BERKELEY | OFFICE OF ECONOMIC DEVELOPMENT | 2024 Sector Snapshots
startups & innovation businesses
Sources: City of Berkeley Office of Economic Development (OED), UC Berkeley IPIRA *Companies defined as
startups are for-profit
businesses that sell innovative
technology products or services
OR substantively use innovative
technologies to develop and
manufacture their products or
provide their services AND are
developing repeatable and
scalable business models that
aren’t yet profitable.
Berkeley has more than 400 innovation companies citywide; the vast majority are startups.
Pitchbook ranked UC Berkeley #1 in venture-funded startups founded by undergrad alumni from any university worldwide AGAIN. 83%
9%
6% 1%1%
INNOVATION COMPANIES BY
GROWTH STAGE
Startup
Established company
Consulting company
Subsidiary company
Incubator or coworking facility
0 50
100
150
200
250
300
350
400
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Number of Startups*
CITY OF BERKELEY | OFFICE OF ECONOMIC DEVELOPMENT | 2024 Sector Snapshots
startup sectors & wealth creation
Despite the difficult
2024 fundraising
environment,
6 Berkeley startups
were acquired and
58 raised:
• $1.2B in
venture and
seed capital
• $14.3M in
government
R&D grants
Berkeley Innovation Sector
2024 Highlights
• : $537M to use AI to search for
critical metals needed for the clean energy transition
on 5 continents and to develop a massive copper
deposit in Zambia.
• : $245M to decarbonize commercial aviation
and transform CO
2 into Jet Fuel and eChemicals.
• : $90M to scale manufacturing of dairy
protein from fermentation.
• : $35M to enable the creation and
validation of an AI-generated gene editor and move it
closer to improving healthcare and disease treatment
• : $34M to scale high-performing fiber
composites in aerospace & consumer markets.
• : $30M to capture atmospheric CO2 and
make it available for industrial applications
32%
15%13%
35%
2% 2% 1%
Innovation Companies
by Industry
BioTech & Healthcare CleanTech
Hardware Software
Other Education
Food & Beverage
CITY OF BERKELEY | OFFICE OF ECONOMIC DEVELOPMENT | 2024 Commercial Activity
trends & transactions - office
Q4 2024 Office Market, Berkeley Indicators
Total Inventory 2,967,922 SF
Availability Rate 18.4%
Average Asking Rent $3.19/ SF
Source: Newmark Cornish & Carey, 4Q24 Greater Oakland Office Market Report Source: Newmark Cornish & Carey, 4Q24 Greater Oakland Office Market Report Office Vacancy Rate, East Bay Cities Q4 2020 – Q4 2024The number of office jobs in the East Bay has yet to return to pre- pandemic levels, with about 10 thousand fewer office-using jobs.
Office-based employment is just below early 2017 levels.
Overall leasing in the East Bay slowed down in Q4 2024 to about half the annual 10-year average. The average size of office leases has also decreased to just under 3,200 square feet, from roughly 5,600 square feet in years prior. It is anticipated that more distressed properties will go back to their lenders as rental rates continue to decline, and improvement costs remain high.
Source: Newmark Cornish & Carey, 3Q24 & 4Q24 Greater Oakland Office Market Reports 0%
5%
10%
15 %
20%
25%
30%
35%
4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 4Q23 4Q24
Alameda Berkeley Emeryville Oakland Richmond
CITY OF BERKELEY | OFFICE OF ECONOMIC DEVELOPMENT | 2024 Commercial Activity
trends & transactions – commercial inventory
Source: OED, Q3 2023
Together, three sectors (Food & Beverage, Retail, and Office/Other Non- Retail) comprised 60% of total 2024 ground floor commercial inventory.
Pending developments recorded in the Office/Non-Retail category have crested since 2021-2022, as many development projects were completed and opened for occupancy in the past year. In 2024, both Retail and Food & Beverage as a percentage of total square footage showed slight increases from the year prior (both up by 1%), but Retail as a total percentage of ground floor inventory has trended downward since 2020. The Personal Services category at 8.6%, Business & Professional Services (6.7%) and Public and Non-Profit Entities at 6.6% were the next largest categories by square footage.
Clockwise from top: A mixed use development site slated for construction at Shattuck and Allston Way; pending future development coming to a former movie theater on Shattuck Avenue; and retail spaces in transition on Shattuck Ave as a result of a pending development project. All are categorized as “Office: Other Non-Retail” in OED’s field survey.
