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As prices in San Francisco and Silicon Valley continue to rise, local real estate investors agree companies that eschew the urban core in favor of places like Hacienda is a trend that should continue to grow.
"Well, historically, that's what we've seen," says Andrew Brown, director of leasing at Embarcadero Capital Partners. The office property investment and management firm has previously owned several assets in Hacienda totaling 600,000 square feet.
Hacienda is a lively mix of restaurants, retail, housing and office space in Pleasanton, California. It is ideally situated near BART and major freeways, with easy access to the rest of the Bay Area and local communities. The mix of amenities available at Haciendas creates a rich environment uniquely suited for working and living.
"I've worked in the [Bay Area] for about 30 years and have always thought that this was one of the better markets to own real estate," Brown says.
There are very few opportunities for tenants to lease space in San Francisco or the South Bay at reasonable rates, but Pleasanton is still a great deal, he says.
"I think over the long-term businesses have to expand in Pleasanton, in the East Bay, because of cheaper occupancy costs and the availability of the labor pool," Brown says.
More than 65% of Alameda County residents attended college. Nearly 42% have a bachelor's degree or higher, compared to 30% of California residents.
But nearly 40% of employed residents in Alameda and Contra Costa Counties leave the area each day for work, fighting gridlock for jobs in San Francisco, Santa Clara, and other counties, according to a recent report by the East Bay Economic Development Alliance, a public-private partnership dedicated to improving the East Bay economy.
Outbound commuters tend to be among the most highly skilled residents of Alameda and Contra Costa Counties, concentrated in industries that include information, science, and professional and technical services.
As rents increase, Brown expects larger companies who cannot afford San Francisco or the Peninsula to expand into Pleasanton, where employers can take advantage of one of the most well educated labor forces in the country, and a location in Hacienda near public transit, I-580, and I-680.
Hacienda also provides a better work/life balance with a quicker commute than higher profile markets in San Francisco and Silicon Valley. The development offers diverse housing stock and a reverse commute from San Francisco, 2 nd most congested city in the country.
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Arroyo Center: 104,741 square feet, office/R&D complex
Gale-Schenone Hall of Justice: superior Court of California
Hacienda Terrace: 303,266-square feet, Class A office
Las Positas Office Plaza: 105,044 square feet, Class A
Park Plaza: 51,235 square feet, office
Diverse tenant base, primarily technology, financial, insurance, and sales and service.
Kidder Mathews http://www.kiddermathews.com/downloads/research/office-market-research-san-francisco-2015-1q.pdf