VTA moving workers into one of Downtown San Jose's nicest office buildings

The shiny blue tower at 488 South Almaden (forever in my mind as the Sobrato Tower) has a new owner. The Santa Clara Valley Transportation Agency (VTA) has chosen it as it's new home. They had previously been looking for up to 500,000 SQFT to lease with an option to buy.

The 17-story tower has 379,000 SQFT and stunning views of Downtown San Jose. I attended an event on the penthouse floor many years ago and at the time it was by far the nicest office building I had ever been to.

The VTA has taken advantage of a challenging office market with over 3 million SQFT of office space up for grabs in Downtown San Jose. This purchase will certainly make a dent in office vacancies when VTA workers move in around 2026.

The new office space will be just minutes away from two VTA Lightrail Stations and several bus routes.

Source: SiliconValley.com

San Jose approves tax breaks to help fill empty office space

Downtown San Jose like most places is struggling to fill up empty office space. The San Jose City Council voted unanimously to approve a new policy to help entice companies to lease up vacant space.

Any business with at least 2,500 SQFT that signs up for a four year lease or longer will be exempt from paying city business taxes and fees for at least five parking permits for two years. It's a step towards helping bring more people to Downtown San Jose and filling up about 3 million SQFT of available office space.

There have been some positive news in Downtown's commercial real estate scene. More on that tomorrow.

Source: San Jose Spotlight

San Jose's Annual Harvest Festival

Today is Pumpkins in the Park, an annual tradition that brings thousands of people to the Guadalupe River Park in Downtown San Jose to enjoy family-friendly activities.

There is a large pumpkin patch, inflatables, lawn games, vendors, food trucks, and live music. This year the trucks are El Viejon, Cali Cool, Fire & Slice, and Akita Sushi.

The event runs from 10am to 4pm at Discovery Meadow (180 Woz Way, San Jose). It's right next to the San Jose Children's Discovery Museum.

For more information, head over here.

San Jose City Hall Block Party on Thursday, Oct 17th

Dozens of businesses around City Hall will be participating in the last Downtown San Jose block party for 2024. This is an up and coming area that is starting to get a lot of traction. Rollati, one of my favorite Downtown restaurants, is located in this district as well as the new and unique Paleta Planeta.

The event will feature live music, tons of food, over 100 local makers & artists, tours of new businesses, and activities for the whole family. Ground zero will be right in front of San Jose City Hall.

The event runs from 5pm to 9pm and there is free parking for 90min in city-owned garages or free parking all night on metered spaces after 6pm.You can also easily take Light Rail to the Santa Clara Station and walk two blocks.

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

Cisco is consolidating San Jose offices at Santana Row

After acquiring Splunk in 2024, Cisco is now working on consolidating office space. While the company has 30 buildings across its North San Jose campus, you could argue that their flagship building is sitting at the end of Santana Row. 

Cisco is planning to close four buildings at 3750 Zanker Road and 260, 300, and 350 East Tasman Drive and moving those lucky employees to the former Splunk headquarters at the Row in mid October.

The space--which I'm assuming was already pretty nice to begin with--is also undergoing a renovation. The best way to encourage people to head back into the office is to make the office an amenity. The location will certainly help here.

Source: SVBJ

Porsche is setting up shop at Santana Row

Santana Row made history as the very first location for a Tesla Store. It disrupted the entire auto market with a direct-to-consumer model and a buying experience similar to an Apple Store--perhaps because the person responsible for Apple Stores was behind the initial Tesla Store concept. Several auto makers followed suit including Lucid and Polestar which have similar stores across the street in Valley Fair. The Santana Row Tesla Store has also become so popular that it significantly expanded it's original square footage into a neighboring retail pad a few years ago. 

Now traditional automakers are getting in on the action. Porsche is opening their very first Porsche NOW concept at Santana Row.

The store will enable visitors to interact with the Porsche brand in a lounge-like environment and tinker with one of Porsche's electrified models such as the Taycan or Macan Electric. This would make sense given San Jose is the largest market for electric vehicles per capita of any large city in the US.

The Porsche NOW store is located near Hotel Valencia at 355 Santana Row and had their soft opening last week.

Source: SVBJ

African American Cultural Center with housing proposed in San Jose

The African American Cultural Center is being proposed at 2001 The Alameda, right before San Jose turns into Santa Clara as you head away from Downtown San Jose. The project raised $3 million in funds August last year and another $4.1 million in federal funding this March. In total they have already raised $30 million.

The center is designed to serve as a hub for education, music, theater, dance, science, athletics, and business. The building itself will have meeting halls, banquet facilities, youth development facilities, a library, museum gallery, senior and youth programs, child care, a theatre, and even some retail.

Now there is also a major housing component to this project as well. EAH Housing is planning to build about 150 units, 135 of which would be affordable. 12 to 15 of the units would be for-sale condos. EAH Housing is a nonprofit that has already developed 107 properties and 8,700 residential units.

There is no ETA as a bit more fundraising needs to be completed, but this looks like a great mixed-use project for San Jose.

Source: SiliconValley.com