San Jose Fry's Electronics will become a tech hub

The beloved Fry's Electronics on Brokaw road finally has a new destiny. Super Micro Computer, which is headquartered in San Jose, wants to build a 333,400 SQFT manufacturing and tech center in its place. This would be part of a future tech hub replacing the Fry's store and office building.

Fortunately, they would keep the Mayan facade from Fry's and somehow incorporate it into the project. The total project could encompass a couple million SQFT, but it could be years or decades before that comes to fruition.

Source: The Mercury News

International video company opens first US office near Santana Row

Oslo-based Neat has nabbed a 10,887 SQFT space at 2880 Stevens Creek Boulevard, just beside the entrance to Santana Row and facing Valley Fair. 

The space will be used as both a worksite for 30 employees and a place where clients can try out Neat's products. The office will have conference rooms, huddle spaces, an R&D lab, and an open-seating theater space.

While most tech companies are pushing for employees to return to the office, Neat is taking a different approach where it does not have in-person requirements and the company believes employees should have a workday that suits their needs. If that sounds appealing, the company is hiring.

Source: SVBJ

X (Twitter) is relocating Bay Area staff to San Jose

After 18 years, X (formerly Twitter) is leaving San Francisco and is relocating staff to San Jose and Palo Alto. While the headquarters is officially moving to Austin, they are still keeping operations in the Bay Area and could have stayed in SF. However, the main reasons for the move are crime, homelessness, rampant drug use outside the office, and a city tax structure that makes it unsustainable for financial payments companies to exist (X is moving into payments soon).

I cannot find where the existing X offices are today in San Jose (UPDATE: it's Santana Row and I blogged about it five years ago 🤦‍♂️) ...

...but Downtown San Jose would be the perfect location for those coming from SF. Not only is Caltrain a valid option, but the ease of access to to restaurants and things to do outside the office rivals their old location with far fewer of the issues that plagued X employees.

Below is the email to X employees from Linda Yaccarino, X CEO.

Source: Fortune

San Jose's Archer Aviation is partnering with Southwest Airlines to build air taxi network

Archer Aviation is making a number of headlines lately. They just announced plans to build a network of five different air taxi locations across the Bay Area. Now they are announcing a partnership with Southwest Airlines to collaborate on integrating air taxis into California airports.

Southwest is California's largest airline and has operations at 14 different airports across the state. They are the largest operator at San Jose International Airport, which appears to be one of the five air taxi locations that Archer is planning.

The vision is that Southwest customers could do door-to-door trips between places like Napa or Santa Monica that do not have commercial airports within a few hours. You'd go from your Southwest flight to an air taxi that would take you to your destination in 10-15min.

Archer Aviation is headquartered at 190 W. Tasman Drive in North San Jose.

Source: Silicon Valley Business Journal

Microsoft planning massive data center in North San Jose

Microsoft want to build two five-story data centers near the corner of Component Drive and Orchard Parkway in North San Jose. Microsoft originally paid $78.7 million for the land in 2021 and has been sitting on it ever since. With the rise of ChatGPT (which Microsoft has a big stake in), the need for data centers will skyrocket.

Part of the project would also include a water storage tank, pump building with chemical treatments for that water storage, and a new PG&E electrical substation.

The 30+ acre data center project would be right next door to a mixed-use village in North San Jose consisting of offices, hotels, and retail. That project, which is being led by LBA Realty, could clock in at 1.28 million SQFT. Today I also noticed that Apple is leasing some buildings in the area right before you turn onto Highway 87. It could be an interesting area in a few years.

Source: East Bay Times

TikTok is subleasing major San Jose office building

A controversial tenant is subleasing an office building at 1143 Coleman Ave, also known as the Coleman Highline. TikTok is going to ramp up their operations in San Jose. I'm assuming this will be the case whether or not their China-based parent company--ByteDance--is forced to sell their interest in the company. By the way, ByteDance also has 658,000 SQFT in that same office complex.

TikTok will be subleasing the space from Roku. It appears that they will take a total of over 350,000 SQFT across two buildings.

Source: The Mercury News

San Jose's Super Micro is being added to the S&P 500

Super Micro is an IT solutions provider heavily involved in AI infrastructure. The company saw sales double in Q4 over the previous year to $3.66 billion. 

Their stock has exploded, rising nearly 1,000% in the last 12 months. Super Micro's new market cap has qualified it to join the S&P 500 on March 18th, replacing Whirlpool. This has added yet another boost to the stock price.

It's great to see yet another local company doing extremely well.

Source: SVBJ

San Jose AI startup raises $72M

Zededa Inc. just announced a $72 million in Series C funding. The company is a cloud-based edge management startup that works with manufacturing, retail, health care, and logistics company. Essentially they bring data closer to where it is needed for faster response times using less bandwidth.

The funds will be used to increase the amount of artificial intelligence and machine learning used in its products.

So far they have raised more than $127 million in funding and are worth about $400 million.

