Tuesday, March 10, 2026 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, March 10, 2026
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 and virtual attendance. Attend this meeting remotely using Zoom. 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: 160 609 0203. 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].
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The City Council may take action related to any subject listed on the Agenda.
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Tuesday, March 10, 2026 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.
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 5th day of March, 2026.
/s/ Adena Ishii, Mayor
Public Notice – this Proclamation serves as the official agenda for this meeting.
ATTEST:
Mark Numainville, City Clerk
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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Tuesday, March 10, 2026 AGENDA Page 3
to the City Clerk Department at 2180 Milvia Street. If you do not want your contact information included in the public record, please do not include that information in your communication. Please contact the City Clerk Department for further information.
Any writings or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection at the public counter at the City Clerk Department located on the first floor of City Hall located at 2180 Milvia Street, and through the City's online records portal:
https://records.cityofberkeley.info/.
Agendas, agenda reports, and revised/supplemental material may be accessed via the online agenda for this meeting at: berkeleyca.gov/council-agendas
and may be accessed at reference desks at the following locations:
City Clerk Department - 2180 Milvia Street, First Floor Tel: 510-981-6900, TDD: 510-981-6903, Fax: 510-981-6901 Email: [email protected]
Libraries: Main – 2090 Kittredge Street,
Claremont Branch – 2940 Benvenue, West Branch – 1125 University, North Branch – 1170 The Alameda, Tarea Hall Pittman South Branch – 1901 Russell
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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
March 10, 2026
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 2025 (Attachment 1), and the updated Commercial District Dashboards (Attachment 2).
CURRENT SITUATION AND ITS EFFECTS
Throughout 2025, the City of Berkeley continued to produce diverse economic activity, though progress by many measures has remained flat since 2024. Sales tax revenue across most industry sectors has increased slightly over the last year. The citywide ground floor inventory vacancy rate is 6.25 percent, a decrease of 1.25 percent from the rate observed in 2024. More than 365 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 ‘research and development’ or, 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 2025, much of which has been collected through on-the-ground fieldwork.
Key findings include:
Unemployment rates increased slightly; overall job growth declined.
Between November 2024 and November 2025, the total number of jobs located in the East Bay declined by 6,700, or 0.6 percent. The sectors with the highest year-over-year employment growth included Arts, Entertainment & Recreation (+9.2%), Education & Health Services (+4.9%), Government (+2.0%) and Real Estate & Rental Leasing (+1.6%). The countywide unemployment rate stayed the same at 4.7% in both 2024 and 2025. Berkeley’s unemployment rate rose modestly over the same period, from 4.4% to 4.7%. The statewide unemployment rate also stayed flat at 5.4%.
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The number of startups in Berkeley declined slightly, with software and healthcare and life sciences companies comprising more than two thirds of the total. In 2025, the City of Berkeley was home to approximately 370 innovation sector businesses across software, healthcare and life sciences, clean technology, hardware, education technology, food technology, and other science, technology, engineering, and math (STEM) industries. Of these businesses, 86% qualified as startups, defined as companies developing repeatable and scalable business models to bring innovative technology products or services to market that are not yet profitable. UC Berkeley innovation and entrepreneurship programs, along with citywide coworking spaces, accelerators, and incubators, help support and nurture these early-stage companies. Software and Healthcare and Life Sciences are the two largest sectors, each representing 35% of innovation businesses, together accounting for more than two thirds of the total.
Many startups in these sectors leverage artificial intelligence and machine learning to develop solutions that improve human health and longevity. The remaining innovation ecosystem consists of 13% CleanTech companies, 13% Hardware, 1% Education Technology, 1% Food Technology, and 3% other innovation industries.
Despite 2025 being another challenging year for fundraising globally, five Berkeley startups were acquired, several companies secured sizable venture capital (VC) investments, and 20 startups received government and philanthropic R&D grants. Pitchbook reports that “2025 recorded the lowest VC fundraising total since 2018” and artificial intelligence (AI) accounted for nearly two thirds of it, driven by a small number of large deals. Despite the odds, 88 Berkeley startups raised more than $1.5 billion in 2025 (an uptick from 2024), though more than half of this (53%, $812M) – is accounted for by the 3 largest deals: Rigetti Computing, KoBold Metals, and Terabase. In fact, most of the venture and seed financing deals were small: only about one-fifth (22%, or 15 of the 69) of the deals exceeded $20M. The median sized deal was for $6.75M; the most common deal size (mode) was $10M; and the majority (40 deals, 58%) were $10M or less each.
Some of the notable investments in Berkeley startups included:
o KoBold Metals (HQ in Berkeley) raised $280 million to continue advancing its mineral exploration and development projects using its proprietary AI platform. These minerals (specifically copper, lithium, nickel, and cobalt) are essential for the clean energy transition. o Rigetti Computing raised $350 million in its second public offering on the Nasdaq Stock Exchange (RGTI) to accelerate the commercial scale-up of its quantum computers. Globally, the United Nations deemed 2025 “the
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year of quantum” and locally OED arranged for a STEM CareerX tour with Berkeley High School (BHS) students at Rigetti’s Berkeley headquarters in mid-2025.
o Terabase raised $147 million to accelerate construction of utility-scale solar energy plants using the company’s AI/robotics-assisted assembly line from their downtown Berkeley headquarters in the Dharma College Center.