Chart: OED
Photos: Hoodline,
OED, Foursquare
0%
10%
20%
30 %
40%
2020 2021 2022 2023 2024
Citywide Commercial Inventory by
Select Categories & Square Footage, 2020-2024
Food & Beverage Services Retail Office/ Other Non-Retail
CITY OF BERKELEY | OFFICE OF ECONOMIC DEVELOPMENT | 2024 Commercial Activity
business district vacancy rates
Vacancy Rates by District, Calculated by Square Footage, 2020-2024 Citywide, the ground floor commercial vacancy rate has decreased to 7.5%*, a drop of 0.6% since Q4 2023. The commercial districts of San Pablo, South Berkeley, University, and Solano experienced decreases. Vacancy rates increased in Downtown, West Berkeley, Telegraph, Elmwood, North Shattuck and the C-N districts.
Photos (l-R): R. Moon, Influent Home
Source: Berkeley OED
*Typical commercial district
storefront vacancy rates range
from 5-15% due to natural
market churn. Proposed and
pending development projects
throughout the city have an
impact on vacancy rates as well
as new openings with large
floorplates (pictured left).
District 2020 2021 2022 2023 2024 Year Over
Year Change
Downtown 9.9% 15.7% 11.9% 10.8% 10.9%
Elmwood 10.9% 10.9% 7.7% 6.2% 6.9%
North Shattuck 4.3% 4.3% 4.3% 1.9% 2.0%
San Pablo 4.8% 7.9% 10.8% 15.5% 7.1%
Solano 6.7% 4.4% 3.7% 2.6% 2.1%
South Berkeley 10.1% 8.8% 11.8% 19.2% 8.9%
Telegraph 17.2% 12.6% 8.5% 9.3% 9.9%
University 11.0% 9.1% 12.8% 17.7% 7.7%
Neighborhood Commercial (C-N) 7.3% 3.2% 2.3% 2.6% 2.8%
West Berkeley 3.7% 4.7% 5.2% 2.2% 6.5%
Citywide Avg. 6.9% 8.3% 8.4% 8.1% 7.5%
CITY OF BERKELEY | OFFICE OF ECONOMIC DEVELOPMENT | 2024 Commercial Activity
ground floor space occupancy by business type
Source: Berkeley OED Photos: The Spanish Table, Casa de Chocolates, Visit Berkeley *
*Other Non-retail
consists of properties
that are leased or
pending
development.
Retail comprises the most significant percentage (31%) of ground floor space across Berkeley commercial districts, with Food & Beverage also representing a large portion
(13%) of occupancy, especially in the Telegraph, Elmwood, Solano, and North Shattuck districts.
• Downtown a
nd San Pablo hav
e the dominant share of
Office/Other Non-retail (18% and 21%) due to the
high level of development activity that includes
ground floor retail with housing above.
• West Berkeley (including 4
th Street) has the highest
concentration of Retail (46%).
• Downtown has the highest vacancy rate (10.1%),
followed by Telegraph (9.9%) and
South Berkeley (8.6%).
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Downtown
Elmwood
North Shattuck
San Pablo
Solano
South Berkeley
Telegraph
University
C-N
West Berkeley
Citywide
Ground Floor Commercial Occupancy By Category, 2024
Vacant
Arts, Entertainment & Recreation
Trade Services
Office / Other Non-Retail
Business & Professional Services
Personal Services
Public & Nonprofit Entities
Food & Beverage Services
Retail
CITY OF BERKELEY | OFFICE OF ECONOMIC DEVELOPMENT | 2024 Commercial Activity
future development
New Buildings
UC Berkeley will soon be
the largest rate payer to
the Downtown Berkeley
BID* –
a number of planned and
recently completed
projects surrounding the
campus are providing
spaces to conduct
research, learn, and live.
The Gateway Center on the UC Campus will house the College of Computing, Data Science, and Society (CDSS), the first new college at UC Berkeley in 50 years. Image: Weiss/Manfredi (Left) The Helen
Diller Anchor
House, a dorm for
transfer students
to UCB, opened
for the 2024
academic year.
Photo: Jason
O’Rear
(Above and Right) Bakar Labs, where
UC Berkeley and QB3 run a life
science-focused incubator for
startups developing innovative
technologies to benefit society.
Photo: QB3
(Left) The proposed UC Innovation
Zone would include two buildings – a
South Building and North Building
totaling approximately 486,000 gross
square feet – with academic research
and collaboration space, parking, and
open space.
Image: UC Regents, South Building
Rendering (May 2024)
* BID – Business Improvement District, a fund
that supplements public services within
geographically defined boundaries.
