Pleasanton Continues to See Healthy Growth
Throughout the year an obvious trend emerged: slow and steady growth. Another quarter of positive absorption brought the Pleasanton market back to around pre-recession levels. Lease rates continue to be depressed but we expect that to be the new “normal”. Further signs of improvement include the development of Gateway
Pleasanton on Bernal Road at I-680.
Main Street continued to be the center of activity. 234 Main Street was sold to the group of developers behind the Tully’s and Stacey’s redevelopment. Construction will begin on the dilapidated building in early February. Fleet Feet Sports has signed a lease to occupy half of the 5,000 square foot building upon the completion of
construction. The Domus building continues to sit vacant with no serious suitors but a whirlwind of rumors continues. A sushi restaurant has signed a lease for the very hidden space on Division Street across from Downtown Yoga and next to Yolatea.
Pleasanton Gateway will be anchored by a flagship Safeway store. In total the new project will offer about 130,000 square feet of prime retail space. This project is about the same size as Waterford shopping center in Dublin. Neighboring this development site will be an office plaza consisting of 600,000 square feet of new space.
With Dublin moving forward on the Fallon Gateway project and Livermore scheduled to break ground at the Prime Outlet site as of April 1, 2011, what about Staples Ranch? Hendrick’s has no plans to start construction until the Auto Industry levels out. Stoneridge Creek, a retirement community consisting of 637 units, will break ground before summer.
The activity barometer suggests a continued resurge of the market. With a couple large vacancies still awaiting tenants, chances are we will see further improvement in overall vacancy through Q1 and Q2 of 2011.
Read and download the entire Pleasanton Market Report below: