Contra Costa County, a vibrant nexus of commerce and community in the East Bay, continues to be a dynamic landscape for commercial real estate. As we close out the second quarter of 2025, a nuanced picture emerges, characterized by evolving demand, strategic adaptations, and compelling investment opportunities. Understanding these intricate shifts is paramount for businesses seeking expansion, investors eyeing returns, and property owners looking to maximize value across the diverse Contra Costa market.

This in-depth Q2 2025 market report offers a comprehensive look at the key commercial real estate sectors within Contra Costa County, providing insights into current trends, performance metrics, and a forward-looking outlook for 2026.

The Office Market: A Continued Evolution Towards Quality

The Contra Costa County office market in Q2 2025 remains in a state of recalibration, still navigating the long-term impacts of hybrid work models. While overall vacancy rates have stabilized in certain sub-markets, a clear “flight to quality” is evident. Businesses are increasingly prioritizing well-amenitized, modern office spaces that foster collaboration, enhance employee experience, and offer flexible lease terms.

• Sub-Market Spotlights:

  • Walnut Creek: Continues to be the county’s premium office hub, boasting strong demand for Class A properties, particularly those near BART stations and downtown amenities. While some older buildings face challenges, new developments and renovated spaces are attracting significant interest. Rental rates here remain among the highest in the county, reflecting the desirability.
  • San Ramon (Bishop Ranch): This master-planned community maintains its appeal for large corporate tenants, though some companies are opting for smaller footprints. The focus here is on integrated campuses offering a holistic work environment.
  • Concord & Pleasant Hill: These central county locations offer more value-oriented options. We’re seeing a healthy absorption in updated Class B spaces, particularly from professional services and smaller tech firms looking for accessible and affordable alternatives to the pricier urban centers.
  • West County (Richmond, Pinole): While not traditional office powerhouses, these areas are seeing niche demand for medical office space and creative office conversions, particularly in accessible areas with good freeway access.

• Key Trends: The trend of companies rightsizing their office footprint continues, but this is offset by the desire for higher-quality, more efficient, and amenity-rich spaces. Landlords are responding with increased tenant improvement allowances and flexible lease structures to attract and retain occupants. Suburban office parks with ample parking and outdoor spaces are also performing well.

Retail Real Estate: Experiential & Necessity-Driven Resilience

Contra Costa County’s retail sector in Q2 2025 showcases remarkable resilience, largely driven by a strong focus on experiential offerings and necessity-based retail. While e-commerce continues to evolve, brick-and-mortar stores that provide unique experiences or essential goods and services are thriving.

• Sub-Market Spotlights:

  • Walnut Creek & Danville: These areas continue to be retail strongholds, drawing affluent consumers. High street retail and upscale shopping centers are performing well, with low vacancy rates and strong rental growth for prime locations.
  • Concord & Antioch: These larger population centers are seeing robust activity in neighborhood shopping centers, grocery-anchored plazas, and quick-service restaurants. Value-oriented retailers and service providers are expanding here.
  • Pinole & Hercules: Community-serving retail remains stable, with demand for medical services, fitness centers, and casual dining. Drive-thru concepts are particularly sought after.
  • Mixed-Use Developments: The integration of retail into new mixed-use projects across the county (e.g., in Pleasant Hill, Richmond) is creating vibrant new commercial hubs, attracting both residents and businesses.

• Key Trends: Food & beverage, health & wellness, and entertainment concepts are leading the charge. Landlords are increasingly looking for tenants that offer an “experience” that cannot be replicated online. Convenience and accessibility remain paramount for local and regional consumers.

Industrial & Logistics: Continued Strength Amidst Shifting Demands

The industrial market in Contra Costa County remains a powerhouse in Q2 2025, driven by ongoing e-commerce growth, last-mile delivery demands, and an expanding life sciences sector. Vacancy rates are historically low in many sub-markets, leading to competitive rental rates and strong investor interest.

• Sub-Market Spotlights:

  • Richmond & Martinez: These areas, with their port access and existing industrial infrastructure, are key logistics and distribution hubs. Demand for modern, high-clearance warehouse space is intense. We’re seeing new development and adaptive reuse projects here.
  • Concord & Pittsburg: These central and eastern county locations offer more land for development and are attracting light manufacturing, R&D, and last-mile distribution centers.
  • Bay Point & Antioch: Emerging as viable options for industrial users seeking more affordable rents and larger land parcels.

• Key Trends: The push for automation and efficiency is influencing new industrial facility design. Cold storage, specialized manufacturing, and data centers are emerging sub-sectors with high demand. Limited available land continues to drive up prices and encourage multi-story industrial solutions in some dense areas.

Investment Opportunities: A Strategic Approach for 2026

Investment activity in Contra Costa County commercial real estate remains robust in Q2 2025, albeit with a more cautious and strategic approach from investors. While interest rates have impacted cap rates, the long-term fundamentals of the East Bay region continue to attract capital.

• Key Investment Areas:

  • Multifamily: Remains a top-tier investment, driven by strong housing demand and population growth within the county.
  • Industrial: High demand, low vacancy, and consistent rental growth make industrial properties a favored asset class.
  • Value-Add Office/Retail: Opportunities exist for investors willing to acquire older, underperforming assets and inject capital for renovations, repositioning them for the current market demands.
  • Development Sites: Scarcity of developable land means strategic acquisitions of infill sites or properties with redevelopment potential are highly sought after.

• 2026 Outlook: We anticipate continued strong demand across most sectors, particularly industrial and necessity-based retail. The office market will likely see a widening gap between prime and secondary assets, favoring properties that offer superior amenities and accessibility. Interest rates will remain a key factor, but the underlying economic strength and population growth in Contra Costa County are powerful long-term drivers. Investors focusing on properties that align with current user preferences will find the most success.

Partnering for Success in Contra Costa County

The Contra Costa County commercial real estate market is complex and ever-changing. Navigating its nuances requires deep local knowledge, up-to-the-minute data, and a keen understanding of future trends. Whether you’re a business seeking the perfect location, an investor looking for your next opportunity, or a property owner aiming to optimize your asset, partnering with a local commercial real estate expert is invaluable.