CITY OF BERKELEY | OFFICE OF ECONOMIC DEVELOPMENT | 2024 Commercial Activity
sales tax revenues in 2024
Total Annual Sales Tax Revenue (Q2 + PreviousThree
Quarters) July ’22 to June ‘23 July ‘23 to June ‘24 % Change (Year over Year) City of Berkeley $14,709,995 $18,893,092 28.4%
Alameda County (total including cities) $447,204,095 $385,954,179 -13.7% State of California $9,510,809,118 $9,376,883,707 -1.4% In Q2 2024, the Retail subsector was the largest contributor to the city’s sales tax revenue (45%), with Food & Beverage second (37%). Sales tax revenue was up 5% from the same period in 2023, and is higher than citywide sales tax collected in the second quarter of both 2020 and 2021 (acute phases of the COVID-19 pandemic). Compared to Q2 last year, sales tax revenue across most business categories is up, with Retail increasing by 9% and Food & Beverage increasing by 19%. Decreases were noted in the Personal Services category where collections have decreased by 49% (owing to mostly service stations & fuel costs) and in the Business & Professional Services sector where collections are down by 8% from Q2 2023.
Source: MuniServices, Quarter 2 (Apr-June) Collections 2019 to 2024 Source: MuniServices, Quarter 2 (Apr-June) 2019 to 2024, Nominal Values $-
$500,000
$1,000,
000
$1,500,000
$2,000,000
$2,500,000
2019 2020 2021 2022 2023 2024
Berkeley Q2 Sales Tax Revenue by Business Category
Business & Professional Services Food & Beverage Services Other Non-Retail Personal Services Retail
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
2019 2020 2021 2022 2023 2024
Total City of Berkeley Q2 Sales Tax Revenues
CITY OF BERKELEY | OFFICE OF ECONOMIC DEVELOPMENT | 2024 Housing
development pipeline & construction
Pipeline & Construction Highlights
2029 University Ave (at Shattuck)
If built as proposed, this 23-story tower
supported by Laconia Development at 2029
University Avenue will add either 240 multi-
family or 160 student housing units to Downtown
Berkeley. If all projects in the current
development pipeline are built as proposed,
2029 University Avenue will be the sixth tallest
project in the pipeline, surpassed by 1998
Shattuck Avenue, 2128 Oxford Street, 2190
Shattuck Avenue, 2200 Bancroft Way, and
(potentially) 2115 Kittredge Street.
The Lair 2077 Haste St (at
Shattuck) In the fall of 2024, the new
Lair housing building on Haste at Shattuck
Ave brought online 40 new homes, and a
living wall at the dwelling entrance. Sources (from top): SF YIMBY, Rentable, Apartments.comSources: City of Berkeley Department of Planning and Development, December 2024, Map OED.
December 2024
Housing Development Pipeline
In 2024, applicants submitted land use permit applications for 13 distinct projects representing a total of 1,600 new housing units. The plans span several neighborhoods and are typically close to transit corridors and the UC Berkeley campus, the largest of which is “The Hub” at Oxford and Center Streets (456 Units). See 2128 Oxford St, inset at right.
Berkeley’s Large Residential Developments, Approved 2024 Approved Development Project
(Number of Housing Units)
Legend
CITY OF BERKELEY | OFFICE OF ECONOMIC DEVELOPMENT | 2024 Housing
rental costs & sale prices
Median Sale Price, Single-Family Homes, Nov. 2024
Alameda $1,170,000
Albany $1,325,000
Berkeley $1,430,000
El Cerrito $1,400,000
El Sobrante $782,500
Emeryville $585,000
Oakland $802,500
Richmond $665,000
Piedmont $2,900,000
San Leandro $875,000
Source: Redfin
Sources: Redfin, Apartment List, Zumper, Rent Cafe, and City of Berkeley Rent Stabilization Board Berkeley’s single family home values increased 7.5% from Nov. 2023 - 2024, with a 12% decrease in sales volume over the same period. 44 single family homes were sold in Berkeley in Nov. 2024, with an average of 15 days on the market. Over the past five years (2020-2024), the median price of single family homes in Berkeley hit an all time high ($1.81M) in April 2022.
Berkeley’s average rents for studio apartments increased by 1.7% between Dec. 2023- 2024 to an average of $1,928 per month.
