Kennedy Wilson Hires Colliers to Lease Downtown Oakland Office Tower

Why It Matters

The deal positions Kennedy Wilson to capitalize on scarce premium office inventory in the Bay Area, while Colliers’ expertise could accelerate occupancy and enhance the tower’s valuation.

Key Takeaways

• Colliers secures exclusive lease mandate for 607,000‑sq‑ft Oakland tower
• Kennedy Wilson acquired 601 City Center via foreclosure in April
• Tower offers up to 260,000 sq ft contiguous space for tenants
• First new high‑rise office building in Oakland since 2019
• Double‑glazed curtain wall and illuminated façade enhance market appeal

Pulse Analysis

Oakland’s commercial real‑estate landscape has been dominated by older, low‑rise properties for years, leaving a gap for modern, Class A office space. The city’s last high‑rise office tower, completed in 2019, marked a tentative return of new construction after a decade‑long lull. Demand from tech‑adjacent firms and professional services has intensified as companies seek locations that combine proximity to San Francisco with lower costs and improved transit options. Investors note Oakland vacancy rates sit below the national average, highlighting inventory scarcity. This environment creates a premium for newly built, amenity‑rich towers.

Colliers International was tapped by Kennedy Wilson to spearhead the leasing of 601 City Center, a 24‑story, 607,000‑square‑foot tower. The firm’s senior executives—EVPs Charlie Allen and Anthony Shell, and SVP Amber Merrigan—will market the property to Bay Area firms seeking a distinctive address. With a double‑glazed glass curtain wall and illuminated exterior, the building can accommodate a single block of roughly 260,000 sq ft or smaller suites starting at 5,000 sq ft, offering flexibility for both large tenants and boutique occupiers. Colliers will deploy digital campaigns and on‑site tours to highlight sustainability certifications and modern amenities.

The partnership signals Kennedy Wilson’s intent to revitalize the asset and capture rising demand for premium office space in the East Bay. By leveraging Colliers’ extensive tenant network, the owner aims to achieve high occupancy levels quickly, which could boost the tower’s valuation and set a benchmark for future high‑rise projects in Oakland. Achieving 80% occupancy within a year could enable refinancing at lower rates, boosting equity returns. Success would also reinforce the city’s broader economic recovery, encouraging developers to consider additional office construction amid a shifting post‑pandemic workplace landscape.