A state insurance fund has put its nearly 230,000-square-foot office campus in Pleasanton up for lease.
The San Francisco-based State Compensation Insurance Fund has listed two office buildings at 5880 and 5890 Owens Drive, the San Francisco Business Times reported, citing Loopnet.
The public insurance provider known as State Fund, which provides workers’ compensation coverage to businesses, wants to keep an unspecified number of offices in the buildings, State Fund spokesman Jonathon Tudor said.
How much space State Fund retains will likely depend on interest in the Pleasanton campus and how many State Fund employees want to continue working from the office, Tudor told the Business Times.
The 114,000-square-foot building at 5890 Owens Drive appears to have been listed in mid-March, a few weeks before the listing for 5880 Owens. The four-story Class B buildings were built in 2000, according to Loopnet.
They are among the largest contributors to a jump in office vacancy along the Interstate 680 corridor in the first quarter, according to CBRE, which holds the listing on both properties.
State Fund is just the latest organization to shed office space in the Tri-Valley. Oracle, Ross and Chevron have each listed offices for lease or for sale during the era of remote work.
State Fund bought its Pleasanton office campus on close to 11 acres in 2006 for an undisclosed price.
The 110-year-old public agency operates 20 other offices in California, including its headquarters in San Francisco.
It’s now assessing its real estate footprint, Tudor said, and chose to list the Pleasanton campus a half-mile from Dublin/West Pleasanton BART which is well located and will draw interest.
State Fund has employed a hybrid work strategy, Tudor said, and the insurance provider has no intention of leaving Pleasanton.
In 2010, the fund shrank its San Francisco offices, sending many employees to Pleasanton, Vacaville and Sacramento to cut costs.
In 2014, it sold a 100,000-square-foot office building at 5860 Owens Drive it had purchased alongside the Pleasanton campus now listed for lease.
— Dana Bartholomew
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