Home sales soften, sale prices increase, rental prices flatten Sources: Redfin, Multiple Listing Service or “MLS”, Zumper - Rental Market Trends $900,000
$1,000,000
$1,1
00,000
$1,200,000
$1,300,000
$1,400,000
$1,500,000
$1,600,000
$1,700,000
$1,800,000
$1,900,000
2020 2021 2022 2023 2024
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
$2,200
Housing Prices in Berkeley, 2020-2024
Median Rents, Studio Apartment Median Sale Price, Single Family Homes
16
CITY OF BERKELEY | OFFICE OF ECONOMIC DEVELOPMENT | 2024 Revolving Loan Fund Portfolio Active Loans
Num
ber of RLF Loans 6
RLF $ Outstanding Principal $375,000
COVID-19 Resiliency Loan Program Portfolio Active Loans Num
ber of RLP Loans 18
RLP $ Outstanding Principal $435,000
Supporting Berkeley’s existing small businesses
The Resiliency Loan Program (RLP)
program, administered by Working
Solutions, a Community Development
Financial Institution (CDFI), was
established to help Berkeley businesses
weather the impacts of the pandemic. It is
a revolving fund with 18 active loans to
Berkeley borrowers.
Current Revolving Loan Fund (RLF) Borrowers:
Source: Berkeley OED, Working Solutions, December 2024
Source: Berkeley OED, December 2024
Financing small businesses through the
Revolving Loan Fund & Resiliency Loan Program
Source: CDFI.org, Working
Solutions
In 2024, City of Berkeley RLP loan
recipient El Tiny Cafe celebrated
their 4th Anniversary. Café owners
Lily and Alan gained access to a suite
of business support services,
including a Spanish-speaking
Working Solutions business
consultant who helped them
streamline operations and enhance
profitability.
Today, El Tiny Cafe is a community
anchor in their South Berkeley
neighborhood.
CITY OF BERKELEY | OFFICE OF ECONOMIC DEVELOPMENT | 2024 Marketing businesses #DiscoveredinBerkeley
@ Ciel Creative Space in West Berkeley
The Discovered in Berkeley marketing campaign highlighted businesses enabling adventure travel, producing beloved baked goods like bagels and scones, manufacturing induction stoves, scooping artisanal ice cream, and curating tea ceremonies.
By year end, the campaign had made ~4.4M impressions and generated nearly 179K concrete engagements. Since 2023, Be rkeleyside articles saw more than a 4K increase in readers (19K+ unique page views) and the .28% banner ad click-through-ra te more than doubled,
exceeding Berkeleyside’s site average (.15%-.20%). The 3.7K click through on in-story links increased from 1.6K in 2023.
Instagram @DiscoveredinBerkeley achieved 1,475 followers and #DiscoveredinBerkeley achieved nearly 6K uses.
CITY OF BERKELEY | OFFICE OF ECONOMIC DEVELOPMENT | 2024 • OED supports local BIDs, Visit Berkeley, and
the Berkeley Chamber through the
Berkeley Business District Network (BBDN).
• Coming in 2025 – 1
0 year strategic planning
and district renewal activities for the
Downtown and Tourism BIDs in Berkeley.
Enabling sustainable business networks
Map of Berkeley’s Commercial Districts
CITY OF BERKELEY | OFFICE OF ECONOMIC DEVELOPMENT | 2024 Internal
171 Berkeley companies have
registered for California Green Business
Program certification. 79 are currently
green business certified.
In 2024:
• 8
new green businesses certified
• 10 green businesses recertified
• 1,710,242 gallons of water saved
• 1,029,154 kWh of electricity
conserved
• 192,816 lbs of solid waste diverted
• 1,059 gallons of fuel saved
Greening local business practices
See Berkeley Green Businesses
at www.greenbusinessca.org
Green Businesses in Berkeley
The Potters Studio uses a filter press to recycle
clay and process glaze water, changed the studio
over to LED lighting, uses environmentally
responsible cleaning supplies, and continues to
look for ways to be a sustainable studio
.
Going Green Helps Companies
Achieve Environmental Benefits
and Cost Savings
CITY OF BERKELEY | OFFICE OF ECONOMIC DEVELOPMENT | 2024 Deepening and diversifying Berkeley’s
talent pipeline
OED and the Institute for STEM Education at Cal State University arranged 125 Berkeley High School student-visits at 7 STEM CareerX tours in 2024. The company tours provided an opportunity for students to see how their science, technology, engineering and math (STEM) skills apply in the workplace, as part of the Berkeley Startup Cluster's Berkeley Ventures, Berkeley Values initiative.
TDK: “I appreciated making those professional
connections; it’s something you can’t just get
without being there in person."
Terabase Energy: “The hands-on activities made it
feel like we were actually part of the company for a
day, not just visitors."
