Since 2010, the Valley has experienced 18 straight quarters of occupancy gains, equating to about 11.1M SF. But a new report fresh off the presses from JLL this morning is pointing to the downside. While 61% of new construction in the Valley is in Santa Clara and Sunnyvale, both have seen traffic rise by 15% since 2010, while experiencing 5.9M SF of positive absorption during that time. The report says average weekday daily traffic (335,000 cars going both ways) at the 101 and 237 shot up 9.5% year over year.
With at least five tenants looking for at least 100k SF in North San Jose, expect more bottlenecks. Traffic at the North 1st Street thoroughfare is already up 10% since 2010. What will surely add to that jam: Apple employees on the road. Apple recently purchased the 43-acre development site in North San Jose and leased the nearly 300k SF 101 Tech campus at 2325 Orchard Pkwy, taking its first big bite out of San Jose in decades.
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