In 2025, the most common deals were in the tech (software) and healthcare/biotech areas. Five Berkeley companies also had a profitable exit in 2025: Urban Footprint, Arroyo, Meso, Read.cv, and Terrafuse AI were all acquired. Twenty Berkeley companies were also awarded nearly $40M in new R&D grants in 2025 (more than 2024!), including grants from the NIH, NSF, US Air Force, DoE, among others. Berkeley company Magnetic Tides received 3 NIH grants (valued at nearly $8.5M) to use non-invasive brain stimulation to help patients with neurological and psychiatric disorders including enhancing motor function in chronic stroke patients and treating depression). Ray Therapeutics received $8 million of grant funding from California Institute for Regenerative Medicine to support the company's ongoing clinical development of a drug (RTx- 015) for the treatment of retinitis pigmentosa, a progressive and debilitating inherited retinal disease that leads to blindness. In 2025, 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 for the third year in row. Office and lab vacancy rates in Berkeley increased. Overall office availability in Berkeley rose to 16.5% in Q3 2025 from the 14% observed in Q3 2024, though the figure is significantly lower than the 27.9% vacancy observed in neighboring Oakland. Asking rents for high quality office space in Berkeley stayed relatively consistent and were at $3.43 per square foot in Q3 2025 (a slight increase from 2024). Lab space in Q3, despite expanded inventory, remained at a premium in Berkeley, commanding rents of $6.61 per square foot (down slightly from $6.92 per square foot a year prior). The vacancy rate for Berkeley lab space is 51.6%, which has risen sharply in Berkeley in recent years, owing to the increase of new inventory from the Berkeley Commons development 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 2025, the citywide ground floor commercial vacancy rate decreased from last year (down from 7.5% to 6.25%). In 2025, almost all commercial districts saw a decrease in storefront vacancy rates except for the San Pablo and Telegraph districts which
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saw an increase in vacancies. San Pablo went from 7.1% in 2024 to 8.44% in 2025 and Telegraph went from 9.9% in 2024 to 10.45% in 2025. Downtown saw a decrease in vacancy rate from 10.9% to 9.68%; Elmwood went from 6.9% in 2024 to 1.35% in 2025; the North Shattuck and Solano districts saw slight decreases in vacancy rates (North Shattuck went from 2.0% to 1.72% and Solano went from 2.1% to 2.05% in 2025). South Berkeley went from 8.9% in 2024 to 6.76% in 2025; University went from 7.7% in 2024 to 3.34% in 2025; Neighborhood Commercial or “C-N” districts went from 2.8% to 1.58% in 2025 and West Berkeley went from 6.5% to 5.0% in 2025. 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 204,399 square feet of space and encompass more than 52 spaces of commercial inventory in flux in the city’s central business district. The presence of these spaces in 2025 continues to 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 decreased two tenths of a percent as a proportion of total commercial inventory from 2024 (now at 6.5%). Arts, Entertainment & Recreation decreased its share of total square footage with a drop of three tenths of a percent (now at 4.5%).
Personal Services occupancy has increased ever so slightly from 8.6% in 2024 to 8.7% in 2025, along with Public/Nonprofit Entities which increased to 7.7% this year from the 6.6% of inventory observed in 2024. Some neighborhood commercial districts including Downtown, North Shattuck, and Solano saw little change in Retail square footage over the last year, whereas Elmwood saw a larger 2% increase in Retail occupancy (now at 33%). Businesses in the Food & Beverage category saw a slight (one tenth of a percent) increase to occupy
12.6% of total ground floor square footage in the city in 2025. In 2025, the City of Berkeley’s sales tax revenue increased modestly compared to 2024. Year-to-date through the second quarter of 2025, annual sales tax revenue rose 0.2%, from $18.89 million to $18.92 million. Over the same period, Alameda County reported a 1.3% increase to $391 million, while California experienced a 0.04% decrease to $9.373 billion. Second-quarter 2025 sales tax revenue totaled $4.04 million, a 5% increase over the same quarter in 2024 ($3.94 million). The Retail and Food and Beverage subsectors were the largest contributors, accounting for 40% and 37% of total sales tax revenue, respectively. While most sectors recorded year-over-year gains in the second quarter, Personal Services experienced the largest increase (122%), driven primarily by gas station sales. The only decline occurred in the Retail category, where sales tax collections decreased 4% year over year.
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The housing market softened with lower sales volume, flattening rental costs and a modest decrease in Berkeley home sale prices year over year.
The median sale price of a single-family home in December 2025 was $1.265M and Berkeley’s home prices decreased by 3.8% over the same period. Forty-six single family homes were sold in Berkeley in December 2025, with an average of 28 days on the market. In the past five years (2021-2025), the median price of single-family homes in Berkeley hit an all-time high ($1.81M) in April 2022. For rentals, between December 2025 and the year prior (December 2024), Berkeley’s rents for studio apartments increased by 6%, rising to an average of $2,057 (from $1,928) per month. Rents for units with multiple bedrooms stayed flat or decreased slightly.
The City of Berkeley’s Office of Economic Development (OED) 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 25 active loans to Berkeley businesses totaling over $962,000 in outstanding principal. Both the RLF and RLP programs continue to be a favorable source of capital for Berkeley’s small businesses, and both funds are 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 2025, the Civic Arts Grants program funded 10 individual arts projects ($50,000 total awarded), 29 festivals ($158,000 total awarded), and 72 arts organizations ($449,714 total awarded). Today, the total Civic Arts grants award program is valued at more than half a million dollars ($660,000).
Other efforts include the development of a sophisticated marketing campaign to increase visibility, sales, and recognition for local Berkeley enterprises and their employees. In 2025, the #DiscoveredinBerkeley campaign continued to spotlight exceptional, values-driven Berkeley companies that make Berkeley residents, business owners, community members, and workers proud. To date, the campaign has made nearly 4.6 million impressions and registered more than 187,000 concrete engagements online.
In 2025, OED continued to offer assistance with Green Business Certification and expanded support for sustainable business networks, including Berkeley’s six formal Business Improvement Districts (BIDs) and numerous merchant organizations citywide. That same year, the Keep Innovation in Berkeley zoning update went into effect, enabling over-the-counter zoning approvals for research and development (R&D) uses under 20,000 square feet in key commercial corridors near campus, while also reducing restrictions on where laboratories using Biosafety Level 2 organisms may locate. In addition, the new Manufacturing - Research and Development (M-RD) zoning district was
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established to encourage redevelopment of the 11.5-acre site in West Berkeley at the former Berkeley Forge & Tool and Pacific Steel Casting plant at Gilman Street and Eastshore Highway. The M-RD zoning district supports a wide range of modern manufacturing activities and positions the site for long-term economic revitalization. These changes increase opportunities for firms seeking to establish or expand operations in Berkeley.
In September of 2025, in partnership with the Berkeley Chamber of Commerce, OED revived the Small Business Forum with the theme “doing business in uncertain times.” Over 100 Berkeley businesses attended and learned about the unique programs the City offers registered Berkeley businesses. Attendees also received expert guidance on marketing resources (Visit Berkeley, Berkeley Chamber, Discovered in Berkeley and the Green Business Network), access to capital (Working Solutions), disaster preparedness (Berkeley Office of Emergency Services) and succession planning (Project Equity). The event offered valuable insights, practical tools, and connections to help Berkeley’s small businesses adapt and thrive.
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 200 Berkeley High School student-visits at 10 “STEM CareerX Tours” at Berkeley companies in 2025. 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.
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 2025 (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. OED 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
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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, 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 2025, 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 AND CLIMATE IMPACTS
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.
