Bishop Ranch 2019 Office Demand Tops 1M
SAP initially began relocating its regional offices to Bishop Ranch in 2015 in a consolidation from the South Bay to the East Bay for a total of 235,000 square feet.
SAN RAMON, CA—Sunset Development Company officials say that demand for space at Bishop Ranch was strong in 2019, a year in which new and renewal activity totaled nearly 1 million square feet. This resulted in enterprise application software provider SAP expanding its lease at 2600 Camino Ramon.
This lease occurred at a time when City Center Bishop Ranch, the 300,000-square-foot shopping, dining and entertainment center, earned the LEED Platinum certification, the largest US retail center to do so.
In this exclusive, Alex Mehran Jr., president and CEO of Sunset Development Company, discussed SAP’s decision, the types of tenants leasing at Bishop Ranch, Sunset’s methods of enticing tenants, City Center’s influence on leasing and Tri-Valley/East Bay office conditions.
GlobeSt.com: Why did SAP choose to expand its leased space at Bishop Ranch?
Mehran: SAP leased an additional 90,000 square feet, bringing its total workspace at the iconic 2600 campus to nearly 235,000 square feet. SAP initially began relocating its regional offices to Bishop Ranch in 2015. The expanded lease represents the company’s ongoing consolidation from the South Bay to the East Bay. Bishop Ranch sets a new standard for modern business by providing a healthy work-life environment, a robust transit program and high-quality buildings fostering a productive workplace for SAP’s employees.
GlobeSt.com: What types of tenants are leasing space at Bishop Ranch?
Mehran: We’ve seen recent activity by companies of all sizes and from a wide array of industries. We are attracting tenants from all parts of the Bay Area including San Francisco and Silicon Valley in addition to relocations within the 680 Corridor and the East Bay.
Leasing activity at Bishop Ranch offers proof of the San Ramon Valley’s growing reputation as an outstanding place to do business. New and expanded leases signed last year included WeWork, which signed a lease for 86,000 square feet at 2600 Camino Ramon, and Striking Distance Studios, a game development studio created by PUBG Corporation, which leased 25,000 square feet at BR 1 for its new headquarters.
GlobeSt.com: What is Bishop Ranch doing or planning in 2020 to enhance tenant leases and retention?
Mehran: With the addition of City Center Bishop Ranch, and soon, a new hotel and residential community, we are creating a strong sense of place for both tenants and the surrounding community to enjoy.
Our tenants continuously let us know through surveys that they enjoy a robust selection of dining options, walkability, and varied amenities and services to make it easy to live, work and entertain without stressors or inconveniences. We will continue to deliver on their wants and needs in 2020, and we will have exciting news to share on a new hotel soon.
GlobeSt.com: How has City Center Bishop Ranch influenced demand for space at Bishop Ranch, and vice versa?
Mehran: City Center Bishop Ranch has been a game-changer for Bishop Ranch. Today, the modern workplace seeks to nurture a multi-faceted lifestyle approach. Bishop Ranch tenants have long enjoyed access to our beautiful outdoor spaces, which allow for much-needed breaks, a quick energy boost or simply a change of scenery.
City Center Bishop Ranch provides another escape. The scenic quality of a daily environment or workplace has a direct correlation to employee well-being and overall productivity. At the end of the day, the offerings at City Center Bishop Ranch enhance the modern workplace by connecting people to a better work experience.
GlobeSt.com: How is the Tri-Valley/East Bay office market doing in general?
Mehran: The Tri-Valley and East Bay office market is strong, and the area continues to build on its legacy of being a central market and a workforce hub supported by one of the most well-educated and experienced labor pools in the Bay Area.
We’re seeing a lot of newer Bay Area companies take advantage of the talent here and the healthy labor pool, but don’t want the headache of being located in impacted markets. We are excited to welcome this new generation of companies and customers to the Bay Area and the East Bay.