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

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.

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.

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.

Summary of Major Activity in 2005

Development Activity (approved, under construction or completed)

Dahlin Group

6,681 sf under construction

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

Overall Tenant Activity - ~ 900,000 sf

Lease 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%

Photo: (top to bottom)
Kaiser Permanente's IT department is now used in nearly 400,000 square feet of facilities.
Simpson Manufacturing purchased these buildings this year.
The "strong floor" seen under construction, will be used in stress testing of the company's products.
Tanner Insurance, DirectBuy, SwimOutlet and Dahlin Group's new Hacienda facilities.
A number of businesses, including Pitney Bowes and 7-11, leased space at Hacienda Terrace.
Aura, a new club/restaurant, began lighting up Pleasanton's nightlife this year.
Extended Stay Deluxe's new hotel.

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