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 Reuel Cooke, Office of Economic Development (510) 981-2490 Attachments:
1: Citywide Economic Dashboard
2: Commercial District Dashboards
2025 Economic Dashboard
Office of Economic Development
1
CITY OF BERKELEY | OFFICE OF ECONOMIC DEVELOPMENT | 2025 Table of Contents
Citywide Economic Dashboard
DEMOGRAPHIC PROFILE
• People and Economy
• Housing and Education
3-4
EMPLOYMENT ACTIVITY
• Job Growth, Unemployment, Top 25 Employers
5-6
SECTOR SNAPSHOTS
• Hospitality
• Innovation and Startups
8-10
COMMERCIAL ACTIVITY
• Trends and Transactions – Office, Commercial Inventory • Commercial Districts – Vacancy Rates, Occupancy by Business Type • Future Development
• Sales Tax Revenues
11-16
HOUSING
• Development Pipeline and Construction
• Rental Costs and Sale Prices
17-18
OED EFFORTS TO SUPPORT ECONOMIC SUSTAINABILITY
• Financing Small Businesses
• Marketing Businesses - #DiscoveredinBerkeley
• Enabling Business Networks
• Greening Business Practices
• Developing and Equitable Economy and Future Talent Pipeline • Strengthening Connections with UC BERKELEY
• Funding Arts and Culture
• 2025 Highlights
19-27
CITY OF BERKELEY | OFFICE OF ECONOMIC DEVELOPMENT | 2025 Demographic Profile – People & Economy
City of Berkeley | 2025
Data sources: ACS 2024; City of Berkeley; estimated proprietary Claritas/Esri consumer spending data (2025) 121,749
Population
33.4 Median age
54%
Employment rate
4.7%
Unemployment rate
13,400
Businesses
$4.5B
Spending power
$103,727
Median household income
47,862
Total households
CITY OF BERKELEY | OFFICE OF ECONOMIC DEVELOPMENT | 2025 Demographic Profile – Housing & Education
City of Berkeley | 2025
54,202
Housing units
75.2%
Bachelor’s degree or higher (age 25+)
45.9%
Homeownership rate
$1,227,500
Median home sale price
60%
Renter-occupied households
42.6%
Graduate or professional degree
45,882
UC Berkeley student enrollment
Data sources: ACS 2024; City of Berkeley; UC Berkeley
CITY OF BERKELEY | OFFICE OF ECONOMIC DEVELOPMENT | 2025 Year-over-Year Change in East Bay Employment by Sector
(Nov. 2024 – Nov. 2025)
Employment Activity
East Bay job growth by sector & unemployment trends
Unemployment Rates show slight increase year-over-year:
Source: Labor Market Information (LMI-EDD) for East Bay (Alameda and Contra Costa Counties), December 2025. 2024 2025
Ca
lifornia 5.4% 5.4%
Alameda County 4.7% 4.7%
Berkeley 4.4% 4.7%
Job Growth
Between November 2024 and November 2025, the number of jobs located in the East Bay declined by 6,700 jobs, a decrease of 0.6%.
Job losses were concentrated in professional services and manufacturing, while job growth was narrowly driven by health care and social assistance.
Despite overall declines, private education and health services added 11,600 jobs, accounting for roughly 90 percent of the region’s net year-over-year growth.
Sector (in the East Bay)
% Change
Ye
ar over
Year
% of Total
East Bay
Jobs
Arts, Entertainment & Recreation 9.2% 1.7%
Educational & Health Services 4.9% 20.8%
Government 2.0% 1.6%
Real Estate & Rental & Leasing 1.6% 14.5%
Retail Trade -0.3% 8.9%
Transportation & Warehousing -0.4% 3.9%
Architectural, Engineering & Related Services -0.6% 1.5% Leisure and Hospitality -2.3% 9.0%
Construction -2.6% 6.1%
Administrative & Support Services -4.0% 4.7%
Accommodation & Food Services -4.6% 7.3%
Manufacturing -5.4% 8.0%
Computer Systems Design & Related Services -6.1% 1.4%
CITY OF BERKELEY | OFFICE OF ECONOMIC DEVELOPMENT | 2025 Employment Activity
Largest employers
Top 25 Berkeley Employers (# of employees) Berkeley’s top 25 employers are 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, Target and Whole Foods. New to the top 25 list in 2025: Form Energy, a manufacturing and technology company and Boichik Bagels.
Source: State of California Employment Development Department (EDD), Q1 2025
COMPANY SECTOR
BACKROADS, INC. RECREATION
BAYER CORP BIOTECH
BERKELEY BOWL PRODUCE, INC. FOOD AND BEVERAGE
BERKELEY CEMENT, INC. CONSTRUCTION
BERKELEY CITY COLLEGE EDUCATION
BERKELEY REPERTORY THEATRE ARTS & ENTERTAINMENT
BERKELEY UNIFIED SCHOOL DISTRICT EDUCATION
BOICHIK BAGELS FOOD AND BEVERAGE
CITY OF BERKELEY GOVERNMENT
FIELDWORK BREWING CO FOOD AND BEVERAGE
FORESIGHT MENTAL HEALTH HEALTHCARE
FORM ENERGY, INC. MANUFACTURING/TECHNOLOGY
INSIGHT HOUSING SOCIAL SERVICES
KAISER PERMANENTE MEDICAL GROUP, INC. HEALTHCARE
LAWRENCE BERKELEY NATIONAL LAB LABORATORY
LIFELONG MEDICAL CARE HEALTHCARE
OC JONES & SONS CONSTRUCTION
SUTTER HEALTH HEALTHCARE
TARGET CORP RETAIL
TECHNICAL SAFETY SERVICES, INC BIOTECH/MANUFACTURING
THE WRIGHT INSTITUTE EDUCATION
UNIVERSITY OF CALIFORNIA EDUCATION
UPSIDE FOODS BIOTECH/R&D
WHOLE FOODS MARKET CALIFORNIA INC FOOD AND BEVERAGE
YMCA OF THE CENTRAL BAY AREA RECREATION
CITY OF BERKELEY | OFFICE OF ECONOMIC DEVELOPMENT | 2025 Sector Snapshots
Hospitality
Hotel Occupancy & Inventory
Food & Beverage Services • 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.
In 2025, Berkeley outperformed neighboring cities, ranking first in occupancy and second in ADR, behind only San Francisco. It was one of just two markets to record growth in demand, occupancy, and revenue, reflecting a strong and balanced hospitality market.