Stillwater Sciences: “It’s pretty cool that the place
we live is, like, such a hub for STEM companies... It
makes you want to contribute to the community
because there's literally so much, like STEM
companies, engineering companies, stuff like that.”
w/ ArmorX AI
w/ Stillwater Sciences
@Terabase Energy
w/ Terabase Energy
w/ Akorn Technology
CITY OF BERKELEY | OFFICE OF ECONOMIC DEVELOPMENT | 2024 Promoting equitable development
In 2024 OED partnered with the
Berkeley Chamber to provide
easy-to-digest information on how to
engage with the city and work, invest,
and grow a business in Berkeley.
A new Chamber
Doing Business in
Berkeley webpage, webinars, and
downloadable materials from the City of
Berkeley website now help local
business leaders navigate government
requirements for launching or
expanding a business in Berkeley.
In partnership with
Project Equity, OED offers
Berkeley businesses
support
with succession
planning and transition to
employee ownership.
CITY OF BERKELEY | OFFICE OF ECONOMIC DEVELOPMENT | 2024 Sustaining Berkeley’s Arts and Culture Sector
The City of Berkeley Civic Arts program provides grants to support a vibrant arts ecosystem, strengthen diverse cultural expressions, and ensure equitable access to arts and culture throughout Berkeley.
Civic Arts Grants Awarded in 2024 for deployment in 2025:
• 11 individual arts projects ($44,000)
• 34 community festivals ($199,680)
• 55 arts organizations ($444,799)
• 12 arts program grants ($60,000)
Leveraging Local Funds to Increase Arts Grants
Arts Program Grants. Leveraging local 1:1 matching funds, in 2024 the City received a $40,000 National Endowment for the Arts grant to continue the new Arts Program Grants category for a second year, providing an additional $80,000 to better support Berkeley arts and cultural programming.
Left: ¡BAILA! Community Dance Party at La Peña Cultural Center, general operating support grantee. Photo source: www.lapena.org.
Right: Berkeley Art Center, general operating support
grantee. Photo source: www.berkeleyartcenter.org.
Funding arts & culture in Berkeley
Source: Kwok, Berkeleyside
CITY OF BERKELEY | OFFICE OF ECONOMIC DEVELOPMENT | 2024 Public Art throughout Berkeley
In FY24, the Civic Arts Program implemented a
portfolio of public art projects valued at nearly
$700,000. Those projects included:
• Commissioned large bronze sculpture by
Mildred Howard. The piece was installed at
Adeline and Martin Luther King, Jr. Way and
unveiled at the 2024 Juneteenth celebration
dedication event.
• Restored a collaborative public art installation at
the Berkeley transit node created by muralist
John Wehrle and poet Betsy Davids, “Mak
Roote.” In recent years the artwork had suffered
from vandalism, as well as fading and staining
from overhead roadway runoff.
Left: “Delivered, Mable’s Promissory Note”, 2024 by Mildred Howard installed in South Berkeley. Photo: Ethan Kaplan.
Right: Restoration of “Mak Roote” murals by John Wehrle and Betsy Davids in West Berkeley in 2024. Photos: Mark Salinas
Investment in public art in Berkeley
Office of Economic Development (OED)
See the OED website for past Economic Dashboards and other economic reports:
https://berkeleyca.gov/doing-business/economic-
development/economic-dashboards-and-reports
Contact OED for more information:
[email protected]
City of Berkeley | Office of Economic Development | 510.981.7530 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Downtown Citywide
Ground Floor Commercial Business Mix
(by Square Footage), 2024 Q4
Vacant
Arts, Entertainment &
Recreation
Trade Services
Office / Other Non-Retail
Business & Professional
Services
Personal Services
Public & Nonprofit
Entities
Food & Beverage Services
Retail
Downtown: 2024 Snapshot
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, which occupy
Source: MuniServicesSource: Berkeley OED
15.3% of total ground floor
commercial space in the district,
compared to 4.8% citywide. As of
Q4 2024, the vacancy rate in
Downtown is 10.91%, an increase
from 10.78% in 2023, and above
the 9.9% seen during the first
year of COVID (2020). Sales tax
revenue generated by Food &
Beverage services reached its
nadir in 2021 ($565,561), but
has recently matched pre-COVID
levels with $1.17M generated in
2024 (a slight drop from $1.2M
in 2023).
Source: Berkeley OED
9.90%
15.66%
11.87% 10.
