Berkeley City Council Special Meeting: Economic Dashboards Update (March 10, 2026)

The Berkeley City Council held a special meeting on March 10, 2026, to receive the annual Berkeley Economic Dashboards update from the Office of Economic Development (OED). The presentation, led by OED Manager Eleanor Hollander and her team, provided data from calendar year 2025 on employment, industry trends, hospitality, innovation, commercial real estate, sales tax, housing, and OED programs. Council members asked questions about business retention, attraction, and barriers to economic vitality. Public commenters offered both praise and criticism.

Public Comments & Testimony

• John Kuhner (Downtown Berkeley Association) : Thanked OED for partnership, highlighted the activation of the Shattuck block by Flying Horse Investments and the upcoming Core Spaces project. He emphasized the need for improved public safety and a welcoming downtown, called for a discretionary budget for OED, and advocated for more class A office space and events to boost the daytime economy.
• Kelly Hamergren : Expressed concern about downtown vacancies and stated that window film does not draw her to downtown. She worried about the impact of upzoning on Elmwood businesses under the quarter plan and emphasized the need to support small business owners who do not own property, noting that construction has detrimental effects on them.
• Cheryl Davila (former council member) : Criticized high commercial rents as a reason for businesses leaving, argued that homelessness is exacerbated by high rents and that the city fails to provide needed services, and stated that empty buildings should be used for housing. She expressed dissatisfaction with the council overall.

Discussion Items

• OED Presentation (Economic Dashboards Overview) :

  • Unemployment: Berkeley rose to 4.7%, matching the county rate and below the state’s 5.4%.
  • Major employers: Top 25 include public sector, healthcare, and private corporations; new to the list were Form Energy (battery R&D) and Boichik Bagels.
  • Hospitality: Berkeley ranked first in hotel occupancy and second in average daily room rate, with 1.6 million overnight visitors generating $8.3 million in transient occupancy tax revenue.
  • Innovation ecosystem: About 370 innovation businesses; life sciences and software are the largest sectors, with 86% early-stage companies. In 2025, 88 startups raised $1.5 billion in venture capital, but over 50% was concentrated in three large deals (Rigetti, Kobold Metals, Terrabase). Additionally, $40 million in government R&D grants flowed to 16 companies. OED quantified the local impact of UC Berkeley’s innovation and entrepreneurship initiatives: ~180 affiliated startups in Berkeley producing 500–600 jobs with average salaries over $200,000, contributing $200–$250 million to the economy.
  • Life science lab vacancy: 51.6% in Berkeley, influenced by the new Berkeley Commons property. This is higher than Emeryville and the Bay Area average, but OED noted that the market is adjusting and expects leasing activity.
  • Office market: Berkeley’s office availability remained stable and lower than nearby markets (30% in Oakland, 34% in Emeryville). Asking rents held steady at $3.38 per square foot.
  • Commercial development: New research/academic facilities under construction (Innovative Genomics Institute, Baker Labs). Private investment is reactivating spaces, such as Flying Horse Investments’ purchase of the Shattuck Plaza block, with multiple letters of interest.
  • Ground-floor vacancy: Dropped citywide to 6.3% from 7.5%, though some corridors saw increases. Retail occupies 31% of ground-floor space, and food & beverage occupies 13%.
  • Sales tax: Continued steady gains; retail accounts for 40% and food & beverage 37% of sales tax composition. A jump in personal services/taxes was attributed to fuel price fluctuations.
  • Housing: About 1,700 units approved in 2025, concentrated downtown and near campus. Median single-family home price in December 2025 was $1.265 million, with homes selling for 57% over list price.
  • OED programs: Loan programs have 25 active loans totaling ~$1 million. The Discovered in Berkeley campaign generated 4.6 million impressions. The Green Business Program certified 81 businesses. STEM Career X tours exposed students to careers at local startups. Civic arts grants exceeded $650,000. OED emphasized high-touch customer service and stewardship.

• Councilmember Questions and OED Responses :

  • Councilmember Taplin : Asked about life science vacancy lessons from Emeryville. OED explained that Emeryville’s vacancy drop was due to a property sale, and Berkeley can improve perception of permit streamlining.
  • Councilmember Blackaby : Inquired about Berkeley Bucks (program needs more training/reminders), the innovation ecosystem bubble chart (clarified hubs), lab space for growing companies (discussed recent zoning changes and available spaces), and permitting improvements. OED noted recent zoning updates allow R&D in more districts and permit streamlining efforts.
  • Councilmember O'Keefe : Asked about vacancy rate calculation (OED uses street surveys and CoStar data), tracking of chain vs. local businesses (OED does not track chains but supports local businesses through campaigns and assistance), and top barriers to economic vitality. OED cited multiple factors, including unpredictable street behavior, and mentioned ongoing work on vacancy policy and creative placemaking to activate vacant spaces. They also noted plans to celebrate legacy businesses.
  • Councilmember Tregub : Asked about permit streamlining (OED noted award for zoning support, updated definitions), qualitative data on why companies leave (OED tracks departures; most common reasons are business failure or inability to find suitable space, but almost no companies leave due to dissatisfaction), advertising commercial opportunities (business attraction strategy in development but no current funding; OED collaborates with UC Berkeley on events but lacks a budget for national/international marketing), startup grant information (shared via newsletters and campus partners), and small business loan fund outlook (revolving funds, partnership with Working Solutions for better borrower experience).

Council Comments

• Councilmembers uniformly praised OED’s work and the presentation. They expressed support for business attraction efforts, permit streamlining, and increased investment in OED. Specific suggestions included personal outreach by council members to prospective companies (Councilmember Blackaby and the Mayor offered to make calls), a branded fast-track permitting program, and allocating resources to a formal business attraction strategy. Councilmembers also noted the decrease in commercial vacancy rates and the importance of supporting start-ups, local businesses, and events.

Key Outcomes

• The meeting was informational; no formal votes or decisions were taken.
• Councilmembers directed continued focus on business attraction, retention, and permit streamlining. They expressed willingness to partner with OED on personal outreach and to explore funding for a business attraction campaign in future budgets.
• The Mayor emphasized that the information should be more widely shared and announced an intention to “pack the house” for next year’s economic dashboard presentation.