Cities everywhere have struggled to find their footing in the aftermath of the COVID-19 pandemic, but Oakland, California, has become known as one of the hardest-hit real estate markets in one of the hardest-hit regions in the country.
The combined impact of remote work, tenant downsizings and evaporated demand meant that leasing volume in 2024 in Oakland totaled just 3.4 million square feet, an improvement over 2023's all-time low of 2.9 million square feet but still far from the average annual total of around 6 million square feet that characterized the pre-pandemic decade. Of the few leases that were signed over the last few years, many of them have been for significantly smaller amounts of space than in the past, doing little to remedy the market's more than 15% vacancy rate.
That backdrop made it all the more notable when e.l.f. Beauty announced in 2024 that it was doubling its Oakland headquarters, offering a positive sign for the city amid a turbulent office market. The cosmetics brand signed a nearly 28,000-square-foot lease at the Shorenstein Properties-owned office tower at 601 12th St. in downtown Oakland, known as the 601 City Center building, marking the largest new lease signed in the city in the second quarter of 2024. It garnered a 2025 CoStar Impact Award, as judged by real estate professionals with knowledge of the market.
The cosmetics company, which stands for eyes, lips and face and markets itself as a "bold disruptor with a kind heart," had been leasing space in downtown Oakland for a decade, initially moving into roughly 8,560 square feet at 570 10th St. back in 2014, a time when young people from San Francisco were streaming into Oakland's apartment market and startups were making plans to relocate their headquarters there.
“We love Oakland and feel very connected to our community as a hub of innovation, talent and inclusivity," said a company spokesperson last year, noting that the expanding company, with $1 billion or more in annual sales, needed more space.
About the deal: The company's ethos is that "all individuals are encouraged to express their truest selves, are empowered to succeed and where we do the right thing for people, the planet and animals," a motto that is behind its strong attachment to Oakland as an inclusive and tolerant place.
What the judges said: Rachel Kram of CP Partners called the move "a major win, reaffirming the city as a hub of innovation and talent." Marilyn Hansen of TRI Commercial predicted it would "jumpstart other companies looking for new headquarters to seriously consider Oakland."
They made it happen: Cushman & Wakefield's Marc Ward and Jonathan Schindler assisted in the lease.
CoStar Market Manager Madison Zebrowski contributed.