It is no secret that COVID-19 has not only changed life as we know it today, but many of the plans that Silicon Valley had for tomorrow. While much is still uncertain about when things will return to ‘normal’ and what that will look like from a personal, economic and financial perspective, we do know a bit about what has been halted and what has progressed from a development standpoint here in San Jose.
Here are the highlights:
GOOGLE’S TRANSIT VILLAGE
Homes of Silicon Valley has been following the progress of this project since its inception – so Google's Transit Village is first on our list! The City of San Jose has stated on their website that City Council consideration of the Downtown West Mixed-Use Plan has been moved from the end of 2020 to early 2021. In addition, City-initiated amendments to the Diridon Station Area Plan will be released in a draft this fall. Note that this is an evolving timeline and subject to change based on recovery work, ongoing emergency response and leadership priorities.
Learn More: Pandemic pushes back timeline for San Jose’s work on Google transit village
Source: Silicon Valley Business Journal
WOZ WAY OFFICES
Just last week, the Silicon Valley Business Journal reported that Developer KT Urban has submitted plans for (2) 20-story office towers near the San Jose Convention Center. “If approved and completed, it would include about 1.3 million square feet of office space, 6,000 square feet of retail space and 30,000 square feet of outdoor terraces on four office levels,” according to the SVBJ. KT Urban Partner Shawn Milligan has stated that “With the center of downtown San Jose shifting away from Santa Clara Street, southward towards Park Avenue and closer to transit options, we see the Woz Way project as a great way to activate this area with new opportunities.”
Learn More: KT Urban submits formal plans for 1.8M-square-foot project in downtown San Jose
Source: Silicon Valley Business Journal
GOOGLE PURCHASES ANOTHER CISCO BUILDING
Records filed April 1st indicate that Google has purchased its fourth building from Cisco in the last five months, this time a three-story R&D facility comprised of 140,000+ square feet located at 225 W. Tasman Drive. This purchase and sale agreement was actually filed in December of 2019, but exercised in early-April.
Learn More: Google expands North San Jose footprint with latest property purchase
Source: Silicon Valley Business Journal
DEALS ON HOLD & DEADLINES COMING
San Jose Spotlight has reported that countless residential and commercial deals and deadlines have been impacted by COVID-19, not surprisingly. Notably, these are the ones to watch:
| San Jose officials had been working towards building 25,000 homes by 2022.
| The Google development in San Jose had been subject to a December 30th approval deadline as part of the state’s streamlined AB 900 program.
| Over half-a-dozen high-rise, residential developments faced a June 30th deadline to pull permits in qualification for a city-sponsored program offering tax and fee breaks.
| More than 12 million square feet of commercial and R&D space was under construction prior to COVID-19.
While the trajectory of development across the nation has taken a sharp turn and, in many cases, reached a halting stop, Silicon Valley is approaching the situation as a speed bump rather than an ultimate roadblock. Industry experts have asserted that while “real estate isn’t the region’s top priority during the pandemic, it’s not far from mind. The industry has enormous effects on the long-term health of the economy and creates well-paid jobs that workers hope to return to when the stay at home order is lifted.”
Learn More: Silicon Valley’s largest developments delayed amid COVID-19 uncertainty
Source: San Jose Spotlight
If you have any questions about how these or other local development timelines may impact your own buying, selling and investing goals, please do not hesitate to reach out.
While none of us have a crystal ball (and most of us wish we had a fast-forward button!), we do know that the situation we are in will not last forever. We also know that Silicon Valley has the innovation, the employment drivers and the desire to not only come out of this, but to do so with strength, collaboration and enthusiasm.
May the best be yet to come,
Mark Barber, Homes of Silicon Valley