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

By Hacienda Network Staff Writer

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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