Hacienda tenant occupancy remained relatively unchanged quarter over quarter at the close of the first half of 2019. Net absorption for the year is in excess of 75,000 square feet above the close of 2018. Over 285,000 square feet of activity has been seen so far this year. The park is the largest mixed-use development of its kind in Northern California.
“While there has been some increase in vacancy in Hacienda's Flex products, activity in other areas has still produced an increase in occupancy overall since the close of 2018,” said James Paxson, Hacienda’s general manager. “What is particularly interesting is the variety of tenants seen in the market and the constructive re-use of existing facilities to accommodate tenants in different industries. Furthermore, we are continuing to see a very healthy investment climate in Hacienda. 2019 will likely be very similar to the last two years in this regard — an ongoing validation of the value of Hacienda's real estate."
Several notable transactions occurred in the first half of 2019. Major commitments were made by companies in a variety of business segments, including: ServiceMax (software development), Venture X (business services), Keller Williams Tri-Valley Realty (real estate services), Dentis Implant (dental), and Irisvision (biomedical).
Having just recently completed a large number of projects, construction activity has slowed for the moment. However, plans are moving forward related to a number of large tenant improvements for commitments made earlier this year, and planning has also commenced on both building rehabilitation projects for new tenancy as well as potential new construction.