Source: SVBJ

Samsung is launching new AI-focused smartphones in San Jose

Samsung is gearing up to launch their newest flagship devices on January 17th at their North American headquarters, right here in San Jose. The theme is "Galaxy AI is coming." 

It's not entirely clear how Samsung will spice up their lineup but is easy to speculate that they will have components similar to ChatGPT or Google Bard. The new phones could also have new hardware to accelerate AI functionality or apply AI to phone use itself (e.g. predicting what you are going to do and setting up automatic routines). Whatever happens, they'll be filming here.

Samsung's North American Headquarters is located in North San Jose at 3655 North First street.

Source: The Mercury News

Green energy startup opening 50,000 SQFT factory in San Jose to turn bricks into batteries

A battery can be a lot of different things. One form I didn't expect was a brick. Antora Energy found a way to store heat inside of carbon blocks and then storing them while the brick stays at temperatures of 1,500 degrees Celsius or higher. When energy is needed, the system can leverage that heat for industrial uses or convert the heat back to electricity.

The 50,000 SQFT manufacturing facility will be built in North San Jose and should be completed in 2024. The first brick batteries are also expected to be manufactured and delivered to customers in 2024.

Source: BayAreaINNO

Artificial Intelligence Incubator coming to Downtown San Jose

Computers, the internet, and smartphones were disruptive tech that completely changed how people work and communicate. Yet, those innovations will pale in comparison to how AI will change the world over the next few years. No tech job will be as important as those involving AI functionality.

For Silicon Valley to continue to be the most innovative place on earth, we need to lean hard into AI. Fortunately, one of Downtown San Jose's biggest advocates, Gary Gillabough, is looking to build an AI incubator right in the middle of our urban core. He believe San Jose should be the capital of AI development, and we really should be.

Gary is working with a partner to bring as many as 40 or 50 AI startups to Downtown San Jose. This would not only fill up some of that vacant office space, but align San Jose with the most transformative technology that is being deployed today. 

As a side-benefit... those bright minds would be roaming the streets of Downtown, and perhaps bring ideas to make San Jose a better place to live. Personally, I would love to see AI incorporated into public art of some kind in Downtown San Jose. How cool would it be if you could go to Sonic Runway, say a sentence, and have that entire experience change based on how AI perceives that sentence. Dynamic, digital, personalized art should be part of the San Jose brand and we will likely need to leverage some form of AI for that.

As Gary mentions in the article linked below, an AI incubator will also create a positive buzz and excitement Downtown that will likely attract even more companies and people that want to be around that type of energy.

Source: The Mercury News

TikTok has close to 1,000 San Jose job openings with generous salaries

Silicon Valley's demise has been greatly exaggerated. Despite migration to Austin and other cities, the San Jose metro still has the highest proportion of tech jobs and the best salaries for tech in the US. The unemployment rate is near an all-time low and tech companies are beginning to ramp up hiring again post-pandemic.

TikTok's US headquarters are located in San Jose at 1199 Coleman Ave (also known as the Coleman Highline). They have a whopping 987 job openings. That's probably because they are hiring everywhere, right? Nope. Their San Jose openings make up 23% of all of their job openings globally. TikTok has access to far less expensive workers anywhere besides here, but they are continuing to aggressively hire in San Jose.

Examples of job opening are: 

• Senior machine learning engineers with a base salary of $187,040 to $280,000
• Lead graphics software engineer with a base salary of $187,040 to $358,000
• Lead machine learning engineer with a base salary of $210,000 to $358,000

Those are base salary ranges without bonuses, incentives, restricted stock units, or benefits. A top performer could earn double that range. Also, those aren't even managerial positions. 

If you're just starting out, don't worry they also have internships available at $45/hr.

TikTok is also hiring 178 people in Mountain View and 18 in San Francisco. So again, even within the Bay Area they are focused on the Capital of Silicon Valley.

Source: SVBJ

Photo by Abhishek Monangi

Photo by Abhishek Monangi

Photo by Abhishek Monangi

Park Avenue in Downtown San Jose is reopening

The massive 200 Park Avenue office tower is pretty much complete, and that means that Park Avenue between Market Street and Almaden can reopen. However, this street got a major facelift with new pedestrian improvements, bike lanes, and bioswales (organic channels or trenches that collect rainwater runoff and filter out pollutants).

200 Park is 19-stories above ground and has four levels of underground parking. There is a total of 840,000 SQFT of office space, 26,000 SQFT of outdoor terraces, and 2,000 SQFT of retail. Each floor of office space is a whopping 54,000 SQFT... it's massive.

Park Avenue won't be open indefinitely as other high-rise projects are planned for City View Plaza across the street from 200 Park. Eventually that entire block will be torn down and replaced with three large interconnected buildings that could add another 3.8 million SQFT of office space to Downtown San Jose. The timing might not be great for that project today, but in the future when funding and demand allow... it will make for a very large tech campus in a great location.