78% 10.91%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
2020 2021 2022 2023 2024
Ground Floor Commercial Vacancy Rate
(by Square Footage), 2020-2024
$0
$200,000
$400,000
$600,
000
$800,000
$1,000,000
$1,200,000
$1,400,000
2020 2021 2022 2023 2024
Sales Tax Revenue by Sector, 2020-2024
Business & Professional Services Food & Beverage
Other Non-Retail Personal Services
Retail
City of Berkeley | Office of Economic Development | 510.981.7530 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Elmwood Citywide
Business Mix (by Square Footage), 2024 Q4
Vacant
Arts, Entertainment &
Recreation
Trade Services
Office / Other Non-Retail
Business & Professional
Services
Personal Services
Public & Nonprofit Entities
Food & Beverage Services
Retail
Elmwood: 2024 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 district is characterized by a high concentration (29%) of Food & Beverage services and Personal Services (17.6%), and is a walkable, neighborhood-serving commercial district.
As of Q4 2024, the district’s vacancy rate by square footage is 6.9%.
Source: MuniServicesSource: Berkeley OED
Sales tax collected from the
Food and Beverage sector in
the Elmwood increased in
2024 to $229,309, from a low
of $140,812 in 2021. Sales tax
collected from the Retail
sector decreased slightly in
2024 to $103,201, but
remained above retail sales
tax collected in 2021
($88,709) when the pandemic
was in an acute phase.
10.90% 10.90%
7.66%
6.20% 6.92%
0%
2%
4%
6%
8%
10%
12%
14%
16%
2020 2021 2022 2023 2024
Ground Floor Commercial Vacancy Rate
(by Square Footage), 2020-2024
Source: Berkeley OED
$0
$50,000
$100,000
$150,
000
$200,000
$250,000
2020 2021 2022 2023 2024
Sales Tax Revenue by Sector, 2020-2024
Business & Professional Services Food & Beverage
Personal Services Retail
City of Berkeley | Office of Economic Development | 510.981.7530 North Shattuck: 2024 Snapshot
North Shattuck is one of Berkeley’s oldest commercial districts, just north of Downtown. The district is characterized by a high concentration of well-known, long-standing, and celebrated restaurants, including Chez Panisse 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 Q4 2024, the district’s vacancy rate by square footage is 1.95%, on par with the 1.9% calculated in 2023 Q4.
Source: MuniServicesSource: Berkeley OED
Sales tax collected from the
Food and Beverage sector in
North Shattuck increased in 2024
to $588,817 from its 2021 low
($298,196), and sales tax collected
from the retail sector increased
slightly in 2024 to $136,153 from
$134,219 collected in 2023.
Source: Berkeley OED
4.30% 4.29% 4.31%
1. 90% 1.95%
0%
1%
1%
2%
2%
3%
3%
4%
4%
5%
5%
2020 2021 2022 2023 2024
Ground Floor Commercial Vacancy Rate (by
Square Footage), 2020-2024
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Nor
th Shattuck Citywide
Business Mix (by Square Footage), 2024 Q4
Vacant
Arts, Entertainment &
Recreation
Trade Services
Office / Other Non-Retail
Business & Professional
Services
Personal Services
Public & Nonprofit Entities
Food & Beverage Services
Retail
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
2020 2021 2022 2023 2024
Sales Tax Revenue by Sector, 2020-2024
Business & Professional Services Food & Beverage
Other Non-Retail Personal Services
Retail
City of Berkeley | Office of Economic Development | 510.981.7530 San Pablo: 2024 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 (15.5%), including automobile services.
Source: MuniServicesSource: Berkeley OED
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 & Beverage
Services (8.9%) and a larger portion of
Personal Services (13.7%) than the city as
a whole. In 2024, the district’s vacancy
rate by square footage is 7.1%, down
from 15.6% in 2023. Retail Sales tax
revenue collected in 2024 has increased
to $772,703 since 2023 ($679,253) and
continues to be the largest source of tax
revenue for the area.
Source: Berkeley OED
4.90%
7.87%
10.79%
15. 55%
7.09%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
2020 2021 2022 2023 2024
Ground Floor Commercial Vacancy Rate
(by Square Footage), 2020-2024
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
San P
ablo Citywide
Business Mix (by Square Footage), 2024 Q4
Vacant
Arts, Entertainment &
Recreation
Trade Services
Office / Other Non-Retail
Business & Professional
Services
Personal Services
Public & Nonprofit Entities
Food & Beverage Services
Retail
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
2020 2021 2022 2023 2024
Sales Tax Revenue by Sector, 2020-2024
Business & Professional Services Food & Beverage
Other Non-Retail Personal Services
Retail
City of Berkeley | Office of Economic Development | 510.981.7530 Solano: 2024 Snapshot
Solano is a small district in North Berkeley, with a total of 148 commercial spaces and approximately 189 thousand square feet of commercial space. It shares a border with Albany and is situated next to a large Source: Berkeley OED
elementary school and an
active neighborhood of single-
family homes. The former Oaks
Theatre is now occupied by
The Oaks climbing gym that
opened in 2024. The district’s
vacancy rate by square footage
is 2.1%, a slight decrease from
2023 (2.6%).
