SR 06:064B - Laserfiche WebLink

the Hacienda Business Park Owners Association, which was formed in 1982 to take over management of the Park and planning for its future. Recent leasing activity (2004) has been modest, impacted by national and regional economic slowdowns as well as a loss of approximately 600 jobs arising from the acquisition of PeopleSoft by Oracle. According to the 2004 Hacienda Business Park Owners Association Annual Report, Hacienda office transactions accounted for over 54 percent of gross office space absorption in Pleasanton last year. However, the Park is beginning to see an increase in occupied space, resulting in a drop in vacancy rate from 14.9 percent at the end of 2003 to 12.3 percent by the end of 2004. Major leasing activity in 2004 included roughly 150,000 square feet to Ross Stores, and an additional 140,000 square feet comprised of five transactions for more than 22.000 square feet of space each. In addition, a significant share of 2004 leasing activity was to small users, with transactions involving less than 10,000 square feet (this activity comprised over 80 percent of all transactions within the Park in 2004). This resurgence in small office users, primarily between 1,500 to 7.500 square feet, occurred as major landlords such as Equity Office subdivided space, performed tenant improvements on spec, and lowered rent to attract small office tenants. Building and subdividing space for use as for-sale office/R&D condominiums has also seen an increase in activity. Currently, two buildings which will offer for-sale office condominiums to smaller business owners are undergoing entitlement. A major change of ownership was recently announced with Kaiser Permanante purchasing 363,000 square feet from Oracle. This transaction reported at roughly $200 per square foot will consolidate Kaiser's 2,000 person information technology operation at Hacienda. The nearly 20 offers made on the property suggest a possible resurgence in the marketplace for this type of high quality office space. To plan for the future, a Specific Plan for Hacienda was recently initiated, funded by Hacienda Property Owners Association and the East Bay Community Foundation. This planning process will explore adding transit-oriented mixed use development to Hacienda, primarily near the BART station. The Plan expects to focus primarily on development of housing, along with additional supporting retail uses to serve the needs of both existing occupants and new residents. Bernal Corporate Park The Bernal Corporate Park is comprised of 1.125 million square feet of office space in 9 developed parcels. and sits on 89 acres adjacent to the 1-680 freeway. Buildings were developed starting in 1987 and are primarily mid-rise Class A office, and some one- and two- story office. along with service/R & D and retail. Occupancy rates have remained above 90 percent over the last five years. Asking rents are $1.25 per square foot, per month, on a triple net basis (tenant pays all operating expenses in addition to rent). Pleasanton Economic Development Background Report FINAL - January 2006 35