Hacienda Occupancy Stabilizes in Q3 2025 Following Early-Year Declines

Pleasanton, Calif. – Hacienda, Northern California’s largest mixed-use business development, showed signs of stabilization by the end of the third quarter of 2025 following earlier occupancy declines. The first half of the year was marked by elevated vacancy rates stemming from several major closures, including Party City and Kohl’s. However, the third quarter brought renewed leasing activity and steady interest from expanding firms across key sectors. With new commitments from healthcare, life sciences, and professional service organizations, Hacienda is regaining momentum. The development’s diverse tenant base, strategic location, and ongoing lease negotiations position it for stronger performance heading into the final quarter of 2025 and beyond.

Occupancy & Leasing

Hacienda experienced an early-year decline in occupancy but has since shown signs of leveling off. By the end of the third quarter of 2025, the vacancy rate stood at 19.03%, a modest increase from 18.86% at the end of the second quarter and 15.22% at the close of 2024, indicating that vacancy growth has begun to slow and tenancy conditions are stabilizing.

Net absorption remained relatively steady in the third quarter, totaling approximately negative 300,000 square feet. The widely publicized closures of Party City and Kohl’s in Pleasanton earlier in the year accounted for more than 55% of this decline. Despite these impacts, market conditions appear to be stabilizing, and with several pending transactions and renewed tenant interest, an improvement in absorption is anticipated for the fourth quarter of 2025 and into early 2026.

In October, overall occupancy edged down slightly to 6,589,194 square feet, compared with 6,648,269 square feet at the end of September. Leasing activity continued to be dominated by smaller transactions, with spaces under 10,000 square feet representing 95.65% of all deals and 65.37% of the total square footage leased. Mid-sized spaces between 10,000 and 50,000 square feet accounted for the remaining 4.35% of transactions and 34.63% of leased volume. These trends underscore a sustained preference among tenants for smaller, more adaptable spaces, reflecting ongoing adjustments to hybrid work models and broader economic uncertainty.

As of the end of the third quarter of 2025, the business services sector continues to lead Hacienda in occupancy, utilizing approximately 1,823,342 square feet of space. Biomedical companies follow with 1,163,099 square feet, while the manufacturing and healthcare sectors account for 471,332 and 392,522 square feet, respectively. These core industries are complemented by tenants across a broad spectrum of sectors including retail, hospitality, software development, education, and consumer goods, underscoring Hacienda’s diverse tenant base and its role as a dynamic employment hub within the Bay Area.

Hacienda’s occupancy has shown signs of stabilizing from the second to the third quarter, reinforcing the development’s long-term appeal. Several major leases last year set the activity baseline and underscore the property’s resilience. Notably, Sutter Bay Medical Foundation leased 64,222 square feet at 4480 Willow Road, while Acco Engineered Systems Inc. took 67,757 square feet at 5890 Owens Drive. Additionally, Sutter Health’s Palo Alto Medical Foundation signed a 23,000-square-foot lease at 5075 Hopyard Road as part of its broader plan to open more than 25 new ambulatory care centers across its network. Renovations for these facilities are underway, with openings scheduled for 2026 and 2027, positioning Hacienda for continued strength in the coming years.

“After a challenging start to 2025, we’re encouraged to see Hacienda’s occupancy stabilizing through the third quarter,” said James Paxson, General Manager of Hacienda. “The continued interest from healthcare, life sciences, and professional service organizations, along with several major leases secured earlier this year, underscores the long-term strength and appeal of our development. With a diverse tenant mix, strategic location, and ongoing lease activity, we are well-positioned for improved performance heading into the final quarter of 2025 and into 2026.”

Population and Employment

At the end of the third quarter of 2025, Hacienda accommodates 14,176 employees across 680 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

This overview offers the latest information on Hacienda’s occupancy, tenant updates, sales, and regional data of interest. For additional details, please consult the Project Overview section on our website.

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 Park Information

• Population (Summary of employee and residential population)
• Land Use (Summary of activity by land use)
• Demographics | Area and Community (Summary of demographic characteristics from 2010 US Census and 2019 American Community Surveys)
• Valuation (Summary of valuation)

Projects and Tenants

• Property Profiles (Interactive 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 14,200 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

For more information about Hacienda and our latest developments, please contact:Hacienda Owners Association
4305 Hacienda Drive
Suite 330
Pleasanton, Calif. 94588-2738

T: (925) 734-6500
E: info@hacienda.org
W: hacienda.org | LinkedIn | Hacienda Online