San Jose is ramping up its efforts to breathe new life into its downtown area, focusing on revitalizing the business landscape and enhancing the urban experience for residents and visitors alike. While cities across California continue to feel the effects of the pandemic, San Jose is taking a proactive approach, leading the way with a comprehensive incentive program designed to attract new businesses and increase daytime foot traffic.
New Incentives for Businesses
Starting in 2025, San Jose will introduce leasing incentives designed to save companies relocating to downtown significant amounts of money. This plan includes a two-year business tax exemption for new office tenants and owner-occupiers who lease at least 2,500 square feet of space for a minimum of four years. Additionally, businesses will receive two years of free parking—potentially saving them tens of thousands of dollars in both taxes and parking costs.
Urban Catalyst is proud to have contributed to this vision, with several of our partners having engaged in discussions with the City and the Downtown Association about these incentives in 2023.
Mayor Matt Mahan stated, “We’re doing what we can to entice office users to lease or buy commercial space downtown.” With downtown San Jose currently facing a staggering 31.5% office vacancy rate—approximately 3 million square feet of vacant space—the city is taking proactive steps to encourage businesses to return.
Supporting Local Businesses and Community
The city’s commitment to revitalizing downtown extends beyond attracting new tenants. Initiatives also include improved safety measures, new lighting elements, and services for the homeless, aiming to create a welcoming environment for everyone.
San Jose’s overall strategy involves enhancing the urban experience for residents, visitors, and office workers alike. Nathan Donato-Weinstein, downtown manager, stated, “The biggest thing we can do to enhance office leasing is to enhance and improve the urban experience for everyone.”
A Vision for Vibrancy
Assemblymember Matt Haney recently toured our Paseo project in downtown San Jose, where he gained valuable insights into the city's efforts to revitalize the area. Haney praised the collaboration between city officials, the Downtown Association, and local organizations, stating, 'You’re bringing back downtown San Jose with creativity, teamwork, joy, fun, and the arts—everything we’re striving to achieve in San Francisco and across the state. I believe San Jose has much to offer the rest of California.'
During his visit, Haney explored Eos & Nyx, a standout tenant in our project that is set to open soon, as well as Urban Putt. The decision to tour our Paseo project underscores our role at the forefront of downtown San Jose's transformation.
Eos & Nyx co-owner Dan Phan, far right, talks to, from left, Urban Catalyst Chief Operating Officer Joshua Burroughs, Assemblymember Matt Haney, San Jose Downtown Association CEO Alex Stettinski and San Jose Mayor Matt Mahan about plans for the new restaurant, which is expected to open next month on Paseo de San Antonio in downtown San Jose, on Friday, Oct. 11, 2024.
Building a Brighter Future
The Paseo project is just one part of Urban Catalyst’s broader vision for downtown San Jose. Our developments encompass everything from housing to hospitality, senior living, and student housing—each tailored to meet the needs of the community while contributing to a vibrant, bustling downtown for years to come. We take pride in playing a role in the success of our city, and as Mayor Mahan aptly said, 'When we come together as a community and set goals, we can achieve great things.”
Ready to be part of downtown San Jose’s transformation? Book a call with us today to explore how you can get involved.
https://www.bizjournals.com/sanjose/news/2024/09/25/downtown-office-incentives.html
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