SAN JOSE—San Jose leads the Silicon Valley office market for the fifth consecutive quarter, according to the latest market report from Newmark Cornish & Carey, a unit of Newmark Knight Frank. The Silicon Valley office market showed a continued trend toward a more balanced market as rents remain flat so far in 2017 and availability increased, the report indicates.
Recent office moves are also demonstrating a San Jose migration as the US' 10th largest city is attracting more office users, including two blockbuster moves. One example is the well-under-construction 700 Santana Row, a 284,000-square-foot class-A spec office project opening late next year, being developed by Federal Realty Investment Trust.
“It's one of the largest new projects in the pipeline,” said Randy Gabrielson of Newmark Cornish & Carey, who represents the building, along with Todd Shaffer and Tracey Solari.
Comerica Bank's lease of 81,000 square feet was the largest in San Jose in the second quarter, and after the books closed on the quarter, two major announcements followed: Google took down large developed and undeveloped spaces around Diridon Station for an eventual 15,000-employee campus, and Adobe leased and bought property downtown to add 3,000 more employees to its already significant presence there.
“We have been pleased to see the continued office relocations to San Jose, showing its increasing 'headquarters' status evidenced by Splunk's move to Santana Row last year, and now Google and Adobe making huge moves downtown,” Jan Sweetnam, senior vice president for Federal Realty, tells GlobeSt.com. “Access to more housing and better amenities are key attractions, all of which helps recruiting, as Splunk has told us many times. We anticipate a continuance of migration to San Jose, and we've been encouraged by the early lease inquiries for 700 Santana Row.”
The Row as it's known, is a neighborhood with a retail component that caters to the tech community and its residents with stores such as Kit and Ace, Gucci, Scotch & Soda, Madewell, Ted Baker, Warby Parker and Bonobos alongside lifestyle perks such as restaurants, parks, condos, offices and a boutique hotel. The district strives to create #LifeonTheRow moments with poolside fashion shows, celeb chef demos and outdoor Lululemon Athletica yoga classes.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