Sales tax collected from the Food and Beverage sector along Solano Avenue increased by $3,084, from 2023 to 2024, and sales tax collected from the retail sector also increased from 2023, to $114,635.
Source: MuniServices
Source: Berkeley OED
6.70%
4.00% 3.70%
2. 60%
2.05%
0%
1%
2%
3%
4%
5%
6%
7%
8%
2020 2021 2022 2023 2024
Ground Floor Commercial Vacancy Rate
(by Square Footage), 2020-2024
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Sol
ano Citywide
Business Mix (by Square Footage), 2024 Q4
Vacant
Arts, Entertainment &
Recreation
Trade Services
Office / Other Non-Retail
Business & Professional
Services
Personal Services
Public & Nonprofit Entities
Food & Beverage Services
Retail
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
2020 2021 2022 2023 2024
Sales Tax Revenue by Sector, 2020-2024
Business & Professional Services Food & Beverage
Personal Services Retail
City of Berkeley | Office of Economic Development | 510.981.7530 South Berkeley: 2024 Snapshot
South Berkeley is a large district stretching over an area known for its cultural diversity and includes the Lorin District, the Sacramento Ave. corridor, and the South Shattuck area. South Berkeley includes car dealerships, which accrue retail sales tax revenue for the City.
Source: Berkeley OED
The area features a high
concentration of Personal
Services businesses (15.9% vs.
8.6% citywide) but is under-
served by Food & Beverage
services, which account for only
5.2% of ground floor commercial
space, as compared to 12.5%
citywide. As of Q4 2024, the
district’s vacancy rate by square
footage was 8.9%, a marked
decrease from 2023 (19.3%).
Source: MuniServices
Source: Berkeley OED
10.10% 8.84%
11.76%
19. 26%
8.86%
0%
5%
10%
15%
20%
25%
2020 2021 2022 2023 2024
Ground Floor Commercial Vacancy Rate
(by Square Footage), 2020-2024
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
So
uth Berkeley Citywide
Business Mix (by Square Footage), 2024 Q4
Vacant
Arts, Entertainment &
Recreation
Trade Services
Office / Other Non-Retail
Business & Professional
Services
Personal Services
Public & Nonprofit Entities
Food & Beverage Services
Retail
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
2020 2021 2022 2023 2024
Sales Tax Revenue by Sector, 2020-2024
Business & Professional Services Food & Beverage
Other Non-Retail Personal Services
Retail
City of Berkeley | Office of Economic Development | 510.981.7530 Telegraph: 2024 Snapshot
The Telegraph district has undergone significant change with respect to its ground floor inventory over the past several years. Food & Beverage services have shown a dramatic increase in the last decade, with 32% of Food & Beverage services accounting for ground floor commercial space in the district, as compared to 12.5%
Source: Berkeley OED
citywide. Telegraph’s ground floor
inventory of retail accounts for
37.2% of the business mix,
slightly more than the 31.3%
observed citywide. As of Q4
2024, the district’s ground floor
commercial vacancy rate of 9.9%,
was higher than 2023 (9.3%).
Food & Beverage services
outperform Retail with respect to
sales tax collected; Food &
Beverage collections increased to
$618,773 in 2024.
Source: MuniServices
Source: Berkeley OED
17.20%
12.59%
8.51% 9.
32% 9.94%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
2020 2021 2022 2023 2024
Ground Floor Commercial Vacancy Rate
(by Square Footage), 2020-2024
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Tel
egraph Citywide
Business Mix (by Square Footage), 2024 Q4
Vacant
Arts, Entertainment &
Recreation
Trade Services
Office / Other Non-Retail
Business & Professional
Services
Personal Services
Public & Nonprofit Entities
Food & Beverage Services
Retail
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
2020 2021 2022 2023 2024
Sales Tax Revenue by Sector, 2020-2024
Business & Professional Services Food & Beverage
Other Non-Retail Personal Services
Retail
City of Berkeley | Office of Economic Development | 510.981.7530 University: 2024 Snapshot
University Avenue, 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. Since 2019, Retail and Food & Beverage Services have generated
Source: Berkeley OED
the most sales tax
revenue for the district.
