Walkability and Close-In Jobs Are Covered in Mixed Use
Mixed-use projects are appealing to residents in the Bay Area because those developments combine housing with amenities and conveniences, along with proximity to jobs, transportation and services.
SAN JOSE—The Bay Area, underpinned by meteoric growth in the tech, semiconductor and biotech industries, has generated unemployment rates matched only by the late 1990s. Household formation has surged, yet a lack of housing, primarily multifamily units, has pushed vacancy to extremely low levels, according to a fourth quarter report by Marcus & Millichap.
With tech’s influence continuing to rise in the region, Silicon Valley is considered one of the hottest housing markets in the country. As a result, developers struggle to keep up with demand for affordable, transit or freeway-proximate housing with mixed-use elements.
Mixed-use projects are appealing to residents in the Bay Area because those developments combine housing with amenities and conveniences. Many have programming that accommodates a wide range of interests including outdoor space for sports or socializing, or retail and events to keep people of all ages entertained.
“The attributes of mixed-use developments that we find appealing include the ability to have a variety of housing types and densities, the opportunity for walkable neighborhoods and shared high-quality amenity spaces, and the proximity of these developments to existing jobs, transportation and services,” Robert Freed, SummerHill Homes president and CEO, tells GlobeSt.com.
SummerHill Homes currently has two major projects underway that fit this description, Locale @ State St, a community in Fremont currently offering 76 rowhomes and 81 condos for sale, and Nuevo, an upcoming urban town in Santa Clara that will introduce more than 40,000 square feet of retail and restaurants, more than 6 acres of new parks and outdoor amenities, 537 apartments, 41 single-family homes, 114 townhomes and 176 terraces for sale.
Locale @ State Street is the first mixed-use project in downtown Fremont. Located within walking distance of the Fremont BART station, Locale will offer 157 residential units, retail and office space. Community amenities include outdoor spaces with barbecue kitchen islands, trellis shade canopies, seating areas and a fitness studio. The community will also encompass 21,000 square feet of street-front retail and restaurant space directly along Capitol Avenue. Fremont is centrally located for first-time homebuyers, Millennials and empty nesters who want to be close to major transportation hubs.
Nuevo will feature 868 homes, 40,000 square feet of retail and restaurant space, a community garden and a 4,000-square-foot community center. Nuevo marks the ninth community in California under development within SummerHill Homes’ portfolio and one of the largest residential projects underway in Silicon Valley. Nuevo will have a community center, dog park, bike paths throughout the community, turf areas for yoga and soccer, basketball courts, neighborhood-serving retail, movie-in-the-park events, picnic areas and a children’s playground. Residents will also have access to outdoor reading rooms, electric vehicle charging stations and a community garden.
As construction falls, rental rates have stabilized and reaccelerated as tenants vie for the limited number of remaining apartments still available. Rent growth will be most pronounced in commuter locations in second- and third-tier suburbs, where the rental rate remains below the metro average, says Marcus & Millichap.