• Berkeley hotel occupancy remained
hi
gher than other Bay Area cities,
supported by 1.6 million overnight
visitors and $160.8 million in visitor
spending.
• Average occupancy increased slightly
from 71.0% in 2024 to 71.5%
in 2025 with
weekend nights driving peak demand.
• The average daily rate rose to $190,
r
eflecting continued pricing strength.
• Hotel revenue reached $76 million,
representing a 3.3% increase over 2024.
• Domestic visitors stayed an average of 3.3
nights, with ~79.5% of staying overnight.
Nearly half of visitors originated from
California, followed by Texas, Florida,
Illinois, and Pennsylvania.
Visitor Marketing and Business Support
• VisitBerkeley.com
pages including the Event Calendar, Food &
Drinks, and Where to Stay, continue to promote leisure travel. • The Berkeley Bucks e-gift card program generated $16.5K in redemptions in 2025, supporting local business.
Hotel Occupancy & Inventory
• The Bioneers Conference attracted nearly 2,000
visitors to Downtown Berkeley in March 2025
and will return March 26-28, 2026.
• The 11th annual Berkeley Restaurant Week highlighted
more than 50 local restaurants, supporting visitation
during the spring shoulder season.
Demand Drivers and Citywide Activation
2025 Performance Overview
CITY OF BERKELEY | OFFICE OF ECONOMIC DEVELOPMENT | 2025 Sector Snapshots
Startups & innovation businesses
86%
6%
7% 1%
1%
INNOVATION COMPANIES BY
GROWTH STAGE
Startup Established company
Consulting company Subsidiary company
Incubator or coworking facility
Berkeley has almost 370 innovation companies citywide; the vast majority are startups (86%).
Pitchbook ranked UC Berkeley #1 in venture-funded startups founded by undergrad alumni from any university worldwide AGAIN. 0 50
100
150
200
250
300
350
400
2013 2015 2017 2019 2021 2023 2025
NUMBER OF STARTUPS BY YEAR*
*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.
Sources: City of Berkeley Office of Economic Development (OED), UC Berkeley IPIRA, Pitchbook
CITY OF BERKELEY | OFFICE OF ECONOMIC DEVELOPMENT | 2025 Despite another
tough year for
fundraising,
5 Berkeley startups
were acquired and
88 raised:
• $1.54 B in
public offerings,
venture and seed
capital
• $39.6 M in
government R&D
grants
Sector Snapshots
Startup sectors & wealth creation
35%
13%
13%
35%
3%
1% 1%
INNOVATION COMPANIES BY
INDUSTRY
BioTech & Healthcare CleanTech
Hardware Software
Other Education
Food & Beverage
Berkeley Innovation Sector
2025 Fundraising Highlights
• : $350M in a second public offering on the Nasdaq to accelerate the commercial scale-up of its
quantum computers
• : $280M to continue using AI tools to search for critical metals needed for the clean
energy transition (copper, lithium, nickel,
cobalt).
• : $147M to accelerate co
nstruction of utility-scale solar energy plants
using AI/robotics-assisted technologies
• : $8.5M in NIH R&D grants to use
non-invasive brain stimulation to help
patients with neurological and psychiatric disorders
CITY OF BERKELEY | OFFICE OF ECONOMIC DEVELOPMENT | 2025 180
UC Berkeley-Affiliated Startups
130
UCB Innovation & Entrepreneurship Initiatives
$217,000
Average Annual Salary
City of Berkeley
500 - 640
Jobs
$100 - $130
Million
Payroll
$200 - $250
Million
Economic Impact
2.05x
Total Employment
Multiplier
Innovation & Entrepreneurship Programs equip entrepreneurs from early formation to scale
Source: UC Berkeley Institute for Business Innovation Economic Impact Report FY 2024-2025 Data Sector Snapshots
Local impact of UC Berkeley’s entrepreneurship initiatives
CITY OF BERKELEY | OFFICE OF ECONOMIC DEVELOPMENT | 2025 Commercial Activity
Trends & transactions - office
Q3 2025 Office Market, Berkeley Indicators
Total Inventory 2,945,215
Availability Rate 16.5%
Average Asking Rent $3.38/ SF
Source: Newmark Cornish & Carey, 3Q25 Greater Oakland Office Market Report Office Availability Rate, East Bay Cities
Q3 2021 – Q3 2025
The number of office jobs in the East Bay has yet to recover to pre- pandemic levels, with about 30 thousand fewer office-using jobs. Office- based employment is just below early 2015 levels. Leasing activity by square footage is on track to reach its highest level since 2021. This along with a slight decrease in vacancy is a positive sign that underscores strengthening demand and growing confidence in the market. Tenant demand continues to focus primarily on spaces 10,000 square feet or less, highlighting sustained interest from small to mid- sized companies.
Source: Newmark Cornish & Carey, 3Q25 Greater Oakland Office Market Reports 0%
5%
10%
15%
20%
25%
30%
35%
40%
3Q21 4Q
21 1Q22 2Q22 3Q22 4Q22 4Q23 4Q24 1Q25 2Q25 3Q25
Alameda Berkeley Emeryville Oakland Richmond
CITY OF BERKELEY | OFFICE OF ECONOMIC DEVELOPMENT | 2025 Commercial Activity
Trends & transactions – commercial inventory
Together, three sectors (Food & Beverage,
Retail, and Office/Other Non-Retail)
comprised 59.4% of total 2025 ground floor
commercial inventory. Pending
developments recorded in the Office/Non-
Retail category have dropped to (15.7%)
since the peak of 2023 (20.8%), as some
development projects were completed and
opened for occupancy in the past year. In
2025, both Retail and Food & Beverage as a
percentage of total square footage were
mostly unchanged from the year prior (both
changed by a tenth of a %), but Retail as a
total percentage of ground floor inventory
has trended downward since 2021. The
Personal Services category at 8.7%, Business
& Professional Services (6.5%) and Public
and Non-Profit Entities at 7.7% were the
next largest categories by square footage.
0%
5%
10%
15%
20%
25%
30%
35%
40%
2021 2022 2023 2024 2025
Citywide Commercial Inventory by
Select Categories & Square Footage, 2021-2025
Food & Beverage Services Retail Office/ Other Non-Retail
CITY OF BERKELEY | OFFICE OF ECONOMIC DEVELOPMENT | 2025 Commercial Activity
Business district vacancy rates
Vacancy Rates by District, Calculated by Square Footage, 2020-2025 Citywide, the ground floor commercial vacancy rate has decreased to 6.25%*, a drop of
1.25% since Q4 2024. Almost all commercial districts saw a decrease in storefront vacancy rates with the exception of the San Pablo and Telegraph districts which saw an increase in vacancy rates.
