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The outlook for downtown San Jose became a little less certain as the site of BXP’s proposed tech and office campus went up for sale, according to The Mercury News.
The project, Discovery San Jose, would have totaled 1.6M SF and spanned a full city block. BXP never broke ground.
Newmark now seeks a buyer for the downtown property at 447 S. Almaden Blvd. The 3.7-acre site is home to a parking lot that the city of San Jose is leasing through 2027.
Downtown San Jose had an overall office vacancy rate of 30% in the first quarter, according to Cushman & Wakefield, the second-highest of any Silicon Valley submarket.
Downtown San Jose isn't the biggest or busiest office market in the area. Nearby Sunnyvale and Santa Clara both have more office space due to the concentration of large tech companies.
Another stalled commercial project downtown is in the process of pivoting to an office-to-housing conversion. Developer Jay Paul Co. filed plans to convert its CityView Plaza project into 320 homes and an additional residential high-rise.
BXP has a substantial commercial real estate portfolio in the Bay Area, with 7.9M SF and 80% occupancy. The company owns Embarcadero Center, four towers in San Francisco’s Financial District, and Gateway Commons in South San Francisco. The latter is a 1M SF campus consisting of office and life sciences properties.
CORRECTION, MAY 23, 7:35 A.M. PT: A previous version of this story gave an incorrect name of the planned project in downtown San Jose. The story has been updated.
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