HACIENDA ONLINE

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Published January 17, 2006
Volume 14, Number 1



Hacienda Leasing, Acquisitions Increase in 2005: Tanner Insurance, DirectBuy, SwimOutlet Lead Leasing


Kaiser Permanente's IT department is now used in nearly 400,000
square feet of facilities.


Hacienda saw a good deal of activity in 2005. The largest transaction of the year was the purchase of a nearly 400,000 square foot complex by Kaiser Permanente for their IT department. Simpson Strong-Tie also purchased a 90,000-square foot facility on West Las Positas Boulevard for use as their corporate headquarters and Extended Stay Deluxe purchased a hotel on Chabot Drive. On the leasing side, Hacienda saw an increase in the number of transactions over the last two years, led by Tanner Insurance, DirectBuy, and SwimOutlet, all leasing over 20,000 square feet of space.



(left) Simpson Manufacturing purchased these buildings this year. The "strong floor" seen under
construction, will be used in stress testing of the company's products.


As in 2003 and 2004, the vast majority of lease transactions were in spaces less than 10,000 square feet. This year, leases under 10,000 square feet accounted for 84.1 percent of the transactions in the park and nearly 23 percent of the park’s overall absorption. Overall tenant activity totaled approximately 900,000 square feet for the year.



(clockwise) Tanner Insurance, DirectBuy, SwimOutlet and Dahlin Group's new
Hacienda facilities.


At the end of 2005, the park’s overall vacancy rate stood at 11 percent. By use, the rate was nine percent for office space; 21 percent for flex/research and development; and one percent for retail.


A number of businesses, including Pitney Bowes and 7-11,
leased space at Hacienda Terrace.


Summary of Major Activity in 2005

Construction
Dahlin Group             6,681 sf

Major User Acquisitions
Kaiser Permanente IT         381,984 sf
Simpson Strong-Tie 89,892 sf
Extended Stay Deluxe 50,264 sf

Major Tenant Activity
Tanner Insurance 31,934 sf
DirectBuy 24,150 sf
SwimOutlet 22,961 sf
Pitney Bowes 14,132 sf
New Century Title 12,185 sf
Green Point Mortgage 11,972 sf
Standard Pacific Homes 11,067 sf
Seven 11 10,848 sf
Aura 10,830 sf



Aura, a new club/restaurant, began lighting up Pleasanton's nightlife this year.

Transactions
< 10K sf 84.1%
10K-50K sf 12.5%
> 50K sf 3.4%

Space Absorbed
< 10K sf 22.8%
10K-50K sf 27.6%
> 50K sf 49.6%
 
Overall Tenant Activity ~900,000 sf  



Extended Stay Deluxe's new hotel.

 

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