Tri-Valley Vacancy Office/R&D Spikes with New Availability

PLEASANTON, CA-Tenant activity in the Tri-Valley area remained lethargic during the first quarter as the market’s sixth consecutive quarter of negative absorption pushed vacancy from 15.93% to 17.35%, according to the latest market report from Cornish & Carey Commercial.

The negative absorption is a little misleading, however, as it mainly was caused by large spaces that came available in Pleasanton and San Ramon, the only two submarkets to post negative net absorption. Some 300,000 sf became available in the Schwab-leased Pleasanton Corporate Commons and 108,000 sf became available at ADP Plaza in San Ramon. As a result, the overall market saw 23,297 sf of negative absorption.

If the Schwab space is taken out of the equation, the Tri-Valley experienced a 17% decrease in the amount of sublease availability, according to the report. The reason can be seen in the rates. Go Beam subleased 18,000 sf in Pleasanton at $1.20 per sf per month, full service, and Massiee Research Labs leased space in Pleasanton at $1.00 per sf per month, modified gross.