The commercial real estate market experienced a high degree of uncertainty and variability in 2022. Despite these challenges, 2022 was a year where Hacienda was able to capture a significant share of local activity.

During the past year, Hacienda was the location for a sizable proportion of both leasing and sales activity occurring in the area including the arrival of great new tenants that assumed large footprints for their future headquarters. The past year also saw a large amount of construction to prepare facilities for new and existing tenants, a positive development as owners and tenants commit to property improvements only when those improvements are seen as a sound investment. Given the amount of commercial real estate space that is in flux regionally, the changes in total vacancies over 2021 were relatively unsurprising and mirrored patterns seen both regionally and nationally. Again, Hacienda's 2022 performance, given the current market environment, is a solid achievement that underscores the value companies saw in securing a Hacienda address.

The following tables provide a general overview of activity in Hacienda during 2022, including highlights of selected projects at various sites, tenant activity, and property sales.

2022 Development Activity (Approved, Under Construction, or Completed)

While no construction of new facilities occurred in 2022, a number of important projects were advanced at existing facilities at various locations. These projects included a variety of site and building improvements, some performed in anticipation of new tenants such as the project at 4747 Willow Road. Below is a selection of the major work undertaken at Hacienda during the past twelve months.

Major Tenant Activity

Hacienda saw about 470,000 square feet of activity in 2022. While the majority of transactions involved less than 10,000 square feet, several were much larger. Two of the largest transactions to occur in the region, Vagaro and Unchained Labs, came to Hacienda in 2022. Atonarp, Kimley-Horn, ProSomnus and the Pleasanton Unified School District represented additional significant activity. Both the Kimley-Horn and ProSomnus transactions featured existing Hacienda tenants making substantial new investments within the development. Tenancies continued in a wide range of industries, including health care, finance, education, medical diagnostics and manufacturing, life sciences, professional services, and retail. A list of selected tenant activity appears below.

Following trends seen elsewhere in the region, occupancy rates rose significantly for both Flex/R&D and retail spaces in 2022 compared to 2021. While Hacienda will have negative net absorption for 2022 as a result of office vacancies that developed during the fourth quarter, it will only be by approximately 36,000 square feet.

2022 Sales Activity

Last year saw a brisk sale of properties at Hacienda, more than twice the sales of 2021. Hacienda’s appeal as a desirable environment for investment was confirmed by both investment purchasers and owners that acquired property for their own use, such as Stanford Health Care and the Pleasanton Unified School District.