San Jose Office Market Trends

Office Rental Market

  • $41.69 2019 Avg. Asking Rent
  • 17.03 % 2019 Avg. Vacancy Rate
  • 682,055 2019 Office Completions (Sqft)
  • 4,869,287 2020 Estimated Pipeline (Sqft)
In 2019, the average asking rent for office space in San Jose was $41.69 per square foot, and the office vacancy rate across the market averaged 17.03 %. During 2019, developers added 682,055 square feet of new office space to the San Jose market inventory. Office developments estimated for delivery during 2020 total 4,869,287 square feet.

Average Office Asking Rents by Class

2019 Average Office Rent per Square Foot

  • San Jose Class A Office Buildings$49.75
  • San Jose Class B Office Buildings$33.03
  • San Jose Class C Office Buildings$23.23
  • CA Class A Office Buildings$51.59
  • CA Class B Office Buildings$34.34
  • CA Class C Office Buildings$22.62

San Jose, CA Office Asking Rents by Class

Office asking rents vary across the San Jose office market depending on several factors, one of which is property class. While rents for Class A office buildings in San Jose averaged $49.75 per square foot in 2019, Class B office properties garnered average rental rates of $33.03 per square foot. Rental rates for Class C office property in San Jose averaged $23.23 per square foot. On a statewide level, Class B office space rents averaged $34.34 per square foot, while rents for Class A office space across California averaged $51.59 per square foot. On average, Class C office properties in California commanded rents of $22.62 per square foot.

2019 OFFICE VACANCY RATES

Submarket Asking Rents Vacancy Rates
San Jose - West Valley $64.16 10.02 %
San Jose - CBD $60.29 13.73 %
San Jose - Alviso $44.02 28.10 %
San Jose - North $38.79 18.27 %
San Jose - North Central $35.84 6.24 %
San Jose - Berryessa $27.73 12.72 %
San Jose - South $25.15 11.51 %
Data provided by Commercial Edge
  • The lowest office vacancy rate in 2019 in San Jose was 6.24 % in the San Jose - North Central submarket, where asking rents averaged $35.84.
  • The highest office vacancy rate in 2019 in San Jose was 28.10 % in the San Jose - Alviso submarket, where asking rents averaged $44.02.

OFFICE CONSTRUCTION IN San Jose, CA

  • San Jose, CA Total Sqft completed in 2019 682,055
  • San Jose, CA Total Sqft under construction in 2020 4,869,287
10 Largest Office Buildings in San Jose
Building name Address Total Sqft Year built
2350 Harris Way 2350 Harris Way, 95131 49,662 1980
Paypal Headquarters 2211 North 1st Street, 95131 732,053 1999
Samsung Semiconductor Corporate Headquarters 3655 North 1st Street, 95134 679,223 2015
Cadence Design Systems Headquarters 2655 Seely Avenue, 95134 578,101 1992
IBM Almaden Valley Research Lab 650 Harry Road, 95120 502,750 1983
Maxim Integrated Headquarters 160 Rio Robles Drive, 95134 430,000 1990
One Santana West 3161 Olsen Drive, 95128 375,000 2021
Rio Tech Park 30 Rio Robles Drive, 95134 373,754 1984
50 West San Fernando Street 50 West San Fernando Street, 95113 353,527 1989
Adobe West Tower 345 Park Avenue, 95110 350,000 1996
Largest Office Properties Recently Completed in San Jose
Office building Address Sqft Completed
One Santana West 3161 Olsen Drive, 95128 375,000 2021
China Mobile Data Center Building 6320 San Ignacio Blvd, 95119 287,000 2021
North First & Brokaw Corporate Campus - Building B 122 East Brokaw Drive, 95112 242,320 2021
North First & Brokaw Corporate Campus - Building C 134 East Brokaw Drive, 95112 242,320 2021
North First & Brokaw Corporate Campus - Building D 1849 Bering Drive, 95112 126,895 2021
Bank of Italy Building 12 South 1st Street, 95113 126,448 2021
Samaritan Medical Center - Phases 1 & 2 2506 Samaritan Court, 95124 115,250 2021
Coleman Highline - Building 3 1173 Coleman Avenue, 95110 194,205 2020
Coleman Highline - Building 4 1167 Coleman Avenue, 95110 164,389 2020
1 West Santa Clara 1 West Santa Clara Street, 95113 104,166 2020
Data provided by Commercial Edge

Office Spaces for Rent in California

SAN JOSE OFFICE SALES TRENDS

  • $304.102019 Avg. Price per Sqft
  • 2.19 %Y-o-Y Avg. PpSF Change
  • $1.7B2019 Office Sales Volume
  • 302019 Number of Transactions

In 2019, office sales in San Jose averaged $304.10 per square foot. This marked a 2.19 % increase in office price per square foot, compared to the previous year. A total of 30 office sales closed on the San Jose office market in 2019, amounting to a total sales volume of $1.7B.

Average Office Sale Price per Sqft

San Jose, CA Sales Trends

  • San Jose Price per Sqft$304.10
  • California Price per Sqft$437.86

Office Sales - Trend and Volume

  • San Jose, CA Total Office Sales Volume in 2019 $1.7B
  • San Jose, CA Total Number of Office Sales Closed in 2019 30

Largest San Jose Office Sales in 2019

Property name Address Date Price
[email protected] - 130 Holger Way 130 Holger Way 3/11/2019 $148,000,000
[email protected] - 120 Holger Way 120 Holger Way 3/11/2019 $143,000,000
[email protected] - 110 Holger Way 110 Holger Way 3/11/2019 $138,000,000
Rose Orchard Campus 110 Rose Orchard Way 7/11/2019 $128,200,000
Market Square - North Tower 111 North Market Street 5/2/2019 $71,350,000
Data provided by Commercial Edge

See trends for nearby markets

The San Jose office market contains an inventory of 60,188,590 square feet of office space, in 782 buildings that are equal to or larger than 25,000 square feet.

This market trends report is based on analysis of city-level data. Averages were calculated based on values dated January 1st 2019 through December 31st 2019. Construction pipeline data shown is valid as of April 2020. The information on this page was compiled using data provided by our sister company, CommercialEdge – a market intelligence solution which offers comprehensive knowledge on all San Jose commercial properties sized 25,000 square feet or larger.

While every effort was made to ensure the accuracy of the data presented in this report, the information is provided “as is” and neither CommercialCafe nor CommercialEdge can guarantee that the information provided is complete.