For Immediate Release

Contact: James Paxson, General Manager
Hacienda Owners Association
(925) 734-6500

PLEASANTON, Calif. — Hacienda, the largest business development of its kind in Northern California, has faced a modest decline in occupancy levels at the start of 2025. The vacancy rate at the end of the first quarter was 17.56%, up from 15.22% at the end of 2024.

Occupacy & Leasing

Net absorption has returned to negative territory, totaling nearly 200,000 square feet in the first quarter, in contrast to a positive 43,921 square feet in 2024. The widely reported closures of Party City and Kohl's in Pleasanton during the last quarter have contributed to this downturn and accounts for over 55% of the negative absorption. However, with several additional transactions anticipated, further improvements are projected for the first half of 2025.

In April, monthly occupancy declined to 6,708,618 square feet, compared to 6,898,035 square feet at the end of March. All leasing activity during the month involved spaces under 10,000 square feet, representing 100% of both the number of transactions and the total leased square footage.

Despite the soft start to 2025, Hacienda has demonstrated its long-term appeal, as evidenced by several major leases secured in the past year. Hacienda was the site of several of the largest lease transactions along the I-680 corridor last year. Sutter Bay Medical Foundation secured 64,222 square feet at 4480 Willow Road, while Acco Engineered Systems Inc. leased 67,757 square feet at 5890 Owens Drive. In addition, Sutter Health’s Palo Alto Medical Foundation signed a 23,000-square-foot lease at 5075 Hopyard Road as part of its broader initiative to open more than 25 new ambulatory care centers across its network. Renovations for these facilities are scheduled to begin this year, with openings anticipated in 2026 and 2027.

The business services sector continues to lead in occupancy, utilizing 1,823,342 square feet of space. Biomedical firms follow with 1,163,099 square feet, while the manufacturing and healthcare sectors occupy 471,332 and 392,522 square feet, respectively. Complementing this core are tenants from a range of industries—including retail, hospitality, software development, education, and consumer goods—underscoring the area’s diverse tenant base and the wide array of employment opportunities available throughout the Bay Area.

“While the start of 2025 has presented some headwinds, Hacienda continues to demonstrate its value as a premier business location,” said James Paxson, Hacienda’s general manager. “The strength of recent leasing activity, particularly from major healthcare and engineering firms, reinforces the long-term confidence tenants have in our community. Coupled with a diverse industry base and continued interest in smaller-scale spaces, we remain optimistic about ongoing improvements in occupancy and sustained economic contribution to the region.”

Population and Employment

At the end of the first quarter of 2025, Hacienda accommodates 14,469 employees across 669 companies. This number is anticipated to grow as new developments unfold and occupancy rates approach pre-pandemic levels.

Additionally, Hacienda's residential communities currently have approximately 5,844 residents, a figure that is expected to increase to 6,400 with ongoing housing developments.

As of the 2020 U.S. Census, the region’s population was 400,213. 60% of Tri-Valley residents hold a bachelor’s degree or higher, surpassing the educational attainment levels of both California and the broader Bay Area. This concentration of skilled professionals contributes to a robust labor force, making the Tri-Valley an attractive location for employers seeking top talent. In terms of demographics, 45.4% of residents are aged between 25 and 44, and over 58% report annual incomes exceeding $150,000. The region’s high quality of life, characterized by natural beauty, tight-knit communities, and top-notch schools with a graduation rate of 97%, further enhances its appeal to innovators and business leaders.

City of Pleasanton

Pleasanton's demographics reveal a highly educated workforce, with over 85% of residents having attended college and nearly 70% holding a college or professional degree. The city also enjoys a high household income, with over 75% of households earning more than $75,000 annually. Pleasanton is a young city, with nearly a third of the population under 19 and over a quarter aged between 20 and 54, indicating a substantial portion of residents in their prime career years. The city boasts a rich history and character showcased in its picturesque downtown, reflecting its commitment to a high quality of life. Hacienda exemplifies this with its excellent educational facilities, abundant recreational activities, and a favorable climate for enjoying sports facilities, parks, and golf courses.

Hacienda Overview

The following overview will provide you with information on the most recent Hacienda activity pertaining to occupancy, tenants, sales and regional data of interest. Please also refer to selections found under the Project Overview section of our web site for related information.

Park Activity

• Occupancy and Major Tenant Transactions {Summary of occupancy information and major tenant activity}

• Development {Summary of development approvals and project construction information}

• Sales {Summary of project sales}

General

• Population {Summary of employee and residential population}

• Land Use Summary {Summary of activity by land use}

• Demographics (Area and Community) {Summary of demographic characteristics from 2020 US Census and 2023 American Community Surveys}

• Valuation {Summary of valuation}

Projects and Tenants

• Property Profiles {Summary of project specific information}

• Business Directory {Summary of businesses located in Hacienda}

About Hacienda

People come to the San Francisco Bay Area for many reasons: a spectacular natural setting, a sophisticated lifestyle, and unique professional opportunities. Quality of life means having the best of everything within easy reach, whether it's world-class restaurants, theater and museums, the best learning institutions in the country, or some of the finest services available.

Quality of life applies to business, too: having easy access to needed resources, being among other industry leaders, and knowing that you are part of a region that leads the world in innovation. When working and living environments both enhance quality of life, the result is an unbeatable combination that leads to success; and that is what you will find at Hacienda.

Centered in a dynamic region and propelled by the Standard Metropolitan Statistical Areas of San Jose, Oakland, and San Francisco, the Bay Area is a robust economic region. Hacienda, located near the center of the Bay Area in Pleasanton, spans 875 acres and is home to over 630 companies employing approximately 14,500 people. In addition to being a hub for business, Hacienda also features homes for about 6,000 residents, offering a full spectrum of residential choices.

Contact Information

Hacienda Owners Association
4305 Hacienda Drive, Suite 330, Pleasanton, California  94588-2738
(925) 734-6500 phone     (925) 734-6501 fax
info@hacienda.org e-mail     www.hacienda.org WWW