Events and actions over the last fiscal year show that Pleaasanton's economy has made a full recovery from the recent recession.
According to reports from City Manager Nelson Fialho and otheres, median home prices were roughly $1 million, or nearly 10% greater than they were in 2005 -- the highest pre-recession year for Pleasanton home values. The unemployment rate was 3.7%, down from a high of 8.8% in 2010. Office vacancies are 9.1%, down from 18.5% in 2011. Industrial vacancies are 3.2%, down from 8.8% in 2012.
Fiscal year 2014-15 was positive for the Pleasanton commercial office market. As of the end of the third quarter for 2015, the office vacancy rate was 9.1%, compared to the 12.8% vacancy rate at the same time in the prior year.
Australian-based Electroboard Solutions, Inc., a global education-focused technology company, acquired three more condominiums for its U.S. operations on Boulder Court off Valley Avenue, where it now owns five of the six condominiums that comprise that office/flex building.
Britannia Business Center III on Stoneridge Drive, comprised of three office buildings, sold for $35 million, or $184 per square foot, for a capitalization (CAP) rate estimated at 6.5%.
Clothing retailer Gap, Inc., paid approximately $40 million for the 181,495-square-foot building it had been leasing in the repositioned Rosewood Commons, establishing a long-term commitment to the city. This added to Rosewood Commons' mix of inked deals with firms such as ServiceMax and SmartZip Analytics, joining Ellie Mae and Astex Pharmaceuticals that had moved there in 2014.
Other commercial areas fared equally well. John Muir Health Care redeveloped its recently purchased 92,000-square-foot building for outpatient medical services in partnership with San Ramon Regional Medical Center, owned by Tenet Healthcare. New leased space in Bernal Corporate Park went to an expanding Shaklee Corp. and TriReme Medical Inc.
Shopping centers across the city benefited last year from investments by property owners and tenants. One notable example was the sale of Bernal Plaza for $11.6 million ($330 per square foot). Stoneridge Shopping Center added national retailers Swarovski, Build-A-Bear Workshop, Aetrex and Kids Foot Locker.
Downtown Pleasanton also shared in the post-recession growth last year. The current retail vacancy rate is less than 5%, with only a few Main Street locations available at year's end as the street continues to attract retailers and restaurants. Starbucks moved into the new Pastime Plaza building with McKay's opening across the street to immediate success.
Pleasanton also received several accolades over the year. To accompany the city's 31st-place ranking on Money Magazine's "America's Best Cities to Live," Pleasanton was ranked ninth on the publication's list of "Top Earning Towns" with a median family income of $144,132.
Similarly, the San Francisco-based consumer/finance web company Nerdwallet.com ranked Pleasanton on its "Top Best Cities for Northern California," and Apartmentlist.com ranked us the second-best city in California for raising kids and No. 27 on its national list.
And, in a survey of Pleasanton's commercial community, 91% of the respondents rated Pleasanton as an excellent or good place to do business.
With such a breadth of activity across all sectors, Fialho said Pleasanton continues to be well-positioned to sustain and grow its economic base.