Retail sales tax collected
in 2024 decreased
slightly by $14,117 from
2023, and sales tax from
Food & Beverage stayed
steady. The 2024 vacancy
rate decreased year over
year from 17.7% in 2023
to 7.7% in 2024; the
lowest rate in five years.
Source: MuniServices
Source: Berkeley OED
11.00%
9.13%
12.81%
17. 66%
7.66%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
2020 2021 2022 2023 2024
Ground Floor Commercial Vacancy Rate
(by Square Footage), 2020-2024
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Uni
versity Citywide
Business Mix (by Square Footage), 2024 Q4
Vacant
Arts, Entertainment &
Recreation
Trade Services
Office / Other Non-Retail
Business & Professional
Services
Personal Services
Public & Nonprofit Entities
Food & Beverage Services
Retail
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
2020 2021 2022 2023 2024
Sales Tax Revenue by Sector, 2020-2024
Business & Professional Services Food & Beverage
Other Non-Retail Personal Services
Retail
City of Berkeley | Office of Economic Development | 510.981.7530 West Berkeley: 2024 Snapshot
West Berkeley represents all commercial spaces west of San Pablo Avenue, including 4th Street and the Gilman District. There are a number of major, large-floor-plate retailers, and a dense cluster of home supplies and construction businesses. There is also a higher percentage of non-retail commercial uses, including manufacturing and warehousing. Retail accounts for 46.4% of ground floor
commercial space in the district, as
compared to 31.3% citywide. West
Berkeley also has a smaller percentage of
square footage devoted to Food and
Beverage (8.2%) businesses than the
citywide rate of 12.5%. The commercial
vacancy rate in Q4 of 2024 is 6.5%, up
from 2023’s 2.1%. Sales tax revenue has
decreased or stayed steady in this area in
all categories including Retail where a
sales tax revenue decrease of $473,968
(-7.1%) YoY is observed.
Source: Berkeley OED Source: MuniServices
Source: Berkeley OED
3.70%
4.67%
5.23%
2. 14%
6.52%
0%
1%
2%
3%
4%
5%
6%
7%
2020 2021 2022 2023 2024
Ground Floor Commercial Vacancy Rate
(by Square Footage), 2020-2024
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
We
st Berkeley Citywide
Business Mix (by Square Footage), 2024 Q4
Vacant
Arts, Entertainment &
Recreation
Trade Services
Office / Other Non-Retail
Business & Professional
Services
Personal Services
Public & Nonprofit Entities
Food & Beverage Services
Retail
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
2020 2021 2022 2023 2024
Sales Tax Revenue by Sector, 2020-2024
Business & Professional Services Food & Beverage
Other Non-Retail Personal Services
Retail
City of Berkeley | Office of Economic Development | 510.981.7530 Neighborhood (C-N): 2024 Snapshot
Across Berkeley there are 11 smaller commercial pockets, zoned as “C-N” or “Neighborhood Commercial.” These areas are one or two block collections of commercial enterprises distributed throughout Berkeley.
Source: Berkeley OED
The “C-N” areas represent
nearly 190 commercial spaces,
and approximately 390K square
feet of commercial space.
The C-N areas collectively
generate 2.4% of the city’s total
sales tax. They also include a
large number of Personal
Services companies (32.8% by
square footage, compared to
8.6% citywide) and Public and
Non-Profit entities (24.6%
compared to 6.6% citywide).
The C-N vacancy rate is 2.8%.
These areas include commercial
nodes at the following
intersections:
• Claremont and Prince
• C
laremont and Tunnel
• College and Alcatraz
• Gilman and Curtis
• Hearst and Euclid
• Hopkins and El Dorado
• Hopkins and Monterey
• Martin Luther King Jr Way
(MLK) and Dwight
• MLK and Hearst
• MLK and Rose
• MLK and Virginia
Source: MuniServices
Source: Berkeley OED
7.30%
3.20%
2.31% 2. 63% 2.79%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
2020 2021 2022 2023 2024
Ground Floor Commercial
Vacancy Rate (by Square
Footage), 2020-2024
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
C-N C
itywide
Business Mix (by Square Footage), 2024 Q4
Vacant
Trade Services
Retail
Public & Nonprofit Entities
Personal Services
Office / Other Non-Retail
Food & Beverage Services
Business & Professional
Services
Arts, Entertainment &
Recreation
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
2020 2021 2022 2023 2024
Sales Tax Revenue by Sector, 2020-2024
Business & Professional Services Food & Beverage
Other Non-Retail Personal Services
Retail
C-N District Locations