Boston Properties will pause construction on its Platform 16 project in downtown San Jose, making it the second major project to go on hiatus in the area.
The project called for the construction of 1.1M SF of office space in three buildings at 440 West Julian St., near a property owned by Google, which has also paused its Downtown West project amid declining demand for office space throughout the San Francisco Bay Area.
“Unfortunately, market conditions in the Silicon Valley, including San Jose, have deteriorated meaningfully,” Boston Properties CEO Owen Thomas said during an earnings call last week.
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PEOPLE
Boston Properties' San Francisco operations leader, Bob Pester, retired, the company announced last week. The retirement prompted the Boston-based real estate investment trust to restructure its West Coast operations, putting Los Angeles, San Francisco and Seattle under a single management structure. Rod Diehl, the senior vice president of leasing for San Francisco, is on track to replace Pester.
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The Port of Oakland appointed Dorin Tiutin as its acting director of the commercial real estate division.
SALES
Forge Development purchased a 10-acre industrial site in Berkeley this week, according to Berkeleyside. The developer bought 16 parcels for $48M. The site formerly housed Pacific Steel Casting and Berkeley Forge and Tool near Eastshore Highway and Gilman Street. The plans are to demolish the industrial remnants, paving the way for a life sciences development.
CONSTRUCTION
Skanska announced the completion of Sutter Health’s Samaritan Court Ambulatory Care and Surgery Center last week. The medical office building consists of 69K SF and is on the border of Los Gatos and San Jose.
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