SAN JOSE — A significant Bay Space transit company has immediately begun to scout for far more workplace house than first requested to accommodate its headquarters, administrative places of work and assembly hub.
The Santa Clara Valley Transportation Authority is now looking for as a lot as thrice as a lot workplace house as its unique requirement, in line with actual property paperwork obtained by this information group and confirmed by a number of industrial property specialists.
The VTA now’s on the lookout for as a lot as 500,000 sq. toes of workplace house close to a light-weight rail line within the South Bay, in line with an up to date request for proposals being circulated by Colliers, a industrial actual property agency that’s advising the transit company in its seek for a brand new headquarters.
Beforehand, the VTA had been searching for 75,000 to 150,000 sq. toes of places of work for its new administrative hub.
Loads of South Bay markets have buildings that might accommodate a tenant requiring 500,000 sq. toes close to a light-weight rail cease.
The downtown San Jose workplace emptiness fee is 31.5%, in line with a July 2024 report from CBRE, a industrial actual property agency. The general South Bay workplace emptiness fee is 16.5%.
“The supposed use for this facility is workplace and administrative work,” in line with the VTA headquarters request paperwork that Colliers is circulating. Colliers brokers Grant Zamudio, Paul McManus, Kevin Moul and Mike Lee are representing the VTA in its hunt for house.
VTA is eyeing 2026 because the goal 12 months to maneuver into the brand new places of work. The VTA is hoping to obtain the “finest and closing proposals” for the house by Sept. 18, the transit company said. A deal has but to be negotiated for a particular constructing.
The transit company’s quest for brand new headquarters is surfaced at a time when the VTA has encountered wide-ranging criticism and skepticism over its makes an attempt to carry a BART extension into downtown San Jose.
The BART undertaking has lumbered previous its price range targets a number of instances and is below scrutiny resulting from runaway prices.
Within the newest iteration of the VTA headquarters search, the transit company insists that the longer term administrative hub be inside 2,000 toes of a light-weight rail line. The unique request specified that the workplace constructing be inside 500 toes of a light-weight rail line.
“If there are various properties that now match these standards that you simply wish to submit, please contact the Colliers brokerage staff,” the Colliers brokers said in a brand new e-mail to the industrial actual property neighborhood.
Three workplace buildings in downtown San Jose seem like shut matches for the VTA’s unique — and smaller — preferences. Listed here are the buildings and a few particulars about them:
— One West Santa Clara, a four-story workplace constructing totaling 100,000 sq. toes. Jay Paul Co. is the principal proprietor. Newmark, a industrial actual property agency, is searching for tenants for the constructing, which is on the nook of West Santa Clara Road and North First Road.
— Paseo, a mixed-use workplace and restaurant constructing at 201 South Second Road. This constructing consists of 75,000 sq. toes of places of work and 25,000 sq. toes of retail and restaurant house. City Catalyst is the principal proprietor of the constructing.
— 2 West Santa Clara Road, a 10-story workplace tower totaling 100,000 sq. toes on the nook of West Santa Clara Road and South First Road. DivcoWest is the highrise’s principal proprietor. Newmark is searching for tenants for the constructing.
The brand new most house requirement adjustments may carry extra workplace buildings into play for the VTA to think about.
Quite a few South Bay workplace buildings are massive sufficient — and empty sufficient — that they might qualify by being with 2,000 toes of a light-weight rail line.
Even inside downtown San Jose, extra decisions exist with the broader parameters.
Listed here are some massive downtown San Jose workplace buildings that might doubtlessly qualify for the brand new VTA headquarters on the expanded dimension.
— 200 Park, a 19-story workplace tower totaling 971,000 sq. toes. The constructing is at 200 Park Avenue.
— 303 Almaden, an 11-story workplace highrise that totals 157,500 sq. toes. The constructing is positioned at 303 Almaden Boulevard.
— Almaden Crossing, a 17-story workplace tower totaling 390,000 sq. toes at 488 South Almaden Boulevard.
The transit company additionally desires the choice to purchase the workplace constructing, even when it begins its occupancy with a lease, in line with the Colliers request for proposals.
The VTA is searching for an choice to host public periods throughout the constructing.
“The tenant (VTA) would require an roughly 7,000-square-foot board room which might be out there on an unique and limitless foundation to accommodate public board conferences,” the Colliers paperwork state. “This house can be positioned on the primary or second flooring of the Constructing and would come with a dais, public seating space for as much as 300 folks, kitchen, convention room, inexperienced room, restrooms, and (know-how) infrastructure.”
A call on an area may come inside weeks or months, in line with the Colliers doc.
“The tenant (VTA) would lease a constructing from a landlord and signal a lease in This autumn 2024 or Q1 2025,” the Colliers doc states. The fourth quarter can be the October-through-December interval and the primary quarter can be the January-through March time-frame.