Photos: Top: Café Brusco; Bottom: Green Leaf Market 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.
District 2021 2022 2023 2024 2025 Year Over Year
Change
Downtown 15.7% 11.9% 10.8% 10. 9% 9.68%
Elmwood 10.9% 7.7% 6.2% 6.9% 1.35%
North Shattuck 4.3% 4.3% 1.9% 2.0% 1.72%
San Pablo 7.9% 10.8% 15.5% 7.1% 8.44%
Solano 4.4% 3.7% 2.6% 2.1% 2.05%
South Berkeley 8.8% 11.8% 19.2% 8.9% 6.76%
Telegraph 12.6% 8.5% 9.3% 9.9% 10.45%
University 9.1% 12.8% 17.7% 7.7% 3.34%
Neighborhood Commercial (C-N) 3.2% 2.3% 2.6% 2. 8% 1.58% West Berkeley 4.7% 5.2% 2.2% 6.5% 5.0%
Citywide Avg. 8.3% 8.4% 8.1% 7. 5% 6.25%
CITY OF BERKELEY | OFFICE OF ECONOMIC DEVELOPMENT | 2025 Commercial Activity
Ground floor space occupancy by business type
*
• Retail comprises the most significant
percentage (31%) of ground floor
space across Berkeley commercial
districts, with Food & Beverage al
so
representing a large portion (13%) of
occupancy, especially in the Telegraph,
Elmwood, Solano, and North Shattuck
districts.
• Downtown, West Berkeley and Sa
n
Pablo have the dominant share of
Office/Other Non-retail (18%, 20% and
20%) due to the high level of
development activity (“leased or
pending development” is included in
this category).
• West Berkeley (including 4
th Street)
has the highest concentration of Retail
(46%).
• C-N has the highest rate of Personal
S
ervices (21%), followed by Elmwood
(18%) and Solano (17%).
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, 2025 Q4
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 | 2025 Commercial Activity
Future development
New Buildings Status
UC Berkeley is now the largest
rate payer to the Downtown
Berkeley BID* –
with a number of planned and
recently completed projects
surrounding the campus are
providing spaces to conduct
research, learn, and live.
Flying Horse Investments
purchase of the long vacant
Shattuck Plaza Retail block will
renovate and revitalize it with
new shops.
Berkeley Commons remains
unoccupied and efforts to find
tenants are ongoing.
* BID – Business Improvement District, a fund
that supplements public services within
geographically defined boundaries.
Bakar Labs for Energy & Materials
Innovative Genomics Institute (IGI) – B akar Labs
Shattuck Plaza Retail Frontage – Flying Horse Investments
CITY OF BERKELEY | OFFICE OF ECONOMIC DEVELOPMENT | 2025 Commercial Activity
Sales tax revenue trends
Total Annual Sales Tax Revenue (Q2 + previous three quarters) July ’23 to June ‘24 July ‘24 to June ‘25 % Change (Year over Year) City of Berkeley $18,893,092 $18,922,439 .2%
Alameda County (total including cities) $385,954,179 $391,157,971 1.3% State of California $9,376,883,707 $9,373,547,594 -0.04% In Q2 2025, Retail remained the largest contributor to Berkeley’s sales tax revenue (40 percent), followed by Food & Beverage (37 percent). Sales tax revenue increased 5 percent compared to Q2 2024, with growth observed across most business categories. Personal Services experienced the largest increase (122 percent), driven primarily by gas station sales. The only decline occurred in the Retail category where collections decreased by 4 percent year-over-year.
Source: MuniServices, Quarter 2 (Apr-June) 2020 to 2025, Nominal Values $2,628,526
$3,095,449
$4,470,
298
$3,641,594
$3,949,860 $4,041,581
$-
$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
2020 2021 2022 2023 2024 2025
Total City of Berkeley Q2 Sales Tax Revenues
$-
$500,000
$1,000,
000
$1,500,000
$2,000,000
$2,500,000
2020 2021 2022 2023 2024 2025
Berkeley Q2 Sales Tax Revenue by Business Category
Business & Professional Services Food & Beverage Services Other Non-Retail Personal Services
Retail
CITY OF BERKELEY | OFFICE OF ECONOMIC DEVELOPMENT | 2025 Housing
Development pipeline & construction
Pipeline & Construction Highlights
Source: SF YIMBYSources: City of Berkeley Department of Planning and Development, December 2025; Map OED.
In 2025, applicants submitted land
use permit applications for 11
distinct projects representing a total
of 1,687 new housing units. The
plans span several neighborhoods
and are typically close to transit
corridors and the UC Berkeley
campus, the largest is a 28-story
residential tower at 1998 Shattuck
(599 units) and Berkeley Way (see
image on bottom right corner).
Berkeley’s Large Residential Developments, Approved 2004 & 2025 Approved Housing Units 2025
Approved Housing Units 2024
Legend
2200 Bancroft Way 1998 Shattuck
2190 Shattuck2425 Durant
CITY OF BERKELEY | OFFICE OF ECONOMIC DEVELOPMENT | 2025 Housing
rental costs & sale prices
Sources: Redfin, Apartment List, Zumper, MLS, Rent Cafe, and City of Berkeley Rent Stabilization Board In 2025, Berkeley’s housing market reflects stabilization rather than growth. There were 46 single family homes sold in December of 2025, up from 37 in December of 2024. Home prices for single family homes remain high but have leveled off following post-pandemic exuberance in 2022, and rental prices, particularly for 3 bedrooms, and 1-bedroom apartments are down slightly from their 2024 peak.
Home sales soften, sale prices decrease, rental prices flatten $-
$1,000.00
$2,000.
