San Jose, CA - Office Market Overview
The San Jose real estate market includes the San Jose Downtown, North Valley, and West San Jose office space submarkets. With a metropolitan population of nearly 2 million, the economy is strong and robust and the San Jose office market sees significant demand from white-collar employers in the technology and education industries.
As of mid-2017, the San Jose office market encompasses nearly 42 million square feet of existing office space in properties larger than 50,000 square feet. San Jose is the epicenter of the world-famous Silicon Valley and attracts both high-technology and venture capital from around the globe, maintaining robust demand for Class A office space.
San Jose, CA - Office Inventory Description
In addition to the large number of high-tech companies located in San Jose, renowned schools such as the University of California, Berkeley, and Stanford University also contribute to the demand for office space in San Jose. With a gross metropolitan product of $188 billion annually, there is solid demand for white-collar office employment. Nearly 38% of the office space in San Jose is Class A or A+, while Class B inventory adds another 60% of space to the San Jose, CA, commercial real estate market.
The Downtown San Jose office market continues to see some of the highest demand for Class A office space in the city. Both portfolio investors and tenants are attracted to the prestigious trophy office properties of 50 W. San Fernando Street, City View Plaza, and Riverpark Tower on West San Carlos Street.
San Jose, CA Commercial Inventory Breakdown
Office Spaces
Total: 83,996,433 SF
By square footage range:
- 50k to 100k SF: 17,279,657 SF / 20.57% of total office
- 100k to 500k SF: 41,202,497 SF / 49.05% of total office
- 500k to 1M SF: 8,620,364 SF / 10.26% of total office
- > 1M SF: 16,893,915 SF / 20.11% of total office
By class:
- Class A: 20,966,757 SF / 24.96% of total office
- Class B: 32,155,533 SF / 38.28% of total office
- Class C: 1,039,628 SF / 1.24% of total office
San Jose, CA - Green Office Space
Of the Top 30 Green Office Markets in the U.S., San Jose ranks 18th for energy-efficient office buildings in the 2017 National Green Building Adoption Index. While nearly 5% of the city’s office buildings larger than 50,000 square feet are LEED-certified, over 6% rank as Energy Star-rated and over 10% are recognized as otherwise green buildings.
The Sun Power San Jose Headquarters at 145 Rio Robles Drive is a prime example of a LEED-certified building. Originally constructed in 1985, with over 57,000 square feet of space, the property has been updated to today's green energy office standards. As tenants and national and global investors seek out green certified office assets for their use and portfolios, the green office trend will continue to grow in San Jose.
San Jose, CA's Top Office-Using Sectors
As the capital of Silicon Valley, San Jose has an enormous concentration of high-technology, engineering, and computer businesses. The world-famous universities in San Jose create thousands of highly skilled white-collar workers each year to supply the needs of the booming technology industry.
- Computer – The commercial real estate market in San Jose is home to computer-related development and manufacturing companies such as Cisco Systems, Adobe, and Hewlett-Packard.
- High Technology – Lockheed Martin, PayPal, eBay, Netgear, and Integrated Device Technology are just five examples of the high-tech companies located in San Jose's Silicon Valley that create demand for Class A office space.
- Education – In order to meet the nearly insatiable demand for highly-trained workers, institutions such as the University of California - Berkeley, San Jose University, and Stanford University educate thousands of skilled employees each year.
- Corporate Offices – The demand for white-collar Class A office space in San Jose also comes from countless companies that employ thousands of people, including Altera, Hitachi, IBM, Cypress Semiconductor, and TiVo.
San Jose Demographics
Population
- Total Population1,023,031
- Male Population(50.5 %) 516,124
- Female Population(49.5 %) 506,907
- Median Age36.40
Income/Financial
- Average Household Income$124,356
- Median Household Income$96,662
- Median Income Under 25$44,915
- Median Income 25-44$111,129
- Median Income 45-64$110,098
- Median Income Over 65$54,452
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