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San Jose buildings with mountains in the distance
Erik HaydenOct 26, 2021 10:59:57 AM5 min read

San Jose's Demand for Office Remains Strong

Why San Jose?

It’s a question I’m asked a lot by investors in the course of their due diligence. What makes Urban Catalyst think that, of all the cities around the country, San Jose has a strong demand for office?

The answer: We listen to the experts—experts like Colliers, a global commercial real estate firm.

A preview of Colliers’ third-quarter 2021 report on the region finds Silicon Valley’s office market is making a strong comeback from the economic obstacles created by the coronavirus, the Mercury News’ George Avalos reported.

The average monthly rental price of $5.35 a square foot is “the highest on record” in Silicon Valley, Lena Tutko, Colliers research director, said.

Colliers considers the Silicon Valley office market to be composed of Santa Clara County and Fremont.

2021 Q3 Silicon Valley Market report
Colliers report regarding commercial real estate in Silicon Valley in Q3

Sean Toomey, a Colliers senior vice president, said: “Silicon Valley is absolutely emerging from the doldrums of the pandemic and stay-at-home mandates. This is further noted by increases in traffic on our Silicon Valley freeways, ridership on Caltrain, and in tenant touring as many companies prepare for a projected January return-to-work environment.”

Other positive signs noted in the Mercury News article are:

  • An increase in rent in a variety of commercial types of space—office, research and industrial space.
  • There’s been a decrease in vacancies for industrial and research space.
  • There’ve been more than 2 million square feet of office leasing transactions for two consecutive quarters.

Why San Jose? Ask the experts at Colliers; they’ll tell you.>

Remember that the potential 10% reduction of capital gains taxes disappears on Jan. 1, 2022.

 

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The contents of this communication: (i) do not constitute an offer of securities or a solicitation of an offer to buy securities, (ii) offers can be made only by the confidential Private Placement Memorandum (the “PPM”) which is available upon request, (iii) do not and cannot replace the PPM and is qualified in its entirety by the PPM, and (iv) may not be relied upon in making an investment decision related to any investment offering by an issuer, or any affiliate, or partner thereof ("Issuer").

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With respect to any performance levels outlined herein, these do not constitute a promise of performance, nor is there any assurance that the investment objectives of any program will be attained. All investments carry the risk of loss of some or all of the principal invested. Assumptions are more fully outlined in the Offering Documents/ PPM for the respective offering. Consult the PPM for investment conditions, risk factors, minimum requirements, fees and expenses and other pertinent information with respect to any investment.

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Past performance are no guarantee of future results. All information is subject to change. You should always consult a tax professional prior to investing. Investment offerings and investment decisions may only be made on the basis of a confidential private placement memorandum issued by Issuer, or one of its partner/issuers. Issuer does not warrant the accuracy or completeness of the information contained herein. Thank you for your cooperation.

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- There is no guarantee that any strategy will be successful or achieve investment objectives including, among other things, profits, distributions, tax benefits, exit strategy, etc.;
- Potential for property value loss – All real estate investments have the potential to lose value during the life of the investments;
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Opportunity Zone Disclosures

- Investing in opportunity zones is speculative. Opportunity zones are newly formed entities with no operating history. There is no assurance of investment return, property appreciation, or profits. The ability to resell the fund’s underlying investment properties or businesses is not guaranteed. Investing in opportunity zone funds may involve a higher level of risk than investing in other established real estate offerings.
- Long-term investment. Opportunity zone funds have illiquid underlying investments that may not be easy to sell and the return of capital and realization of gains, if any, from an investment will generally occur only upon the partial or complete disposition or refinancing of such investments.
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Erik Hayden

Responsible for developing more than $3.5 billion in real estate projects, including over 2,300 residential units in the California Bay Area, Mr. Hayden has experience in acquisition, contract negotiation, due diligence, risk assessment, financing, construction, and disposition of multifamily, single family and large mixed-use and master planned developments. He maintains relationships with a broad network of property owners, enabling him to identify and acquire prime investments. Mr. Hayden also has expertise in navigating projects through the entitlement process by working with elected officials, community groups, and political organizations to gain support and get projects approved.

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