00 $3,000.00
$4,000.00
$5,000.00
2021 2022 2023 2024 2025
Monthly Median Rents By Unit Type, 2021-2025
Studio Apartment 1 Bedroom 2 Bedroom 3 Bedroom
$1,417,500.00
$1,810,000
$1,240,000
$1,430,000
$1,265,000
2021 2022 2023 2024 2025
Median Sale Price, Single Family Homes, 2021-2025
Median Sale Price, Single-Family
Homes, Dec. 2025
Alameda $987,500
Albany $1,125,000
Berkeley $1,265,000
El Cerrito $1,194,500
El Sobrante $575,000
Emeryville $439,000
Oakland $700,000
Richmond $635,000
Piedmont $2,375,000
San Leandro $775,000
Source: Realtor.com
CITY OF BERKELEY | OFFICE OF ECONOMIC DEVELOPMENT | 2025 Revolving Loan Fund Portfolio
(RLF)
Active
Lo
ans
Number of RLF Loans 7
RLF $ Deployed $616,000
COVID-19 Resiliency Loan Program
Portfolio (RLP)
Active
Lo
ans
Number of RLP Loans 18
RLP $ Deployed $346,000
Supporting Berkeley’s existing small businesses
The Resiliency Loan Program (RLP) program, also administered by Working Solutions, a Community Development Financial Institution (CDFI), was established in 2020 with federal CARES Act funding 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 2025
Source: Berkeley OED, Working Solutions December 2025
Financing small businesses through the
Revolving Loan Fund & Resiliency Loan Program
Spotlight on the newest Berkeley RLF Borrower –Kanlaya Palivan, owner of Lao Garden, opened her restaurant on San Pablo Avenue in West Berkeley in January 2025 with financing assistance from Berkeley’s Revolving Loan fund.
The Revolving Loan Fund (RLF) p
rogram was seeded by a grant to the city
in 1980 from the federal Economic Development Administration (EDA).
The RLF fund was defederalized in 2024, and as of 2025 is administered by Working Solutions, which provides a much more streamlined experience for Berkeley borrowers, including the ability to make online payments.
Source: East Bay Nosh, Aug. 2025
CITY OF BERKELEY | OFFICE OF ECONOMIC DEVELOPMENT | 2025 Marketing businesses #DiscoveredinBerkeley
@ Ciel Creative Space in West Berkeley
The #DiscoveredinBerkeley marketing campaign highlights local businesses across a range of sectors, including food and beverage, retail, arts and crafts, and health services, helping connect residents and visitors with Berkeley-based businesses.
Since 2025, the #DiscoveredinBerkeley campaign has:
• Generated approximately 4.6 million impressions and 187,000 engagements • Driven 17,317 unique page views on Berkeleyside articles, with a 0.27 percent click-through rate, exceeding the site average • Reached 3,000 users through in-story links to featured businesses • Grown the @DiscoveredinBerkeley Instagram account by 377 followers (1,852 total) • Attracted nearly 5,400 users to the #DiscoveredinBerkeley website
CITY OF BERKELEY | OFFICE OF ECONOMIC DEVELOPMENT | 2025 OED supports local business improvement districts (BIDs), Visit Berkeley, and the Berkeley Chamber through the Berkeley Business District Network (BBDN), strengthening coordination, shared learning, and long-term district sustainability across Berkeley.
Coming in 2026: OED will support 10-year strategic planning and district renewal activities for the Downtown and Telegraph BIDs.
Enabling sustainable business networks
Map of Berkeley’s Commercial Districts
Berkeley Business District Network Partners
CITY OF BERKELEY | OFFICE OF ECONOMIC DEVELOPMENT | 2024 Internal
184 Berkeley companies have registered
for California Green Business Program
certification. 81 are currently green
business certified.
In 2025:
• 13
new green businesses certified
• 11 green businesses recertified
• 2,839,424 gallons of water saved
• 2,230,936 kWh of electricity
conserved
• 234,713 lbs of solid waste diverted
• 1,071 gallons of fuel saved
Greening local business practices
Green Businesses in Berkeley Going Green Helps Companies Achieve Environmental Benefits and Cost Savings
See Berkeley Green Businesses at www.greenbusinessca.org.
Recent Certifications
CITY OF BERKELEY | OFFICE OF ECONOMIC DEVELOPMENT | 2025 Deepening and diversifying Berkeley’s
talent pipeline
OED and the Institute for STEM Education at Cal State University arranged 200 Berkeley High School student visits to 10 STEM career exploration tours in 2025. These tours gave students hands-on exposure to how science, technology, engineering, and math (STEM) skills are applied in the workplace, as part of the Berkeley Startup Cluster’s Berkeley Ventures, Berkeley Values initiative.
Student Quotes:
“From every visit I’ve attended I learned
that
everyone starts from scratch and
tries their best to achieve what they
wanted to do in their company. Also,
being a good critical thinker plays a big
role as a STEM major.”
“There’s so many pathways within STEM
that I truly believe there’s a path for
everyone.”
“The experience made me feel calmer
and less anxious about the future,
realizing that there are many ways to
build a career path.”
Type Five
Arris Composites
Copper
Rigetti
Participating
Berkeley –based
Companies:
Arris Composites
Bayer
Berkeley SkyDeck
Copper
Form Energy
Magnetic Tides
Magnitude.io
Rigetti Computing
Type Five
Windscape.ai
100%
Recommend
participating in
company visits
*Based on post-visit
student surveys Form Energy
CITY OF BERKELEY | OFFICE OF ECONOMIC DEVELOPMENT | 2025 Strengthening City - University Connections
Berkeley Bio Showcase at JPM
Healthcare Conference
SCET Campuswide
En
trepreneurial Mixer
SCET Challenge Lab,: Designing Startups to Transform Society Demo Night with
SkyDeck Investors
Berkeley Civic Innovation Challenge w/ Big Ideas
Berkeley Institute for Business Innovation UCB
I&E Economic Impact team
CITY OF BERKELEY | OFFICE OF ECONOMIC DEVELOPMENT | 2025 Sustaining Berkeley’s Arts and Culture Sector
The City of Berkeley Civic Arts program provides nearly $660,000 in direct grants to support a vibrant arts ecosystem, strengthen diverse cultural expressions, and ensure equitable access to arts and culture throughout Berkeley.
Public Art
Gallery Exhibits: The Cube
Space Gallery on Allston Ave in
the Downtown Arts District
hosted four shows in 2025
including Après moi, le déluge
by Mary Anne Kluth, (pictured).
New Commissions: Sorell
Raino-Tsui’s mosaic artwork
South Berkeley Shines 2 was
selected for the Martin Luther
King Jr. Youth Services Center/
Young Adult Project (MLK/YAP)
building in Gove Park at 1730
Oregon Street (design pictured
at left).
Clockwise from top Left: New
Apollo Youth Symphony Orchestra,
general operating support grantee.
Berkeley Bird Festival, community
festivals grantee. Nimisha
Doongarwal, individual artist
grantee. Girls Garage, general
operating support grantee.
