Just like Google’s move to purchase land in Playa Vista boosted the real estate market in the Los Angeles area, the same thing is happening right now in San Jose on a whole new level. With the San Jose City Council approving the sale of several parcels of land near Diridon Station, for more than $100M, Google is on track to move forward with a transit village that could eventually build-out to an 8 million square foot campus and create more than 20,000 jobs locally. As a result, these plans are already creating a “Google Effect” as real estate developers target properties around the planned village and spike a boom in downtown San Jose development. Throw in the possible expansion of Diridon Station and the advent of tax incentives in the form of opportunity zones in the same area, and you’ve got quite the development trifecta for 2019 and beyond.
According to Bisnow, property sales in downtown San Jose exceeded $1.4 billion in the 12 months ended in September 2018, three times the previous 12 months. Downtown San Jose is quickly becoming one of the hottest areas in California, attracting investors and spurring development. In fact, downtown San Jose currently has more than 30 development projects in the pipeline totaling more than 23 million square feet of potential new office space, 7,600 new residential units and more than 650 new hotel rooms, according to a recent tally of proposed projects in the commercial core by the Business Journal. And with the mayor’s proposal to reduce and simplify fees, be more flexible on zoning rules, and consider taller height limits, the city is poised to add 8.6 million square feet of development in and around the downtown core. Cause meet effect. It’s going to be a fun ride.
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