A short list of landlords in downtown San Jose appear to have the inside track as a regional transit agency seeks a big office lease lease.
The Santa Clara Valley Transportation Authority wants a deal for between 75,000 and 150,000 square feet for a new headquarters, the San Jose Mercury-News reports. The agency — a public authority in Silicon Valley — is open to a lease with an option to buy.
According to a request for proposals issued obtained by the Mercury News, the transit agency has a focus on downtown San Jose,
The VTA, which has hired Colliers for representation on the search, wants a building within 500 feet of a light rail line with pedestrian access to a pending new BART stop, criteria that favor a trio of buildings:
- Jay Paul Company’s One West Santa Clara, which has 100,000 square feet over four floors at West Santa Clara Street and North 1st Street.
- Urban Catalyst’s Paseo, with 75,000 of office space and 25,000 square feet of shops and dining at 201 South 2nd Street.
- DivcoWest’s 2 West Santa Clara Street, which counts 100,000 square feet of office space at West Santa Clara and South 1st Street.
The request for proposal points to 2026 as the date for a move to the new headquarters.
The desire to find a place in downtown San Jose comes as the VTA faces questions over its role in an extension of the Bay Area Rapid Transit (BART) line to the city’s center. The battles involve eminent domain in taking property for a new station.
A new tenant to fill 75,000 square feet to 150,000 square feet in downtown San Jose would no doubt be welcome news for a landlord as well the city in general.
San Jose’s office market has continued to struggle in the wake of the pandemic and the work-from-home trend, with a vacancy rate of 31.5 percent in the second quarter, according to CBRE.