Funding arts & culture in Berkeley
Civic Arts Grants Awarded in
2025 include:
10 Individual Artist Grants (total $50,000)
29 Community Festivals (total $158,500)
72 Arts Organizations General Operating
Support (total $449,714)
CITY OF BERKELEY | OFFICE OF ECONOMIC DEVELOPMENT | 2025 2025 Highlights
2025 Highlights• 500 ATTENDEES at 30
Manufacturing Week tours
(Oct. 2025)
• 300+ STARTUPS engaged
through Berkeley Startup
Cluster programming
• 200 SMALL BUSINESSES
served through the OED Small
Business Forum (Sept. 2025)
• 10 COMMERCIAL
DISTRICTS
supported
through coordination and
technical assistance
(representing ~3,000 brick-and-
mortar businesses)
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 Downtown: 2025 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
15.34% of total ground floor
commercial space in the district
compared to 4.46% citywide. As
of Q4 2025, the vacancy rate in
Downtown is 9.68%, a decrease
from 2024’s (10.91%) and lower
than 2021’s (15.66%). Sales tax
revenue generated by Food &
Beverage services was lowest in
2021 with $565,561 but has
steadily increased with $1.26M
generated in 2025 (a slight
increase from 2024’s $1.16M
generated).
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
2021 2022 2023 2024 2025
Sales Tax Revenue by Sector, 2021-2025
Business & Professional Services Food & Beverage
Other Non-Retail Personal Services
Retail
Source: Berkeley OED
15.66%
11.87% 10.78% 10. 91%
9.68%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
2021 2022 2023 2024 2025
Ground Floor Commercial Vacancy Rate (by
Square Footage), 2021-2025
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Dow
ntown Citywide
Ground Floor Commercial Business Mix
(by Square Footage), 2025 Q4
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 | 510.981.7530 Elmwood: 2025 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 (30%) of Food & Beverage services and Retail (33.6%), and is a walkable, neighborhood-serving commercial district. As of Q4 2025, the district’s vacancy rate by square footage is 1.35% .
Source: MuniServicesSource: Berkeley OED
Sales tax collected from the
Food and Beverage sector in
the Elmwood increased in
2025 to $238,848, from a low
of $140,812 in 2021. Sales tax
collected from the Retail
sector increased slightly in
2025 to $123,301 and remains
slightly above retail sales tax
collected in 2022 ($121,657)
the second highest point in
the past five years.
Source: Berkeley OED
$0
$50,000
$100,000
$150,
000
$200,000
$250,000
$300,000
2021 2022 2023 2024 2025
Sales Tax Revenue by Sector, 2021-2025
Business & Professional Services Food & Beverage
Other Non-Retail Personal Services
Retail
10.90%
7.66%
6.20% 6.92%
1.35%
0%
2%
4%
6%
8%
10%
12%
14%
16%
2021 2022 2023 2024 2025
Ground Floor Commercial Vacancy Rate (by
Square Footage), 2021-2025
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
El
mwood Citywide
Business Mix (by Square Footage), 2025 Q4
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 | 510.981.7530 North Shattuck: 2025 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 2025, the district’s vacancy rate by square footage is 1.72%, a slight decrease from 1.95% in 2024 Q4.
Source: MuniServicesSource: Berkeley OED
Sales tax collected from the Food
and Beverage sector in North
Shattuck increased in 2025 to
$624,286, from its 2021 low
($298,196), and sales tax collected
from the retail sector increased
slightly in 2025 to $139,284 from
$136,153 collected in 2024.
Source: Berkeley OED
$0
$100,000
$200,000
$300,
000
$400,000
$500,000
$600,000
$700,000
2021 2022 2023 2024 2025
Sales Tax Revenue by Sector, 2021-2025
Business & Professional Services Food & Beverage
Other Non-Retail Personal Services
Retail
4.29% 4.31%
1.90% 1.95% 1.72%
0%
1%
1%
2%
2%
3%
3%
4%
4%
5%
5%
2021 2022 2023 2024 2025
Ground Floor Commercial Vacancy Rate (by
Square Footage), 2021-2025
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
No
rth Shattuck Citywide
Business Mix (by Square Footage), 2025 Q4
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 | 510.981.7530 San Pablo: 2025 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 (15.4%), 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 (9.6%) and a larger portion of
Personal Services (15.1%) and
Office/Other Non-Retail (20.5%) than the
city as a whole. In 2025, the district’s
vacancy rate by square footage is 8.44%,
up from 7.09% in 2024. Retail Sales tax
revenue collected in 2025 has decreased
to $674,564 since 2024 ($772,703) yet
this sector still continues to be the largest
source of tax revenue for the district.
Source: Berkeley OED
$0
$200,000
$400,000
$600,
000
$800,000
$1,000,000
$1,200,000
2021 2022 2023 2024 2025Sales Tax Revenue by Sector, 2021-2025 Business & Professional Services Food & Beverage
Other Non-Retail Personal Services
Retail
7.87%
10.79%
15.55%
7.09% 8.44%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
2021 2022 2023 2024 2025
Ground Floor Commercial Vacancy Rate (by
Square Footage), 2021-2025
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Sa
n Pablo Citywide
Business Mix (by Square Footage), 2025 Q4
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 | 510.981.7530 Solano: 2025 Snapshot
Solano is a small commercial district in North Berkeley, with a higher concentration (24.09%) of Food & Beverage Services and Personal Services (17.02%) than the city as a whole (12.54%, Food & Beverage, 8.76% for Personal Services). It shares a border with Albany and is situated next to a Source: Berkeley OED
large 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 late 2024. The district’s
vacancy rate by square footage
is 2.05%, no change from 2024.
Sales tax collected from the
Food and Beverage sector along Solano Avenue increased by $3,511, from 2024 to 2025, as did personal services (up by $40,528) year over year. Total sales tax collected on Solano increased from 2024, to a total of $426,103 in 2025.
Source: MuniServices
Source: Berkeley OED
$0
$50,000
$100,000
$150,
000
$200,000
$250,000
$300,000
2021 2022 2023 2024 2025
Sales Tax Revenue by Sector, 2021-2025
Business & Professional Services Food & Beverage
Personal Services Retail
Other Non-Retail
4.00%
3.70%
2.60%
2.05% 2.05%
0%
1%
1%
2%
2%
3%
3%
4%
4%
5%
2021 2022 2023 2024 2025
Ground Floor Commercial Vacancy Rate (by
Square Footage), 2021-2025
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Sol
ano Citywide
Business Mix (by Square Footage), 2025 Q4
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 | 510.981.7530 South Berkeley: 2025 Snapshot
South Berkeley is a large district stretching over an area known for its cultural diversity and includes the Lorin District, the Sacramento corridor, and the South Shattuck area. South Berkeley includes car dealerships, which accrue retail sales tax revenue for the City. The area features a high Source: Berkeley OED
concentration of Personal Services
businesses (14.7% vs. 8.76%
citywide) but is under-served by
Food & Beverage services, which
account for only 5.8% of ground
floor commercial space, as
compared to 12.5% citywide. As of
Q4 2025, the district’s vacancy rate
by square footage was 6.76%, a
slight decrease from 2024 (8.86%).