Source: Downtown Dimension

Future CityView Plaza Proposal

Santana West breaks ground on 350,000 SQFT office building

Now that Santana Row is wrapping up its final building, Federal Realty is setting their sights across the street with a new project called Santana West. The first phase officially broke ground last week and consists of an eight-story, 360,000 SQFT office building and a 1,750 space parking structure. Also, by breaking ground I mean there is already active construction on the site--it was not just a formality.

Federal Realty is trying to lease the whole building to a single tenant but is building Santana West speculatively without a tenant in tow. If all goes well, there are two additional phases that will bring the project to one million SQFT.

Unlike Santana Row, this is not a mixed-use development. In fact, there is no retail component at all--not even a coffee shop. The only likely public amenity in the project is the re-purposing of the Century 21 dome. This might seem like a missed opportunity, but two of the most successful retail projects in the United States are just across the street.

If everything goes according to plan, the building will be ready for occupancy in Q1 2021, less than two years from today.

BlueJeans moves HQ to San Jose

The popular video conferencing company BlueJeans is moving from Mountain View to the posh Santana Row flagship building at the very end of the row. They are upgrading from a 24,000 SQFT space to 40,000 SQFT in the same area where Splunk is headquartered. In fact, BlueJeans may have to bump up their salaries to keep their neighbor from poaching talent--Splunk has the highest median salary of any large company in the US.

It is an interesting move considering that their key competitor, Zoom, is also located in San Jose (Downtown). A few weeks ago Zoom became the must successful IPO of 2019 and the company is now worth over $16 billion. BlueJeans is smaller player but was worth $728 million four years ago during their last funding round. Who knows, they could be the next epic San Jose IPO.

Source: SVBJ

Google expanding to North San Jose

Google has a long term vision of building an epic 8 million SQFT campus in Downtown San Jose near Diridon. That project that will probably take a decade to come to fruition. Fortunately, there is another Google project in North San Jose with a much shorter horizon.

Google has just secured leases on three buildings totaling 611,535 SQFT that have yet to be constructed at 60 North Brokaw (near Casino M8trix). Peery-Arrillaga, the developer, has already requested permits to start construction. Two of the buildings would be eight stories tall, while the third is four stories.

The buildings could accommodate up to 4,900 employees, and they could start moving in as early as 2021. That sounds like ages from now, but is less than two years away. Since Mountain View real estate is completely tapped out, this is the first step in a long journey for Google to move the majority of their Silicon Valley operations to San Jose. Without major changes in building policies up north, San Jose is without a doubt Google's future.

Sources: SVBJ, San Jose Inside

Future Motion opening 60,000 SQFT facility in San Jose

Future Motion makes a one-wheel electric skateboard that is becoming increasingly popular. The self-balancing skateboards retail from $950 to $1,800. I see a bunch of them every time I'm in Downtown San Jose.

While the company is currently headquartered in Santa Cruz, they are opening a new manufacturing outpost in North San Jose at 2250 Zanker Road. Future Motion expects to employ 150 people at the new facility.

For additional information on Future Motion and the industrial market in general, check out the source link below.

Source: SVBJ

Electric Motorcycle Company moving to San Jose

San Jose is getting another cutting edge transportation company. Lightning is a manufacturer of high-end electric superbikes that can top 200 MPH and travel 100 miles per charge. They claim these are the fastest production motorcycles in the world.

Lightning has relocated from San Carlos to 6299 San Ignacio Way in South San Jose. The space is five times larger, which will allow them to expand their in-house design studio and R&D--likely bringing even more jobs to San Jose.

Thanks to Nio, Lightning, and several complimentary companies building EV components like Velodyne, San Jose is establishing itself as the Detroit of next generation vehicles. Even Tesla was originally planning to build their factory in North San Jose.

Source: SVBJ

Airbnb coming to Downtown San Jose

Another popular Bay Area company is making San Jose their home away from home. Airbnb is opening their first Silicon Valley office at 333 W. San Carlos Street. In an appropriate move for a sharing economy company, they are taking up about 50 seats from the 1,344 desks WeWork offers in the building. However, Airbnb is looking for a more permanent South Bay location in 2020, which hopefully won't be far from this office.

For more info, click the source link below!

Source: SVBJ

Roku is moving their HQ to San Jose

Roku--a popular streaming entertainment company--is taking over the Coleman Highline next to Avaya Stadium. The project will have a total of 8 buildings, all connected by outdoor bridges. Roku has decided to move their headquarters from Los Gatos (where it is subleasing from Netflix) to 570,000 SQFT across four buildings. It will first move into 91,368 SQFT in the first available building this January, followed by three other buildings as they come online.

The lease will be over 11 years, so they are making a major commitment to San Jose. We could see as many as 2,000 new jobs due to their move to San Jose. 

Since the Coleman Highline will eventually have 1.5 million SQFT of office space, that also gives Roku plenty of room to grow assuming other companies don't snap up all of the available floor space.

Source: SVBJ, SVBJ (2)