For the past several years, office vacancies in Downtown San Jose have been astronomical. I remember the Sobrato tower sitting empty waiting for an owner for what seemed like ages. Even today, one of the River Park Towers is still empty.
The good news is that a huge dent has been made towards reducing these vacancies in the last year. During Q3 2011, the vacancy rate of office space Downtown was an abysmal 27.1%. That has since dropped to 21.5% in Q3 2012, a 5.6% reduction. Still not fantastic, but substantially better than the year before. I think in 2013 we'll finally see this number drop below 20%.