Total sales tax collected in South
Berkeley decreased by $6,757 from
2024 for a total of $1.16 million
collected in 2025.
Source: MuniServices
Source: Berkeley OED
$0
$200,000
$400,000
$600,
000
$800,000
$1,000,000
2021 2022 2023 2024 2025
Sales Tax Revenue by Sector, 2021-2025
Business & Professional Services Food & Beverage
Other Non-Retail Personal Services
Retail
8.84%
11.76%
19.26%
8.86%
6.76%
0%
5%
10%
15%
20%
25%
2021 2022 2023 2024 2025
Ground Floor Commercial Vacancy Rate (by Square
Footage), 2021-2025
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
So
uth Berkeley Citywide
Business Mix (by Square Footage), 2025 Q4
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 | 510.981.7530 Telegraph: 2025 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 34.3% of Food & Beverage services accounting for ground floor commercial space in the district, as compared to 12.54%
Source: Berkeley OED
Citywide. Telegraph’s ground floor
inventory of retail accounts for 36.2%
of the business mix, slightly more
than the 31.19% observed citywide.
As of Q4 2025, the district’s ground
floor commercial vacancy rate of
10.45%, was higher than 2024
(9.94%). Food & Beverage services
continue to outperform Retail with
respect to sales tax collected; Food
and Beverage collections increased to
$724,652 in 2025.
Source: MuniServices
Source: Berkeley OED
$0
$200,000
$400,000
$600,
000
$800,000
2021 2022 2023 2024 2025
Sales Tax Revenue by Sector, 2021-2025
Business & Professional Services Food & Beverage
Other Non-Retail Personal Services
Retail
12.59%
8.51%
9.32% 9.94% 10.45%
0%
2%
4%
6%
8%
10%
12%
14%
2021 2022 2023 2024 2025
Ground Floor Commercial Vacancy Rate (by
Square Footage), 2021-2025
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Te
legraph Citywide
Business Mix (by Square Footage), 2025 Q4
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 | 510.981.7530 University: 2025 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 the most sales tax revenue for the district.
Source: Berkeley OED
Retail sales tax collected
in 2025 decreased by
$115,653 from 2024, and
sales tax from Food &
Beverage increased
slightly (up by $20,095).
The 2025 vacancy rate
decreased year over year
from 7.66% in 2024 to
3.34% in 2025.
Source: MuniServices
Source: Berkeley OED
$0
$100,000
$200,000
$300,
000
$400,000
$500,000
$600,000
2021 2022 2023 2024 2025
Sales Tax Revenue by Sector, 2021-2025
Business & Professional Services Food & Beverage
Other Non-Retail Personal Services
Retail
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
University Citywide
Business Mix (by Square Footage), 2025 Q4
Vacant
Arts, Entertainment &
Recreation
Trade Services
Office / Other Non-Retail
Business & Professional
Services
Personal Services
Public & Nonprofit Entities
Food & Beverage Services
Retail
9.13%
12.81%
17.66%
7.66%
3.34%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
2021 2022 2023 2024 2025
Ground Floor Commercial Vacancy Rate (by
Square Footage), 2021-2025
City of Berkeley | Office of Economic Development | 510.981.7530 West Berkeley: 2025 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, 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 45.84% of ground floor commercial space in the district, as compared to 31.09% citywide. West Berkeley also has a smaller percentage of
square footage devoted to Food and
Beverage (7.91%) businesses than the
citywide rate of 12.63%. The commercial
vacancy rate in Q4 of 2025 is 5.00%,
down from 2024’s 6.52%. Sales tax
revenue in all categories has decreased or
stayed steady in this area including Retail
where a sales tax revenue decrease of
$497,186 (-13%) from 2025 to 2024 (YoY)
is observed in this category.
Source: Berkeley OED Source: MuniServices
Source: Berkeley OED
$0
$1,000,000
$2,000,
000
$3,000,000
$4,000,000
$5,000,000
2021 2022 2023 2024 2025
Sales Tax Revenue by Sector, 2021-2025
Business & Professional Services Food & Beverage
Other Non-Retail Personal Services
Retail
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
West Berkeley Citywide
Business Mix (by Square Footage), 2025 Q4
Vacant
Arts, Entertainment &
Recreation
Trade Services
Office / Other Non-Retail
Business & Professional
Services
Personal Services
Public & Nonprofit Entities
Food & Beverage Services
Retail
4.67%
5.23%
2.14%
6.52%
5.00%
0%
1%
2%
3%
4%
5%
6%
7%
2021 2022 2023 2024 2025
Ground Floor Commercial Vacancy Rate (by
Square Footage), 2021-2025
City of Berkeley | Office of Economic Development | 510.981.7530 Neighborhood (C-N): 2025 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 (see map). The “C-N” areas
Source: Berkeley OED
represent nearly 556,676
square feet of commercial
space. The C-N areas
collectively generate 2.2% of
the city’s total sales tax. They
also include a large number of
Personal Services companies
(25.57% by square footage,
compared to 8.74% citywide)
and Public and Non-Profit
entities (33.03% compared to
7.70% citywide). The C-N
vacancy rate is 1.58%. 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
$0
$50,000
$100,000
$150,
000
$200,000
$250,000
$300,000
2021 2022 2023 2024 2025
Sales Tax Revenue by Sector, 2021-2025
Business & Professional Services Food & Beverage
Other Non-Retail Personal Services
Retail
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
C-N Citywide
Business Mix (by Square Footage), 2025 Q4
Vacant
Trade Services
Retail
Public & Nonprofit
Entities
Personal Services
Office / Other Non-Retail
Food & Beverage Services
Business & Professional
Services
Arts, Entertainment &
Recreation3.20%
2.31%
2.63% 2.79%
1.58%
0%
1%
2%
3%
4%
2021 2022 2023 2024 2025
Ground Floor Commercial
Vacancy Rate (by Square
Footage), 2021-2025