Companies Head to Pleasanton

Recent news from companies that they will soon make Pleasanton their home, have created a buzz around the Tri-Valley region.

Media outlets  reported last week that these relocations, in addition to companies moving to surrounding cities, have some calling the region "Silicon Valley East."

According to Jeff Birnbaum, First Vice President of CB Richard Ellis, there may be more similar news to come.

"It is definitely a good sign," said Birnbaum. "There are a few other large transactions rumored ... which will continue to boost momentum."

Xradia, a 3D  imaging company, announced it will be moving from Concord to a space on Hopyard Road. Patelco Credit Union will make a similar move for its headquarters, trading its offices in San Francisco for Pleasanton. Earlier this year,  Callidus Software relocated its headquarters from San Jose to a building on Stoneridge Mall Road.

Overall, the moves mean more than 200 new jobs to the area.  The news also come at a time when Pleasanton has been experiencing its highest office space vacancy rate in a decade.

At the end of the second quarter, 24 percent of Pleasanton's office spaces were vacant, according to Birnbaum. Similarly, nearby cities were  experiencing higher-than-normal rates with San Ramon at 10 percent, Dublin at 19 percent and Livermore at 26 percent.

Birnbaum said these figures are at the 1990s levels and reflects the the overall  economic picture.

But many say Pleasanton and other Tri-Valley cities continue to have characteristics that  attract companies. These include access to highways, the installation of a second BART station and highly-educated labor pool.

"I think the fundamental elements haven't  changed, it's just that the overall economic picture has really put a dark cloud in terms of what we have to deal with," said Birnbaum.

Pamela Ott, the city's economic development director, said while the economy plays a large role in the high office space vacancy rate, the city is undertaking efforts to create a friendly environment for businesses. 

Ott said this includes outreaching to businesses looking to expand, connecting them with local commercial brokers, and making commercial space listings available on the city website.

In addition, Ott said local groups such as the Pleasanton Downtown Association and the Pleasanton Chamber of Commerce serve as resources to businesses.

"Those things have to go hand-and-hand, you can't ascribe it all to the market," said Ott.

The Tri-Valley is also hoping to attract and grow its own entrepreneurs in the area. In the past year, the Tri-Valley Business Council created the Tri-Valley Innovation Network. The group provides education and resources for entrepreneurs looking to start and build new and innovative businesses.

Ott said the group involves several entities who wanted "to understand what the eco-system" in the Tri-Valley is like in order to foster innovation.