The ideal location, outstanding amenities, and business benefits of having an office at Hacienda have attracted some of America's finest corporations. Hacienda is home to firms in a broad range of industries, from biomedical and technology to restaurants and retail. Tenants include Fortune 500 companies, start-ups, and professional consulting firms that specialize in areas that include computer systems, science, engineering, law, and accounting.

In the middle of a challenging market, particularly for office properties, Hacienda recorded solid activity last year that suggests promise for 2025 as well. Year-over-year figures showed an overall decrease in vacancy from 15.73% to 15.22% by the end of the year. While quarter-over-quarter figures fluctuated throughout 2024, the end of the year saw a positive 43,921 square feet of net absorption. Total occupancy began at 6,854,674 at the beginning of the year and increased to a total of 6,898,595 by the end of December 2024. Like many other office markets, Hacienda saw challenges throughout 2024 with corresponding losses of tenancy in the office sector. However, these losses were more than offset by the completion, with Sutter Health and ACCO Engineered Solutions, of two of the largest 2024 leases in the Interstate 680 corridor. This activity, in addition to several other transactions, produced the net gain in occupancy. While the underlying challenges in the office market have not abated, there are continued signs that additional positive gains will be realized in 2025.

Most activity last year came from tenants occupying less than 10,000 square feet, which accounted for 95.45% of all transactions and 38.13% of the total volume of occupied space. Larger spaces between 10,000 and 50,000 square feet, accounting for 23.86% of all space occupied during the year, made up 3.25% of deals. Only 1.3% of transactions for the year took place in occupancies over 50,000 square feet and accounted for 38.01% of the total volume

The business services sector comprised the largest portion of Hacienda’s occupied space, at 1,823,342 square feet. Biomedical companies accounted for 1,163,099 square feet, various forms of manufacturing occupied 471,322 square feet, and health practitioners occupied 392,522 square feet. Other notable industries at Hacienda last year included retail, hotels, education, and consumer goods. Hacienda’s diverse group of tenants reflects the wealth of employment opportunities across the Bay Area. The tables below provide a general overview of activity in Hacienda during 2024, including highlights of selected projects at various sites, tenant activity, and property sales

2024 Development Activity (Approved, Under Construction, or Completed)

In addition to a variety of tenant improvements made or commenced for new businesses, last year saw the return of new construction to Hacienda. For the first time in several years, new buildings began to enter the Hacienda landscape. They include the first phase of a three-product type residential project that commenced construction in 2024. The residential project was joined by a companion project, immediately adjacent, for a new premier childcare facility. Both projects are located on Owens Drive just south of Rosewood Drive and are being developed on a portion of the parking field for the larger Rosewood Commons office complex. Below is a summary of development activity for the year.

Construction activity in support of new tenancy was also present during 2024. In addition to projects being completed that had commenced the year prior, many new notable improvements began last year as well.

Major Tenant Activity

Notable tenants that leased space at Hacienda last year included ACCO Engineered Systems, Sutter Health, and Sunbelt Controls. Hacienda saw just over 345,000 square feet of activity in 2024. The majority of transactions involved less than 10,000 square feet but accounted for almost 40% of the space occupied. Larger spaces occupied were a smaller percentage of the total number of transactions but contributed significantly to the total amount of space occupied over the year.

2024 Sales Activity

Overall, Hacienda has enjoyed an impressive history of growth and investment. The fundamental soundness of the Hacienda vision has allowed it to realize its potential over the years as a compelling and comprehensive master planned project. Once built, projects in Hacienda continue to receive investment with new ownership. This means facilities are kept current and contain all of the important amenities in demand from businesses looking for a premier location. Advance planning for facilities also means that the process for both creating new projects and making upgrades to existing projects has been made simple so that Hacienda can provide a quick and nimble response to market demands. In 2024, limited sales activity resumed after a year of no sales completions in 2023. While a number of sales were transacted for both users and investors during 2022, neither produced sales activity during 2023. Last year saw one sale at the beginning of the year. Changing dynamics in the investment market suggest more sales will be seen over the course of 2025.