Workday Sells More Pleasanton Offices at Discount

Workday is shedding more office space in Pleasanton at a steep loss.

The human resources software firm sold a 60,000-square-foot building at 6000 Stoneridge Mall Road for $5.5 million, or roughly a third of what it paid for the property in 2016, the San Francisco Business Times reported. The buyer is an entity tied to Grant Private Wealth Management CEO Grant Ter-Avanesyan, though the purchasing LLC is separate from the firm.

The sale pencils out to about $92 per square foot, marking a significant drop from Workday’s $14.5 million acquisition price a decade ago and far below the more than $32 million it ultimately poured into the asset, including renovations. The four-story building was listed in February with Cushman & Wakefield and was vacant at the time of sale.

Workday framed the disposition as part of a broader effort to consolidate operations. A spokesperson told the Business Times that the move will “bring our employees closer together” at its campus in Pleasanton. The company still controls six buildings totaling nearly 1 million square feet nearby, clustered closer to the east side of the West Dublin/Pleasanton BART station.

The deal marks Workday’s second property sale this year, following its January tradeoff of another nearby office building to Pacific Gas & Electric. PG&E picked up the five-story structure at 5928 Stoneridge Mall Road in an all-cash deal for $21.8 million — a steal compared to its $67.3 million assessed value.

In 2021, Workday bought five office buildings surrounding the Stoneridge Shopping Center in a $172.5 million deal, located at 6120, 6130, 6140, 6150 and 6160 Stoneridge Mall Road. It built a 410,000-square-foot building from scratch in 2019, which houses its 16,000-square-foot Workday Customer Center and has space for 2,200 employees.

Workday has been trimming its headcount at the same time it downsizes its real estate portfolio. In February, the company announced it would lay off 8 percent of its global workforce, which includes approximately 617 Pleasanton employees. The firm also abandoned office space in San Mateo’s Bay Meadows last year.

— Chris Malone Méndez